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Marketing Management 15th Edition by Philip Kotler, Kevin Keller
Edition 15ISBN: 978-0133856460Marketing Management 15th Edition by Philip Kotler, Kevin Keller
Edition 15ISBN: 978-0133856460 Exercise 1
How can we spot and choose the right market segment(s)?
Explanation
Verified
Verified
Spotting and choosing customer segment for a product is an old Production-Oriented concept where the chain is as follows:
In a modern day Marketing Concept the focus is customer. Customer-centric businesses first identify the groups of customers and then study their unfulfilled requirements. Business models are made to satisfy these unfulfilled needs and wants.
These groups of customers are the market segment that the business wants to cater. Segmentation can be achieved through examining the differences in the dimensions of- demography, psychography and behavioural.
For an example: Working women may aspire for quick recipes or easy-to-handle appliances etc. Now this group called working women becomes a segment to satisfy. This set of working women can be further subdivided in terms of their income or age or lifestyle. Such parameters are considered for providing specific products or services that motivate these groups to consume the offerings.
Similarly , nightclub goers may wish to have counters where they can safely keep their overcoats /jackets. Now this becomes a segment with a desire to be fulfilled.
Teenagers sensitive about environment urge to buy green products or fair trade products. This group represents a segment.
Thus, the identified segments are very vast. Entrepreneurs need to subdivide the segments into more unified categories based on the three dimensions mentioned earlier. It would help to better fulfil each segment's want. The segmentation is a function of the 'wants' that the entrepreneur is trying to fill. It also depends on the capabilities of the entrepreneur to understand and correctly fit in the offerings.
In a modern day Marketing Concept the focus is customer. Customer-centric businesses first identify the groups of customers and then study their unfulfilled requirements. Business models are made to satisfy these unfulfilled needs and wants. These groups of customers are the market segment that the business wants to cater. Segmentation can be achieved through examining the differences in the dimensions of- demography, psychography and behavioural. For an example: Working women may aspire for quick recipes or easy-to-handle appliances etc. Now this group called working women becomes a segment to satisfy. This set of working women can be further subdivided in terms of their income or age or lifestyle. Such parameters are considered for providing specific products or services that motivate these groups to consume the offerings.
Similarly , nightclub goers may wish to have counters where they can safely keep their overcoats /jackets. Now this becomes a segment with a desire to be fulfilled.
Teenagers sensitive about environment urge to buy green products or fair trade products. This group represents a segment.
Thus, the identified segments are very vast. Entrepreneurs need to subdivide the segments into more unified categories based on the three dimensions mentioned earlier. It would help to better fulfil each segment's want. The segmentation is a function of the 'wants' that the entrepreneur is trying to fill. It also depends on the capabilities of the entrepreneur to understand and correctly fit in the offerings.
Marketing Management 15th Edition by Philip Kotler, Kevin Keller
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