Can you help me with these? Describe how marketing segmentation helps identify t

Question

Can you help me with these?

Describe how marketing segmentation helps identify target markets.

Explain each of the common bases for segmenting consumer markets.

Identify the criteria necessary for achieving effective segmentation.

Describe basic strategies for satisfying consumers in particular target markets.

Explain the purpose of positioning and give examples of different positioning strategies.

Explain the steps in the marketing research process.

Distinguish between primary and secondary data and identify ways to obtain each kind of data.

Explain the different sampling techniques used by marketing researchers.

Explain how using computer technology in marketing information systems (MISs), marketing decision support systems (MDSSs), data mining, business intelligence, and competitive intelligence can enhance marketing decision making.

Identify the major types of forecasting methods.

Contrast transaction-based marketing and relationship marketing.

Explain basic elements of relationship marketing.

Outline the relationship marketing continuum.

Indicate how internal marketing plays a major role in relationship marketing.

Give examples of how marketers of consumer goods and services build positive buyer-seller relationships.

Explain customer relationship management (CRM) and how technology is used to build customer relationships.

Identify different types of partnerships in B2B marketing.

Describe cooperative techniques that buyers and sellers in the B2B markets use.

Explanation / Answer

1. As people and communities grow more diverse, it becomes risky for an organization to offer the same marketing mix to such different consumers. Market segmentation provides businesses with the possibility of customizing a unique set of elements known as the 4P’s (product, price, place, and promotion) for specific target markets. Therefore, it allows them to satisfy their customers’ needs in a more effective way; through a value proposition that is potentially superior to that of any other competitor. Market segmentation refers then to the process of defining and breaking down a wide market into clearly identifiable and homogeneous groups of consumers with similar characteristics, wants, and needs.

2.The basis for segmentation is a factor that varies among the groups of a certain market, but is consistent within each group. All markets can be broken down in different ways, and although many of the bases used to segment a consumer market can also be applied to businesses and organizations, the sheer nature of these eventually leads to other specific segmentation bases. The following is a comparative chart of the criteria or basic strategies to segment both market types:

Consumer market

Business market

Type of segmentation

Variables

Type of segmentation

Variables

Geographic

Geographic

Demographic

Customer type

Psychographic

Buyer behavior

Behavioral

Criteria needed for segmentation

For segmentation to occur:

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing or niche marketing.

1. Mass marketing - Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible.

2. Differentiated marketing - A differentiated marketing strategy is one where the company decides to provide separate offerings to each different market segment that it targets. It is also called multisegment marketing. Each segment is targeted uniquely as the company provides unique benefits to different segments.

3. Concentrated marketing - Concentrated marketing is a strategy which targets very defined and specific segments of the consumer population.

4. Niche marketing - In marketing, a niche refers to a service or a product that occupies a special area of demand. It is that small corner in the market that accounts for a certain kind of specialty concerning an unmet customer need. Niche marketing is the process of finding market segments that are small but potentially profitable nonetheless.

Consumer market

Business market

Type of segmentation

Variables

Type of segmentation

Variables

Geographic

Region, climate, population density, and population growth rate

Geographic

Location, customer concentration, regional industrial growth rate, and international macroeconomic factors

Demographic

Age, gender, ethnicity, nationality, education, occupation, religion, income, and family status

Customer type

Size of the organization, its industry and position in the value chain

Psychographic

Values, attitudes, opinions, interests, activities, and lifestyles

Buyer behavior

Loyalty to suppliers, usage patterns, and order size

Behavioral

Usage rate and patterns, price sensitivity, brand loyalty, and pursuit of benefits

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