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Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately. In business-to-business marketing, a company might segment customers according to a wide range of factors, including: In business-to-consumer marketing, companies often segment customers according to demographics that include: Segmentation allows marketers to better tailor their marketing efforts to various audience subsets. Those efforts can relate to both communications and product development. Specifically, segmentation helps a company: Customer segmentation requires a company to gather specific information – data – about customers and analyze it to identify patterns that can be used to create segments. Some of that can be gathered from purchasing information – job title, geography, products purchased, for example. Some of it might be gleaned from how the customer entered your system. An online marketer working from an opt-in email list might segment marketing messages according to the opt-in offer that attracted the customer, for example. Other information, however, including consumer demographics such as age and marital status, will need to be acquired in other ways. Typical information-gathering methods include: Common characteristics in customer segments can guide how a company markets to individual segments and what products or services it promotes to them. A small business selling hand-made guitars, for example, might decide to promote lower-priced products to younger guitarists and higher-priced premium guitars to older musicians based on segment knowledge that tells them that younger musicians have less disposable income than their older counterparts. Similarly, a meals-by-mail service might emphasize convenience to millennial customers and “tastes-like-mother-used-to-make” benefits to baby boomers. Customer segmentation can be practiced by all businesses regardless of size or industry and whether they sell online or in person. It begins with gathering and analyzing data and ends with acting on the information gathered in a way that is appropriate and effective.
Why Segment Customers?
How to Segment Customers
Using Customer Segments
Any physical good, service or idea that satisfies a want or need is a ________
Why are B2B based on selling?
1. Customer demand personal service for larger investments2. Fewer customers
3. Large purchase cost more & are complex
The set of values, attitudes & ways of doing things that result from belonging to a certain ethnic, racial or other group with which one closely identifies is called a _________
The middle links in a series of organizations that distribute goods from producers to consumers are called ________
Some activities involved in marketing are:
1. Developing the exchange process2. Advertising
3.
In Customer Relationship Mgmt (CRM) you do everything you can to satisfy your customers or even to _____ their expectations.
1. Personal sales2. Advertising3. Public Relations4. Word of Mouth
5. Sales Promos (Coupons/rebates/etc)
Dividing the market by age, income & education is called _____ segmentation.
The segmentation technique where the product features appeal to certain segments is _______
Dividing the market using a group's values, attitudes and interests is called _______ segmentation.
Psychographic Segmentation
Consumer behavior is the study of people's ______ decisions & the factors that influence those decisions.
A 3-part business philosophy that involves, customer, product & profit orientation is the _____ ______ era of marketing.
When a business selects groups or segments that they can serve most profitably, it is called ____ ______
Testing a product among potential users is called ______ ________
Changes in an individual's behavior resulting from previous experiences & information is _______
Dividing the market into groups who have similar characteristics is _____ _______
States try to attract two types of groups:
1. Tourists
2. New Businesses
Customer orientation is finding out what the consumers _______ and providing it for them.
Identifying the factors in the environment that affect marketing success is the process called ____ ___
Developing a unique mix of goods & services for EACH individual customer is ______ ____ ______ _______