MKT 310 Lecture 7: WEEK 7
25 May 2016
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Document Summary
Segmentation: identifying meaningfully different groups of customers. We identify segments that already exist; we do not create segments (we just have to uncover their existence) Homogeneous between: similar enough as a group (easy to see they are different from other groups) to know immediately who they are. Heterogeneous between: two groups that are very different from each other, also must be able to measure how large the segment is. Segment must be reachable or accessible to marketers. Segment must be substantiable enough to make it a profitable group to target. Group cannot have such specific and unusual needs that aren"t practical to create a product for them. A segment that is not profitable is not a viable segment. Segmentation begins with benefits, needs, or attributes in a particular product category. The benefits are then clustered into broader categories that seem to fit together. Then you try to identify the features of those for whom that benefit is important.
