BUS 448 Study Guide - Quiz Guide: Market Segmentation, Customer Relationship Management, Effective Demand

• School: Stony Brook University
• Department: Business Management
• Course: BUS 448
• Professor: Stacey Finkelstein

Document Summary

Reading 2: a note on consumer market segmentation. Segmentation aids marketing decision-making in 4 ways: Segmentation helps the marketer by identifying groups of consumers to whom he/she could more effectively target marketing efforts for the product or service. Segmentation helps the marketer avoid trial-and-error methods of strategy formulation by providing an understanding of these consumers upon which he/she can tailor the strategy. In helping the marketer address and satisfy customer needs more effectively, segmentation aids in the implementation of the marketing concept. On-going consumer analysis and market segmentation provides important data on which long-range planning (for market growth or product development) can be used. If a marketer had evidence that all customers within a market have similar needs to be filled by the product or service in question (an undifferentiated market), one mass marketing strategy would probably be appropriate for the entire market. This is unlikely in today"s market environment.