BUSI 4220U Chapter Notes - Chapter 6: Geodemographic Segmentation
Document Summary
Today"s market realities often make segmentation imperative. Identify a homogeneous segment that differs from other segments: the 4 ps, specify criteria that define the segment, determine segment size and potential. Segmentation decisions are best made in one of three ways: who the customers are, where they are, how they behave. Where they are: segmenting geographically: the area included within such a geographically defined region is called a trade area. In emerging and developed markets alike, many segmentation schemes involve both demographic and geographic factors. Innovative segmentation: a key to marketing breakthroughs: three steps in the market segmentation process. Not all segments represent equally attractive opportunities for the firm. One useful analytical framework managers or entrepreneurs can use for this purpose is the market attractiveness/competitive position matrix. They can estimate the strength of the firm"s competitive position by looking at the firm"s capabilities or shortcomings relative to the needs of the market and the competencies of likely competitors.
