Page 46 - Marketing the Basics 2nd
P. 46
3
segMentation, targeting and positioning
Once the firm’s corporate strategy has been defined, it is up to the marketing department to find new customers and to keep the ones they currently have. The practical tools that they use are the marketing mix elements, which we’ll explain in Chapters 5–8.
MARKET SEGMENTATION
Market segmentation is the practice of dividing a large heterogeneous market into smaller subgroups with shared characteristics in order to deliver a market offering that satisfies unmet needs as closely as possible. To be classified as a market segment, it must have the following six characteristics:
1 Homogeneity: The segment must share at least one variable in common.
2 Measurable: The size, purchasing power and characteristics of the segment can be quantified.
3 Substantial: The segment must be large enough to yield an economic profit.
4 Accessible: The segment must be easy to distribute to and serve after-sales support.
5 Differentiable: The segment must react differently to a marketing mix element than another segment.
