MKTG101 Lecture Notes - Lecture 6: Customer Relationship Management, Retail, Psychographic
Chapter 6 (STP)
Market segments
• Sugroups ithi the total arket that are relatiel siilar i regards to ertai
characteristics.
• Ma orgaisatios target oth B2C ad B2B, ut appl differet strategies to eah setor.
Three premises about the marketing concept have been recognised:
• Different market segments can exist due to differing needs and wants.
• Customers within segments will tend to choose the product or service of the
organisation that most closely satisfies their particular needs and wants.
• The fundamental task of the organisation is to develop effective marketing
programmes to reach the customers or segments that have been identified by
research
Segmenting consumer markets
The variables for segmenting consumer markets fall into four broad categories:
• Deographi • Geographi
• Pshographi • Behaioural.
Effective segmentation involves choosing segmentation variables that are easy to measure
and readily available, and linked closely to the purchase of the product in question.
Business Market segmentation
• Business markets are often characterised by a small number of buyers who might
displa a er lose relatioship ith the seller. Custoised or Oe-to- oe
marketing is a good approach to use.
• Business marketers often isolate business customers by using commercial industrial
directories that contain detailed information on companies.
Effective Segmentation criteria
Effective segmentation involves ensuring:
• Measurailit – abstract variables (e.g. personality) can be difficult to measure
•Deographi ariales highl easurale ith etesie data aailale through
commercial databases and ABS
• Aessiilit – through distribution and communication channels
•Segets ust e learl idetified, reahed ad sered
•Opiio leaders iportat – but difficult to identify and communicate with
• Substantiality – the segment must be of sufficient size to allow profitability
•Ideall as large as possile, ut still be homogeneous in purchase preferences and
behaviour
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