ECO 304L Study Guide - Midterm Guide: Ferrero Rocher, Pottery Barn
Steps in Segmenting the Market
The Steps
Segmentation begins with identifying all potential buyers for a product. By using the steps
below, this large group of potential buyers can be divided into clearly identifiable subgroups,
or segments, based on similar characteristics or needs.
1. Select a market or product category for study
2. Choose a basis or bases for segmenting the market
3. Select segmentation descriptors
4. Profile and analyze the segments
5. Select target markets*
6. Design, implement, and maintain appropriate marketing mixes
*May need to repeat steps 1-4 if target markets are not clear
Potential Buyers
These shapes represent a large group of potential buyers. Keeping in mind that there is not
one right way to segment a market, let's explore different bases to segment this group of
buyers.
By Shape
This group can be subdivided (segmented) based on shape...
By Color
...or based on color...
Both
...or both. You can think of the colors as one segmentation variable, such as age group. Shape
might represent another variable, such as geographic location.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Segmentation begins with identifying all potential buyers for a product. *may need to repeat steps 1-4 if target markets are not clear. These shapes represent a large group of potential buyers. Keeping in mind that there is not one right way to segment a market, let"s explore different bases to segment this group of buyers. This group can be subdivided (segmented) based on shape You can think of the colors as one segmentation variable, such as age group. Shape might represent another variable, such as geographic location. Another consideration in segmentation deals with the type of market. When virtually all potential buyers in a market are purchasing a product, a new entrant (seller) has to steal customers from existing competitors. Doing so is a marketing challenge fundamentally different than selling into an immature market where potential buyers have yet to start purchasing a product in the category.
