Customer Segmentation
Developing a customer segmentation will help HHE achieve its sales goals and increase its growth. As Zoltner, Sina, and Zoltner (2001) stated, customers and prospects “have different product and service needs; different sales, sales potential, buying influences, and buying processes; and different attitudes toward innovation, cost, and service”. Therefore, segmenting the customers and prospects according to their profiles, behaviors, and needs will help the company create proper sales approach to each segment.
The company has to define meaningful, measurable, and actionable segments through a coordinated effort (Zoltners, 2001) and then do a finer segmentation by the sales team. HHE could use the priori approach, in which the company identify the customer and prospect characteristics, such as the size of the hospitals and pre-hospitals and whether
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The framework of the account strategies would be: Low Potential,
Voluntary Low Potential, Proprietary High Potential,
Voluntary High Potential, Proprietary
Very large customer,
Product-driven Low effort Medium effort Understand account needs Partner based on the product’s benefits
Very large customer,
Service-driven Low effort Medium effort Understand account needs and competition Partner based on value-added services
Large customer,
Product-Driven Low effort Medium effort Understand account needs Partner based on the product’s benefits
Large customer,
Service-Driven Low effort Medium effort Understand account needs and competition Partner based on value-added services
Medium customer, Product-driven Pull back Low effort Medium effort Understand account needs
Medium customer, Service-driven Pull back Low effort Medium effort Understand account needs and competition
Small customer, Product-driven Pull back Pull back Low effort Medium
The company first needs to collect demographic and geographic information relevant to potential store location choices in order to segment its market. It is extremely important that the marketing
The first step is to (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way (Consumer Psychologist, n.d.). •
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
A segment profile comes down to describing customer characteristics of a typical customer. It is important to build profitable relationships with the right customer is good for the marketer’s stakeholders. After this, the brand can start to build up their company target market, as well as selecting merchandise that would be best for the store.
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
Healthcare organizations are designed to meet the healthcare needs of individuals and promote a healthy community. The three healthcare organizations that interest me are: The Heart Hospital Baylor of Plano, Texas Health Center for Diagnostics & Surgery Plan, and Parkland Health and Hospital System. Due to the evolving healthcare industry, focusing on just patients and physicians is no longer a marketing strategy. According to Mycek (2015), “Marketing teams need to expand their consideration set and focus on the new 5 P’s of Healthcare Marketing” (p. 1).
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Developing a new sales organization, which it calls market organization structure where salespeople are assigned specific types of customers and required to meet their customer needs. That the advantage for Western Region when it organizing according to these customer types: grocery chains and food coops, distributor, and etc. This ensure the depth of understanding how their customer use and purchase their products. Decreasing the number of customer duplication. However, the disadvantage of this organization structure, salespeople would be more pressure due to so many of customer types. In addition, the company would spend more money just to meet the customer
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.