Nordstrom : A Market Segment, Targeting, Managing The Crm, And Identifying New Product Development Opportunities

Nordstrom : A Market Segment, Targeting, Managing The Crm, And Identifying New Product Development Opportunities

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Milestone Three consists of the following: identifying your market segment, targeting that segment, managing the CRM, and identifying new product development opportunities

1. Divide your target market into segments. Address how the markets will be segmented and how the CRM will allow you to retain your segmented markets.

Nordstrom segments are broken down into preference segments. There are three segments that Nordstrom has containing the following: homogeneous, diffused, and clustered. Homogeneous is a market with no natural segments. Diffused is a market with evenly distributed preferences with no concentration. Finally, a clustered market when natural segments exist and may be effectively targeted. Nordstrom’s segments focus on inside mobile individuals and households (Nordstrom’s Expansion).

Nordstrom’s behavioristic characteristics are buyer purchase occasions. Nordstrom emphasizes special purchase occasions for a relatively wide variety of consumer needs. Next, Nordstrom has benefits sought by buyers through purchase. Nordstrom targets consumers who want high levels of customer service and a high value/price ratio. Nordstrom logs and tracks the user status of buyers, potential users, first-time users and regular users of a specific product. Finally, Nordstrom has a product usage for different user groups and loyalty status of buyers (Nordstrom’s Expansion).

2. How does the business market to its segments? Specifically include the following:
a. The promotional mix from Milestone One

Nordstrom uses Facebook, Pinterest, Twitter and Google + to promote new products. Nordstrom has attracted 2.4 million likes to its Facebook page. It posts several updates per day with a surprisingly relentless focus on direct...

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...rtunities should this business produce to enhance its market share?
Nordstrom wants to focus on tackling technology to drive growth and sales.

“Nordstrom management determined, for instance, that 25% of all online shopping was done by mobile phones in 2013, so it has quickly prioritized enhancing mobile service for 2014.” Nordstrom will move forward with phone apps to make shopping easier. The company will improve this in the future by having better graphics, more impressive three dimensional photos, and better product descriptions. Mobile phone sales will each 2014, with a total of 30% in Internet sales, and reach 40% in the next five years. Customers will order on the phone and pick up merchandise in stores. This will result in retailers like Nordstrom, Macy’s, J.C. Penny, Kohl’s, and Target will set the new priorities for investment and service (Loeb).

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