Customers, Segmentation,And Targetmarketing
Customers, CHAPTER Segmentation,and TargetMarketing 5 H I INTRODUCTION G G In this chapter, we begin our discussion of marketing strategy by examining custo- mers, segments, and target markets. In Chapter 1, weS referred to a market as a col- lection of buyers and sellers. Now, we focus our, attention on the buyers who collectively make up the major portion of most markets. From this perspective, we concern ourselves with markets as individuals, institutions, or groups of individuals or institutions that have similar needs that can be metS by a particular product offer- ing. As we shall see, firms can attempt to reach all buyers in a market, smaller groups or segments of the market, or even specific buyers onH an individual level. Whether the firm aims for the entire market or smaller marketA segments, the goal of market- ing strategy is to identify specific customer needs, then design a marketing program that can satisfy those needs. To do this effectively, theN firm must have a comprehen- sive understanding of its current and potential customers,I including their motiva- tions, behaviors, needs, and wants. The ability to determine in-depth information aboutC customers is a fairly recent phenomenon in marketing. Fifty years ago, for example,Q technology and marketing know-how were less sophisticated. Marketers of the dayU were unable to fully under- stand customers’ needs and wants, much less make fine distinctions among smaller segments of the total market. Marketers tended to offerA products that came in only one variety, flavor, or style. Today, market segmentation is critical to the success of most firms.
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