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iSeeit!: Segmentation Process

Organizations segment markets so they can respond more effectively to the wants of potential buyers and increase overall sales and profits. By identifying similarities between customers, businesses can identify their specific needs, take steps to segment and target markets, and then execute a marketing program based upon the dynamics of product, price, promotion and place. You can find segmentation in action as Justin begins his process of deciding which new vehicle is right for him. Marketers must know and understand what customers like Justin are looking for when they develop and market their vehicles. Using a perceptual map, they map the characteristics customers like Justin place emphasis on$,$ such as practicality $($good mileage and economical$)$ and style $($good looks and cool extras$).$ Then they create products that are attractive and develop marketing messages that customers like Justin will respond to$.$ While Justin makes the final decision based upon what is important to him, marketers make sure they have developed their brands and products to make their vehicles attractive to specific market segments.

Market segmentation is the process of dividing individuals into groups that have common needs and will respond similarly to marketing communications. Each market consists of people who are relatively similar to each other and allows businesses to effectively differentiate their products by linking needs to an organization$$s marketing program.

Click the $?$ button to watch the video. Then, answer the questions that follow.

Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as

Multiple Choice

product differentiation.

market segmentation.

market positioning.

market cataloging.

market differentiation.