CHOOSING THE RIGHT
CUSTOMERMarket Segments
WHY ARE CUSTOMERS IMPORTANT?
“Your most unhappy customers are your greatest source of learning”-Bill Gates
KEY TERMS Mass Marketing: Using the same
marketing strategy to appeal to everyone
Market Segment: A group of individuals within a larger market that share one or more important characteristics
TYPES OF SEGMENTATION Geographic
Climate, urban vs. rural, population Demographic
Age, ethnicity, occupation, gender, income Psychographic
Moral values, attitudes, lifestyle choices
QUESTIONS TO ASK…When determining your market segments,
ask yourself…1. Is it identifiable? • Can your group be measured and studied?
2. Is it accessible?• Can you communicate with your segment?
3. Is it substantial?• Is your group large enough to make a
difference?
4. Is it unique?• Does the segment have distinct needs?
What is the difference between mass marketing and market segmentation?
What are three types of market segmentation?
What are four questions you should ask yourself?
FINDING THE CUSTOMERSSo, you’ve figured out who your best
customers would be (based on segmentation) but now you need to *find* those customers.
How do you find them?
INDUSTRY WAYS… Customer Data: Look at the information
you have on your current customers Industry Research: Trade groups collect
consumer data for their members Trade group is a ‘club’ for people in your
industry American Dental Association Bread Bakers Guild of America National Restaurant Association
Giveaways: Entice customers to give you their information in exchange for free stuff!
Outsourcing: Pay someone else to do it
Consider the four industry ways to find your customer data and answer the following questions.
1. Which is the most expensive? Why?2. Which is the easiest? Why?3. Which is the most helpful? Why?
MCDONALD'S
SOURCES What is Market Segmentation and How
Can It Increase Sales? Inuit Small Business Blog, July 12, 2013
Segmentation, Targeting, and Positioning – McDonald’sYouTube, March 6, 2013
TODAY’S ASSIGNMENT In the K-Drive, open the file ‘Choosing the
Right Customer’ and answer the questions.
Save: Choosing the Right Customer Last Name
Upload to Dropbox when complete