Marketing notes Business Notes New Business Divisions and Ideas • Recommended rappers and hip-hop stars. Competitive Trends • Signed an agreement to be the same supplier with the NBA and NFL. • Segments: Teens make up 32% of sales Women's sales are higher than men's More than 62% of sneakers purchases under $62 Running shoes #1 seller Casual styles have a strong fashion component why business? • A company segmented its business to better serve the needs of a group of buyers, thus increasing sales and profits. • Nonprofits serve the customers they work to meet the needs of these while achieving the organization's goals. What does Market Segmentation Mean? • Market Segmentation: Divide buyers into groups with their needs and will respond to marketing in a similar way. Identify business needs for the organization's business plan. Demand determination process (benefits, price, etc.) segmentation and positioning Marketing price, promotion, location). • Market Segmentation: Potential buyer groups result from market segmentation. • Product Differentiation: The concept of using various marketing mixes, such as product features and advertising, to help customers perceive the product as different and better than competing products. SEGMENTATION: LINKING NEEDS WITH ACTIONS • Marketing Segmentation begins by identifying the importance of serving groups of people or organizations in the market based on similarities in the needs and values they look for when purchasing a . • Such needs and benefits must be related to the specific business being offered to the organization.
How Reebok's Segmentation Strategy Was Developed Using the Market-Product Grid • Market-Product Grid: A framework for market integration with the company's products or marketing campaigns. When to Segment a Market • A company will experience difficulty and expense in segmenting the market in the hope that this will increase sales, profits and return on investment.