As the spread of the global marketplace continues, aided by satellites, the World Wide Web, and universal problems, it will also become increasingly difficult to effectively assess the market. In fact, there is solid evidence that the market will often consist of a single person or company. Customized product design, relationship marketing, and one-on-one marketing suggests that marketing has gone full circle. Like the first half of the twentieth century, when the corner grocer knew all of his customers personally, marketing in the rest of the twenty-first century may look very similar.
- Bases of segmentation
- ultimate consumers
- type of customer
- end uses
- common buying factors
- size and geography
- single-base versus multi-base
- qualify people into segments
- clarity of identification
- actual or potential need
- effective demand
- economic accessibility
- positive response
- segmentation process
The Wall Street Journal (wsj.com)
What is the market? It depends on your product but, generally, all markets possess similar, basic characteristics. The market is people, either individuals or groups, businesses or institutions. The market is also a place, as in marketplace, where transactions take place. Finally, the market is an economic entity, influenced by financial pressures and government regulations.
In order to sell a product, marketers must know their market and know it well. Four primary markets exist, but they are not mutually exclusive. Consumer, industrial, institutional, and reseller markets all have characteristics specific to their consumers, but they also overlap in many instances. As a resull, most successful companies segment their markets. By segmenting markets,a company can match the needs and wants of consumers to its product.
Print magazines and their online counterparts are excellent examples of market segmenting. The Interactive Journal targets the business community, while Outside Magazine (www.outsidemag.com) clearly targets outdoor enthusiasts.
You are able to customize the Interactive Journal to your personal preferences. On the Front Section, click on Personal Journal on the main menu. From here you will be directed to the Setup Center. Here, you can create folders in three separate areas:
In the News section, you can search for news items in the Interactive Journal using key words, company names, and industry type. Articles meeting the criteria you specify
will be listed automatically on a daily basis. Set up your own News folder now.
In the Favorites section, you can track regularly running columns and features in the major sections such as Marketplace and Tech Center. Create your own Favorites folder now.
In the Portfolio section, you can track your purchases and sales of specific stocks.
Identify three to five companies with segmented markets. Visit their websites for specific information about the companies and their products. Also search the Interactive Journal for more information about the companies you have identified. For each company, identify the segmented market and list specific characteristics about that market.
- What are the advantages of identifying and selling to segmented markets versus broader, general markets?
- How do companies identify the market most likely to buy their products?
- Describe why market segmenting helps the companies you identified in your Deliverable sell their products.
- How can you use the Interactive Journal to learn more about markets?