ABSTRACT
Consumer and business-to-business markets are segmented. There is no one correct way to produce segments. A large range of options exists (cf. Figure 11.1).
Typically, a combination of these variables is used by a marketing team in order to produce a segmentation scheme for a given product or service. It is essential that the customers placed in a specified segment have similar product needs,
be produced in order to attract and satisfy a tightly defined group of like-minded customers. This should lead to enhanced customer satisfaction, greater likelihood of fending off competitors, and prudent use of resources, particularly those supporting the sales and marketing activity within a business. The effective use of resources results from the second facet of market segmentation: targeting (cf. Brief 12). The final part of the segmentation process is positioning (cf. Brief 13).
