Customer segmentation refers to the division of customers in a market according to similarities they share. Such characteristics include spending routines, age, gender, interests among other traits. Segmentation is an efficient marketing tool as it allows the organization to focus on a group of customers in the market. The management is able to use segmentation to allocate adequate resources that address the selected group. The management of an organization use segmentation as an innovation tool. The organization is able to identify the needs of majority of its customers and produce a product aimed for this market. Segmentation as an innovative and marketing tool enables the organization to attract and retain a client base that will support an organization's operation.
Marketing research is among the methods used to evaluate the customers segments in a market. Customer segmentation profiling enables the producer to identify the consumer group to target in the market. From profiling, the management is able to understand the needs of the customers and formulate ways of addressing these needs. Profiling also enables management to understand the efficient ways that the company can use to reach the selected segment. New and old businesses can make use of market segmentation. New businesses can use market segmentation to enter a market while established organization can use market segmentation to maintain their revenue base (Hulten, 2007).
Organizations that use segmentation as a marketing strategy ensure that they produce products for all segments but focus on one segment. The segment may be responsible for high volumes of sales or high revenue generation. Large organizations often focus on the needs of many segments by producing products that cater for each segment. Segmentation ensures that the organization maximizes it potential to attain its goals. The paper evaluates how market segmentation affects the marketing strategy used by Toyota. Toyota is a Japanese car manufacturer that provides vehicles to a global market.
Segmentation
The company is among the major car producers in the market providing a wide range of products. The company uses segmentation to maximize...
This is an essential requirement of their roles in an organizations s they progress to more senior positions over time (Nejmeh, 1994). Mastery of complex software is a critical aspect of how members of this market segment continually improve their marketability and also gain greater options for career transitions into senior management. In selling to this segment, it is imperative to not just sell at them, but to educate
It is a broader notion or the next evolutionary stage of client relationship management approach. A customer-centric organization is defined as the one, offering long-term constant and consistent best quality experience to clients 'over all customer access points; across all marketing, sales, and service programs; throughout all parts of the organization.' As can be clearly inferred from this definition, the product will vary over time to satisfy evolving clients needs,
Customer Loyalty Affecting Customer Loyalty Customer Grade Course This research study introduces a comprehensive conceptual framework of customer loyalty within the retail sector. It emphasizes on the perceived loyalty amongst fast moving consumer goods and attempts to explore the moderating effects of the various different factors that might influence them. The researcher will begin by creating an understanding of the term "customer loyalty" and its significance importance in the retail sector. Additionally, the researcher
It is possible to find examples of nearly every service business in existence using SERVQUAL or a variation of this methodology to quantify customer service performance. An interesting second development is the correlation found between customer satisfaction, market share and profitability (Anderson, Fornell, Lehmann, 1994). Based on the strength of this association many companies are investing heavily in analytics to evaluate just how effective their customer service strategies are
As has been mentioned in the introduction, the four tactics that comprise this strategy include providing a dedicated and exclusive customer service manager to the largest accounts due to their complex, often urgent, and difficult-to-solve problems and requests; the use of value-added promotions and coupons including added services that by themselves would be only marginally successful yet when bundled with other tactics appears to be working; the utilization of
From a performance analysis perspective, costs of alternative support channels are first evaluated, followed by the key performance indicators (KPIs) typically used in financial services organizations to measure the performance of their online initiatives, most notably, websites. Following this discussion of performance analysis there is an analysis of resource availability and allocation of resources. Performance Analysis From a cost-per-incident analysis, the following table presents findings from Forrester Research specifically in measuring
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