Describe the bases for segmenting business markets

Describe the characteristics of markets and market segments
A market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of

individuals or organizations with similar product needs as a result of one or more common characteristics.

Explain the importance of market segmentation
Before the 1960s, few businesses targeted specific market segments. Today, segmentation is a crucial marketing strategy for nearly all successful organizations. Market

segmentation enables marketers to tailor marketing mixes to meet the needs of particular population segments. Segmentation helps marketers identify consumer needs and

preferences, areas of declining demand, and new marketing opportunities.

Discuss criteria for successful market segmentation
Successful market segmentation depends on four basic criteria: 1) a market segment must be substantial and have enough potential customers to be viable, 2) a market

segment must be identifiable and measurable, 3) members of a market segment must be accessible to marketing efforts, and 4) a market segment must respond to particular

marketing efforts in a way that distinguishes it from other segments.

Describe the bases commonly used to segment consumer markets
Five bases are commonly used for segmenting consumer markets. Geographic segmentation is based on region, size, density, and climate characteristics. Demographic

segmentation is based on age, gender, income level, ethnicity, and family life cycle characteristics. Psychographic segmentation includes personality, motives, and

lifestyle characteristics. Benefits sought is a type of segmentation that identifies customers according to the benefits they seek in a product. Finally, usage

segmentation divides a market by the amount of product purchased or consumed.

Describe the bases for segmenting business markets
Business markets can be segmented on two general bases. First, businesses segment markets based on company characteristics, such as customers geographic location,

type of company, company size, and product use. Second, companies may segment customers based on the buying processes those customers use.

Need a Professional Writer to Work on this Paper and Give you Original Paper? CLICK HERE TO GET THIS PAPER WRITTEN

List the steps involved in segmenting markets
Six steps are involved when segmenting markets: 1) selecting a market or product category for study; 2) choosing a basis or bases for segmenting the market; 3)

selecting segmentation descriptors; 4) profiling and evaluating segments; 5) selecting target markets; and 6) designing, implementing, and maintaining appropriate

marketing mixes.

Discuss alternative strategies for selecting target markets
Marketers select target markets using three different strategies: undifferentiated targeting, concentrated targeting, and multi-segment targeting. An undifferentiated

targeting strategy assumes that all members of a market have similar needs that can be met with a single marketing mix. A concentrated targeting strategy focuses all

marketing efforts on a single market segment. Multi-segment targeting is a strategy that uses two or more marketing mixes to target two or more market segments.

Explain how CRM can be used as a targeting tool
Companies that successfully implement CRM tend to customize the goods and services offered to their customers based on data generated through interactions between

carefully defined groups of customers and the company. CRM relies on four things to be successful: personalization, time savings, loyalty, and technology. Although

mass marketing will probably continue to be used, the advantage of CRM cannot be ignored.
Explain how and why firms implement positioning strategies and how product differentiation plays a role
Positioning is used to influence consumer perceptions of a particular brand, product line, or organization in relation to competitors. The term position refers to the

place that the offering occupies in consumers minds. To establish a unique position, many firms use product differentiation, emphasizing the real or perceived

differences between competing offerings. Products may be differentiated on the basis of attribute, price and quality, use or application, product user, product class,