Market Segmentation and Customer Relationship Marketing Chapter Five M arket-Based Management, 4 th edition

5-2 Market Segmentation and Customer Relationship Marketing Chapter Five - Market Segments; Defined and Explained -Needs-Based Market Segmentation -Segment Strategies - Customer Relationship Marketing - Customer Relationship Management

5-3 Customer Needs and Market Segmentation What is a Market Segment? Why is Market Segmentation Important? How are Markets Segmented?

5-4 Business Needs and Market Segmentation

5-5 Needs-Based Market Segmentation

5-6 Needs-Based Segmentation and Segment Identification Why Should Segments be Identified?

5-7 Segment Attractiveness What Makes a Segment Attractive?

5-8 [ ( )] Segment Segment Rev Variable Cost Marketing Demand Share per Cust per Cust Expenses X X - - Segment Profitability NMC = Marketing ROS = NMC/Segment Sales Revenues Marketing ROI = NMC/Segment M&S Expenses NMC: Net Marketing Contribution M&S : Marketing and Sales

5-9 Segment Positioning How does positioning simplify promotional efforts? How does a firm determine if its segmentation strategy is meaningful? What is meant by Segment Strategy Acid Test? What is the importance of the marketing mix in the segmentation strategy?

5-10 Segmentation Strategies

5-11 Customer Relationship Marketing

5-12 Customer Relationship Management How does a firm justify the use of CRM? CRM vs. Needs-Based Market Segmentation 4 Critical Steps in Developing CRM Programs

5-13 Takeaways / Review Market Segmentation and Identification Key Steps in the Market Segmentation Process Segmentation Strategies Sub-segment Strategies Customer Relationship Marketing Customer Relationship Management

5-14 Marketing Performance Tools Profit Impact of Segment Strategy

5-15 Marketing Performance Tools Profit Impact of Customer Relationship Management