1. Market Segmentation

2. Market Segemtation – placing prostive buyers into groups that have: 1.common needs 2.will respond similarly to a marketing action Product Differentiation – using different marketing mix activities to help consumers perceive the products as being different/better than the competition

3. Primary vs. Secondary Target Markets Primary – markets segments that matches all the marketing activities of a product Secondary – market segments that matches some of the marketing activates of the product

4. Market Product Grid framework to relate the market segments of potential buyers to products offered or potential marketing activities by the firm

5. Example

6. Examples of Market Segmentation magazines will use different covers based on region Different styles of shoes target different types of users

7. New Trends Customer Relationship Management (CMR) – used to satisfy each customers’ unique needs and wants –next step a beyond Build to Order

8. CMR vs. Synergies Synergy – increased customer value achieved through performing organizational functions more efficiently