WHY SEGMENT MARKETS?
A. What Market Segmentation Means Definition • Aggregating prospective buyers into groups that • have common needs and • will respond similarly to a marketing action. market segments • Relatively homogeneous collection of prospective buyers. strategy of product differentiation • Using different marketing mixes to help gain competitive advantage with a specific segment. • Selling two or more products with different features targeted to different market segments. 1. Segmentation: Linking Needs to Actions Market segmentation stresses two things: • Grouping people or organizations according to similarity of needs and the benefits desired • Needs and benefits must be related to specific, tangible marketing actions • Segmentation is a means to an end • Does it lead to tangible marketing actions to increase sales and profitability? 2. How Reebok s Segmentation Strategy Developed As shown in Figure 9-2, Reebok introduced its Freestyle soft-leather aerobic dance shoe in 1982 and has subsequentl
