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					         Customer Segmentation
Definition
      • Customer segmentation is the analysis of customer
      needs to identify groups of buyers who are
      homogeneous in the way they discriminate among
      products and suppliers

Objective
    • To identify a profit and market share maximizing
    strategy for each need-based customer segment to
    minimize:

              - Oversatisfying some customer segment
              needs (excess financial cost)
              - Undersatisfying others (market share
              cost)
                Customer Segmentation
                       Business Definition


Costs                          Customers                         Competitors



   • Do all customers in the market have similar needs and
   requirements, or are there segments of customers whose
   requirements and behavior are distinct?
   • How is the firm’s offering perceived by each segment of
   customers?
   • How significant (size & profitability) is each of the segments?
   • What elements of the firm’s strategy and marketing mix would
   have to be adjusted to appropriately pursue each segment of
   customers?

                         Long Term Strategy
                 Customer Segmentation
                         How to Do It

• Planning

     - Hypothesize customer segments and selection
     criteria
     - Select analytic methods and design market survey
     - Select survey sample to include all hypothesized
     segments
     - Pretest survey with focus groups and individuals

• Data Gathering

     - Conduct survey and obtain customer scoring
                  Customer Segmentation
                           How to Do It

• Analysis

     - Group respondents with homogeneous needs into
     customer segments
     - Analyze customer perceptions of firm’s product vs.
     customer needs for each segment
     - Evaluate whether the firm is:
             •Oversatisfying some needs
             •Undersatisfying others

     -Analyze customer perceptions of firm’s
     products/services versus competitor’s offerings for
     each customer (needs-based) segment

				
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posted:2/28/2012
language:English
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