CHOOSING THE RIGHT

CUSTOMERMarket Segments

WHY ARE CUSTOMERS IMPORTANT?

“Your most unhappy customers are your greatest source of learning”-Bill Gates

KEY TERMS Mass Marketing: Using the same

marketing strategy to appeal to everyone

Market Segment: A group of individuals within a larger market that share one or more important characteristics

TYPES OF SEGMENTATION Geographic

Climate, urban vs. rural, population Demographic

Age, ethnicity, occupation, gender, income Psychographic

Moral values, attitudes, lifestyle choices

QUESTIONS TO ASK…When determining your market segments,

ask yourself…1. Is it identifiable? • Can your group be measured and studied?

2. Is it accessible?• Can you communicate with your segment?

3. Is it substantial?• Is your group large enough to make a

difference?

4. Is it unique?• Does the segment have distinct needs?

What is the difference between mass marketing and market segmentation?

What are three types of market segmentation?

What are four questions you should ask yourself?

FINDING THE CUSTOMERSSo, you’ve figured out who your best

customers would be (based on segmentation) but now you need to *find* those customers.

How do you find them?

INDUSTRY WAYS… Customer Data: Look at the information

you have on your current customers Industry Research: Trade groups collect

consumer data for their members Trade group is a ‘club’ for people in your

industry American Dental Association Bread Bakers Guild of America National Restaurant Association

Giveaways: Entice customers to give you their information in exchange for free stuff!

Outsourcing: Pay someone else to do it

Consider the four industry ways to find your customer data and answer the following questions.

1. Which is the most expensive? Why?2. Which is the easiest? Why?3. Which is the most helpful? Why?

MCDONALD'S

SOURCES What is Market Segmentation and How

Can It Increase Sales? Inuit Small Business Blog, July 12, 2013

Segmentation, Targeting, and Positioning – McDonald’sYouTube, March 6, 2013

TODAY’S ASSIGNMENT In the K-Drive, open the file ‘Choosing the

Right Customer’ and answer the questions.

Save: Choosing the Right Customer Last Name

Upload to Dropbox when complete