Rediscovering Market Segmentation
What is your main take away from the article?
The concept of the case is based on the non-demographic segmentation, by which he meant the classification of consumers according to criteria other than age, residence, income, and such. In order to serve as a basis for marketing strategy the predictive power of marketing studies based on demographics was no longer strong enough . There are other factors for example buying patterns had become far better guides to consumers' future purchases. Effectively incorporated non-demographic segmentations could serve companies determine which products to develop, which distribution channels to sell them in, how much to charge for them, and how to advertise them. But more than 40 years later, non-demographic segmentation has become just as unenlightening as demographic segmentation had been. This technique of using non demographic segmentation is giving a new dimension to the advertising world . Though demographic characteristics have been used for a long time to identify potential customer but its not as effective as the non-demographic factors to identify buying patterns. Thus they give corporate decision makers very little idea of how to keep customers or capture new ones. In the article we came to know about the "gravity of decision spectrum", a tool that focuses on the form of consumer behavior that should be of the greatest interest to marketers--the importance that consumers place on a product or product category.
What do you most agree/disagree with the author(s)?
The article focused on how the non-demographic segmentation strategy could serve the today’s business world more effectively than non demographic segmentation. It shows that customers buying patterns are changing day by day and to track these changes we need to come up with an unique method of segmentation. I agree with the fact that we should concentrate more on the non-demographic characteristics of target customers to get full understanding of
The concept of the case is based on the non-demographic segmentation, by which he meant the classification of consumers according to criteria other than age, residence, income, and such. In order to serve as a basis for marketing strategy the predictive power of marketing studies based on demographics was no longer strong enough . There are other factors for example buying patterns had become far better guides to consumers' future purchases. Effectively incorporated non-demographic segmentations could serve companies determine which products to develop, which distribution channels to sell them in, how much to charge for them, and how to advertise them. But more than 40 years later, non-demographic segmentation has become just as unenlightening as demographic segmentation had been. This technique of using non demographic segmentation is giving a new dimension to the advertising world . Though demographic characteristics have been used for a long time to identify potential customer but its not as effective as the non-demographic factors to identify buying patterns. Thus they give corporate decision makers very little idea of how to keep customers or capture new ones. In the article we came to know about the "gravity of decision spectrum", a tool that focuses on the form of consumer behavior that should be of the greatest interest to marketers--the importance that consumers place on a product or product category.
What do you most agree/disagree with the author(s)?
The article focused on how the non-demographic segmentation strategy could serve the today’s business world more effectively than non demographic segmentation. It shows that customers buying patterns are changing day by day and to track these changes we need to come up with an unique method of segmentation. I agree with the fact that we should concentrate more on the non-demographic characteristics of target customers to get full understanding of