Customer Segmentation – A Technique for Effective Marketing...

Customer Segmentation – A Technique for Effective Marketing Customer segmentation is also known as market segmentation. It is the practical division of potential customers in a given market into discrete groups. The division is based on customers having similar appearing needs and buying characteristics so that a common market approach can be used by an organization for the marketing of its products to them in a competitive and economical manner. Also when the organization plans for expansion, then executing a marketing strategy without any knowledge of how the target market is segmented is similar to firing shots at a target blindfolded. In such case the likelihood of hitting the target is a matter of luck more than anything else. Without a deep understanding of how best the current customers of the organization are segmented, the organization often lacks the market focus needed to allocate and spend its precious human and capital resources efficiently. Furthermore, a lack of best current customer segment focus can cause diffused go-to-market and product development strategies that hamper the ability of the organization to fully engage with its target segments. All of these factors when combine together, can ultimately obstruct the growth of the organization. All markets are heterogeneous and all the customers are not the same. The different customers have got different needs. Also customers’ behaviours towards a product vary based on their requirements as well as on the environment in which they are working. Hence marketing strategy of ‘one size that fits all’ does not work in present day situation. Therefore, effective marketing strategies requires a segmentation of the market into smaller and homogeneous customers’ segments, the understanding of needs and wants of these segments, the design of the products and services to meet these needs, and development of...

Marketing and Marketing Management...

Marketing and Marketing Management Marketing management is the management of the marketing activities in an organization and includes management of the processes of planning, organizing, directing, motivating, coordinating, and controlling. It is the process of satisfying the needs and wants of the customers of the organization. Marketing management is an important function of the organization since it brings the organization closer to its customers and consists of establishing a marketing orientated organization with the emphasis on the customer. It is a core component in the organization’s success. Definitions Marketing is a process by which an organization obtains what it needs and wants through creating and exchanging products and value with its customers. In simple words it is the delivery of customer satisfaction at a profit. It satisfies the needs of customers better than the competition. It focuses on the use of all the controllable influences to satisfy the customer. One of the shortest de?nition of marketing is ‘meeting needs pro?tably’. As a managerial definition, marketing has often been described as ‘the art of selling products’. Peter Drucker has defined marketing as ‘Marketing is so basic that it cannot be considered as separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view’. He has further said that ‘the aim of marketing is to make selling super?uous. The aim of marketing is to know and understand the customer so well that the product or service ?ts him and sells itself. Ideally, marketing should result in a customer who is ready to buy’. Marketing management is a business discipline which focuses on the practical application of marketing techniques and the management of an organization’s marketing resources and activities. Philip Kotler defines marketing as ‘Marketing...