MARKETING ISSUE – Determining the appropriate bases for segmentation.

C Companion Text Ch 5

B Basic Marketing Text Ch 4

The importance for understanding and determining the bases for segmentation of markets is much more key to success than most executives realize. All firms have to be practical and decide on which segments fit their objective and resources. How does your firm decide measureable, differentiable, accessible and substantial (sales and profitable wise) insures.

For Kimberly Clark in the Huggies category, quite a few years back, the segment had to be $50 million (nationally), we had to be able to get our investment back in 3 years, costs of product changes had to be in line with our current product lines, and we had to be able to come in the top 3 of market share in about 5 years. Bases of segmentation was done on 1) need, 2) product usage rates, and 3) geographical. Very large companies can segment based on multiple variables where small companies probably don’t have the resources to segment this extensively. This is okay. One level of segmentation is good enough if it fits a specific companies target markets.

It is important for you to recognize segments and their importance. Please identify segments based on an article and compare and contrast your firms approach to a segment or segmentation. In the C text (Companion), Chap 5, you will see 4 elements that identify a segment in more detail. In the B (Basic Marketing) text, exhibit 4-2 covers the same information. This is the information in detail that you will need to do segmentation very well.

In reference to an article, identify the bases of segmentation, and articulate if it can be done better or differently and still be effective. Please provide the details for describing the segment well that is in both text. Address this issue (10 pts). This is your posting using an article for support. Reply to another students posting AND ASK A QUESTION IN REGARD TO THEIR POSTING (5 pts).Additionally, respond to one of the questions you have been asked. Please restate the question at the beginning of your response so it is clear, what question you are answering (5 pts).

Please note, you will have a total of 3 communications for me to assess: your original posting (10 pts), a response to a student that includes a question (5 pts), and a response to a question you have been asked (5 pts). The requirements for posting and replies are in the syllabus.

Support your thoughts on the issue with reference to information found in the Wall Street Journal or other credible source. Use an appropriate reference.