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Marketing calls for businesses to understand who buys wha

 

Marketing calls for businesses to understand who buys what, so let’s take a moment to consider market segmentation, the most basic concept involved in any discussion of marketing strategy and market structure. Market segmentation recognizes that in most product categories, buyers differ in

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whether they buy,

what they want most,

where and when they buy,

what information they want and how they want to receive it, and

what they’re willing to pay.

As a result, it is usually possible to break the population of potential buyers down into groups and to cater to the needs of those groups rather than choosing what we call “mass marketing” in which it is assumed that potential buyers are all alike in their needs and wants.

 

For some examples of market segmentation, check out a short piece by Neil Kokemuller in theHouston Chronicle: http://smallbusiness.chron.com/examples-market-segmentation-14403.html

 

Of course, simply recognizing, e.g., that urban and rural shoe buyers might differ in some of these respects may not be enough basis for designing a strategy for a shoe company.

 

Consider the material in a study guidedevoted to this subject:http://www.segmentationstudyguide.com/understanding-market-segmentation/criteria-for-effective-market-segmentation/

 

Based on these two references,

 

Which one or two segmentation variables do you believe would be most appropriately used in designing the strategy for marketing a line of automobile tires?

 

Explain.

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