Module 4 Essay Questions

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School

Johns Hopkins University *

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Course

660450

Subject

Marketing

Date

Apr 3, 2024

Type

docx

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1

Uploaded by AdmiralMoonKudu26

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Q1. Why market segmentation is one of the most critical issues in marketing management? As discussed in course material this week, Market Segmentation simply groups customers into segments based on demographics, location, behaviors, and psychological traits. We know that over 90% of new products in the US and Europe fail due to incorrect positioning, which is simply segmentation and differentiation. This is why segmentation is extremely important in marketing, as it enables companies to determine their target customers and how to market their products best (Tarver, 2024). Leask (2023) stated that market segmentation is important because all customers have unique needs. Therefore, a one-size-fits-all approach would not be very productive. Market segmentation also allows companies to focus on their customers instead of wasting resources on reaching the entire market. Market segmentation also forces companies to be intentional about their messaging and branding, resulting in better advertising campaigns and greater customer brand loyalty (Tarver, 2024). Q2. How organizations segment their markets? There are practical steps that organizations can take to segment their markets. According to Market Research Solutions (2024), the five ways to segment markets are demographic, psychographic, behavioral, geographic, and firmographic segmentation. The first step in effective market segmentation is to analyze existing customers to understand customer behaviors, primarily using a CRM system. (Leask, 2023). Understanding customer behaviors and needs then allows organizations to determine their target customer groups and create brand positioning (Leask, 2023). References Tarver, E. (2024). Market Segmentation: Definition, Example, Types, Benefits. Retrieved February 2024, from https://www.investopedia.com/terms/m/marketsegmentation.asp#:~:text=Why%20Is %20Market%20Segmentation%20Important,purchasing%20power%2C%20or %20consumer%20needs . Leask, K. (2023). What is market segmentation and why is it so important? Retrieved February 2024, from https://useinsider.com/what-is-marketing-segmentation/ Market Research Solutions. (2024). What is Market Segmentation? Retrieved February 2024, from https://www.surveymonkey.com/market-research/resources/market-segmentation/ #:~:text=There%20are%20many%20ways%20to,%2C%20geographic%2C%20and %20firmographic%20segmentation .
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