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1, What is a “Customer Segment”? 2, Benefits of Segmentation 3, Segment Process 4, How to exploit a niche market

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  2. I ndex  1, What is a “Cust omer Segment ”?  2, Benefit s of Segment at ion  3, Segment Pr ocess  4, How t o exploit a niche mar ket
  3. 1, What is a “Cust omer Segment ” ? A customer segment r epr esents a gr oup of customer s based on their common char acter istics. I t may be cr eated based on the follow ing customer char acter istics (or attr ibutes):  Regist rat ion informat ion  Demogr aphic informat ion  Address informat ion  Cult ural infor mat ion  Pur chase hist or y  Account informat ion (for Business t o Business st or es only)  Ot her cust omer infor mat ion such as int er est s
  4. 2, Benefit s of Segment at ion Segmenting your customer s into gr oups accor ding to their needs has a number of advantages. I t can help you to:  ident ify your most and least profit able cust omer s  focus your mar ket ing on t he cust omer s who will be most likely t o buy your pr oduct s or ser vices  avoid t he mar ket s which will not be pr ofit able for you  build loyal relat ionships wit h cust omer s by developing and offer ing t hem t he pr oduct s and ser vices t hey want  impr ove cust omer ser vice  get ahead of t he compet it ion in specific par t s of t he mar ket
  5. 2, Benefit s of Segment at ion  use your resour ces wisely  ident ify new pr oduct s  impr ove pr oduct s t o meet cust omer needs  incr ease pr ofit pot ent ial by keeping cost s down, and in some ar eas enabling you t o char ge a higher pr ice for your pr oduct s and ser vices  gr oup your cust omer s by fact or s such as geographical locat ion, size and t ype of or ganisat ion, t ype and lifest yle of consumer s, at t it udes and behaviour
  6. 3, Segment at ion Pr ocess
  7. 4, H ow t o exploit a niche segment ? H ow to find a niche mar ket  I t is a good idea t o look mor e closely at your mar ket s, in order t o:  ident ify whet her t her e ar e any mar ket segment s t hat ar e not well cover ed at t he moment  t hink of ways in which you can offer pr oduct s or ser vices t o fit t he individual needs of t hese segment s
  8. 4, H ow t o exploit a niche segment ? H ow to exploit a niche mar k et  To maximise sales t o any niche mar kets you might have ident ified you should:  do your r esear ch t o find out if such a niche exist s and how it could best be ser ved  t r y t o find out as much as you can and develop exper t ise in the niche mar ket  Remember t hat going int o niche mar ket s can be a r isky business:  make a business case befor e you tr y to enter a niche mar ket  be on your guar d for r eact ion fr om compet it or s alr eady oper at ing in t he niche  monit or t he mar ket and be pr epar ed t o move to anot her niche
  9. The end
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