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Commercializing Great Products with Design for Six Sigma by David W. Bacon, Randy C. Perry

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Chapter 8. Market Segmentation

Market segmentation is among the first tools the DFSS product development team will use in preparing the marketing section of the business plan. Market Segmentation is a process of strategically grouping customers of similar characteristics and needs together with the goal of improving overall business profitability. Customers in the same market segment will place a similar value, measured by the price paid to purchase these items, on the benefits of purchased products and services.

The Financial Value of Market Segmentation

Suppose for a moment that our new CWF product introduced earlier can be sold in three different market segments. An initial assessment of the sales volume and sales price by market segment appears ...

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