Customer Relationship Management, 1st Edition by Pearson

11

Segmentation and selections

Segmentation is the dividing up of customers into various, distinct homogeneous groups for whom it can be desirable to approach in a specific way. Those within the group react in the same manner to marketing stimuli provided by the supplier. Customers within a segment have communication or purchasing behaviour and/or needs and wants in common. Differences exist between the groups.

In this chapter, we will first discuss the strategic aspects of segmentation (Section 11.1). We will then look briefly at how we can divide the market into segments, how we can describe the customers in the segments, and how the research outcomes may be used in the strategic marketing policy. Segmenting not only has strategic objectives ...