Market Data Analysis Using JMP

The Role and Importance of Segmentation

Everyone in marketing is familiar with the four Ps of marketing, also referred to as the marketing mix: Product, Price, Place, and Promotion. See McCarthy and Perreault (1987) for a discussion summarized in Figure 7.1 Classical Marketing Mix.

Figure 7.1 Classical Marketing Mix

These four Ps are tactical marketing tools used to gain or maintain a position in the market relative to the competition. Many marketing managers believe the marketing mix is the main focus of marketing efforts. They are, however, actually part of a larger strategic process that involves segmenting the market, identifying targets ...