Marketing Plans, 8th Edition

Chapter 3 THE CUSTOMER AND MARKET AUDIT PART 1: UNDERSTANDING MARKETS AND MARKET SEGMENTATION¹

SUMMARY

PART 1

1. A discussion of whom we sell to
2. The difference between consumers and customers
3. Why market share is important and why the term ‘market’ must be carefully defined
4. Pareto analysis (the 80/20 rule) and its implications
5. The market segmentation process is outlined. The steps are:
   1. – defining the market
   2. – market mapping
   3. – listing decision makers and their purchases
   4. – noting why these decision makers buy what they buy
   5. – combining like-minded decision makers into segments by means of cluster analysis
6. A quick market segmentation method is provided
7. Examples of market segmentation are provided
8. Exercises to turn the theory into actionable propositions

Part 2 (i.e. Chapter 4) focuses ...