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1. The segmentation is a process that can be managed adopting different perspectives and methodologies. Please describe the main perspective and methodologies highlighting pros and cons.
Segmentation is identification of portions of the market that are different from the other. Segmentation allows the firm to better satisfy the needs of its potential customers. Creative market segmentation strategies often afford the business organization a strategic advantage over its competition. Foreign firms ...view middle of the document...
This grouping may be the result of company tradition, recognized industrial groups, or some other external or internal criteria.
Post hoc segmentation is empirically derived based on the results of a research study undertaken for specific purpose of segmenting a market. Segments generated from such a study are formed by aggregating buyers who respond similarly to a set or sets of questions.
The initial market segmentation research to first form post hoc market segments is usually called baseline segmentation study. A baseline post hoc segmentation study will usually include a large number of non-basis variables, called descriptive variables. These descriptive variables are used to further describe and help delineate the segments that are derived from the basis variables.
2. How you would suggest sizing a really new product like a smart watch?
Market size is one of the several key factors used in identifying an audience to target with your products or services. First of all we need to conduct a research in watch market. This includes looking at the buying habits and values of consumers, as well as performance and perception of competing brands. All of these factors funnel into the market size for our smart watch. To determine target market, we must study who buys watches and who would be willing to buy and advanced smart watch. We can do this by asking ourselves the benefits our watch offers our target customers, what is the age or background of people who are interested in our product. Then we must estimate the amount of market share, or percentage of total market sales our smart watch can potentially gain. Research our competitors extensively, including pricing strategies, product or service offerings and market positioning. It would be also very beneficial to check on how fast or slow our market is growing. We can also conduct a focus group a survey.
3. What is customer retention, and how such marketing metric can affect financial and strategic performances of a firm?
Customer retention refers to keeping client’s business rather than have the client use competitors’ services or products. Businesses want to reduce customer defections to their competitors because a reduction in their market share and profits could result. Customer service retention is a popular marketing strategy as it involves focusing on meeting or exceeding client’s expectations in order to maintain their loyalty.
When people feel loyal to a certain brand or business, they’re less likely to be persuaded by competitors’ ads and offers. Maintaining customer retention through loyalty programs is a method commonly used by many businesses today. A loyalty...