Podcast
Questions and Answers
What is market segmentation and why is it important for businesses?
What is market segmentation and why is it important for businesses?
Market segmentation is the process of dividing a market into groups of customers with similar needs, desires, and characteristics. It is important for businesses because it allows them to better understand and cater to the specific needs and preferences of different customer groups, ultimately leading to more effective marketing strategies and increased customer satisfaction.
Give an example of how Nike uses market segmentation to target specific customer groups.
Give an example of how Nike uses market segmentation to target specific customer groups.
Nike segments the athletic shoe market according to sport (running, basketball, football, soccer, and training) and gender (men’s shoes and women’s shoes). This allows them to create shoes that are tailored to the specific needs and preferences of each segment.
How do customers within market segments differ from customers in other segments?
How do customers within market segments differ from customers in other segments?
Customers within market segments are relatively homogenous, meaning they share similar needs and characteristics. However, they differ in important ways from customers in other segments of the market, highlighting the need for targeted marketing strategies.
