Market Segmentation Case Study

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Part A
Market Segmentation
The concept of market segmentation was developed by Wendel Smith in 1956, “Market segmentation involves viewing a heterogeneous market as a number of smaller homogeneous markets in response to differing preferences, attributable to the desires of consumers for more precise satisfaction of their varying wants.” (Smith, 1956)
Later Wind described it as “one of the most fundamental concepts of modern marketing” (Wind, 1978)
Market segmentation is the process of dividing a broad market into groups of customers with similar needs. This allows us to target our marketing to this subsection and improve the likelihood of sending the right message to the right customer. Customers can be grouped into a number of segments:
• Geographic; …show more content…

It will analyse the personas or customers emotional response, needs, goals, motivations and pain points or gaps in service at each of these sections of the Customer experience.
Service design through the Service Blueprint, which is the precursor to Customer Journey Maps were first described by G. Lynn Shostack. As described in the issues with Service design including Intangibility, Inseparability, Variability. Shostack states “A service blueprint allows a company to explore all the issues inherent in creating or managing a service.” (Shostack, 1984). The benefits of the Customer Journey map are that they are more precise and a better communication tool than a textual description of the service delivery, and less open to misinterpretation. They also in addition to Customer Personas put the customer at the focus point of the design. The designers of the service are encouraged to take into account the customers feelings, emotions, needs in the design. Again it moves the team away from the comfort zone of solving a technical problem and to deliver customer …show more content…

With the difficulties in service marketing as compared to product marketing companies have sought to improve their relationship with customers and develop strong brands. (Palmer, 2014). The benefits of good customer relationships for the organisation are as follows:
• It is cheaper to retain existing customers than attract new, companies can boost their profit by 100% by preventing 5% more of customer churn (Reichheld & Sasser Jr.,

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