Marketing Segmentation (Byte Size)
It was Henry Ford who was described as both the world's best and the world's worst marketer. The design development and launch of the black Ford Model T was classic marketing. Henry Ford identified a need for an automobile that, whilst a luxury, should be affordable. The development of mass-production techniques to produce the car was a planned strategy to enable the Model T to be marketed at an affordable price for the mass market. Ford became the dominant car producer in a matter of years, in an apparently unassailable market position.
Whilst Henry Ford's entrepreneurial vision should be applauded, his subsequent product strategy misfired! Consumers could own a Ford T as long as they wanted it in black in the only available model. Whilst undoubtedly a quality car, the Model T did not meet all the needs of the market. Chevrolet recognised this opportunity and developed a product range that offered the consumer choice and the opportunity to upgrade the model. The identification of unmet market needs enabled Chevrolet to penetrate into and subsequently dominate the American automobile market. Chevrolet succeeded where Ford failed by analysing and segmenting its market and developing products that more closely met individual consumer needs.
The case history of the Model T offers us the opportunity to understand the importance of meeting consumer needs. More importantly, it introduces you to some of the marketing terminology that will be introduced in this course.
After participating in this course, you should be able to:
- identify the benefits to the marketer of segmenting the market
- identify the consumer demand category represented by a specific market
- select the most appropriate method of market segmentation in a specific case
- analyse the market segmentation strategy adopted by a specific organisation
- draft a market segmentation plan for a specific product
- identify market segments in an industrial context
- assess the attractiveness to the marketer of a specific market segment
- identify the targeting strategy being used by a specific marketer
- identify ways in which products have been
- differentiated and positioned in the minds of target customers