Identifying Market Segments and Selecting Targets

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter presents a usage-based approach to segmentation and targeting. The authors prioritize this approach to alternative approaches for two reasons. First, the segments that are identified using this approach require distinct marketing strategies, not simply different marketing tactics. When current customers are targeted, the goal is to retain these customers and, if possible, expand their usage. When competitors' customers are targeted, the goal is to offer a proposition that is sufficiently attractive to overcome switching costs. And, when non-users are targeted, the reasons for abstaining from category consumption must be addressed. Second, the usage-based approach focuses on the costs and potential return associated with pursuing alternative targets.
Original languageEnglish (US)
Title of host publicationKellogg on Marketing
EditorsAlice M. Tybout, B.J. Calder
Place of PublicationHoboken, NJ
PublisherJohn Wiley & Sons
Pages26-55
Number of pages29
Edition2nd
DOIs
StatePublished - 2010

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Tybout, A. M., & Grayson, K. A. (2010). Identifying Market Segments and Selecting Targets. In A. M. Tybout, & B. J. Calder (Eds.), Kellogg on Marketing (2nd ed., pp. 26-55). John Wiley & Sons. https://doi.org/10.1002/9781119199892