Market Segmentation and Customer Relationship Marketing

1
Market-Based Management, 4th edition

• Market Segmentation and Customer Relationship
  Marketing

Chapter Five
2
Market Segmentation and Customer Relationship
Marketing

• Chapter Five
• -Market Segments Defined and Explained
• -Needs-Based Market Segmentation
• - Customer Relationship Marketing
• - Customer Relationship Management

3
Customer Needs and Market Segmentation

• What is a Market Segment?
• Why is Market Segmentation Important?
• How are Markets Segmented?

4
Business Needs and Market Segmentation
5
Needs-Based Market Segmentation
6
Needs-Based Segmentation and Segment
Identification

• Why Should Segments be Identified?

7
Segment Attractiveness

• What Makes a Segment Attractive?

8
Segment Profitability
( )
Segment Segment Rev
Variable Cost Marketing
Demand Share per Cust
per Cust Expenses
X X
- -
NMC
ROS NMC/Segment Sales Revenues
ROI NMC/Segment MS Expenses
9
Segment Positioning

• How does positioning simplify promotional
  efforts?
• How does a firm determine if its segmentation
  strategy is meaningful?
• What is meant by Segment Strategy Acid Test?
• What is the importance of the marketing mix in
  the segmentation strategy?

10
Segmentation Strategies
11
Customer Relationship Marketing
12
Customer Relationship Management

• How does a firm justify the use of CRM?
• CRM vs. Needs-Based Market Segmentation
• 4 Critical Steps in Developing CRM Programs

13
Takeaways/Review

• Market Segmentation and Identification
• Key Steps in the Market Segmentation Process
• Segmentation Strategies
• Sub-segment Strategies
• Customer Relationship Marketing
• Customer Relationship Management

14
Marketing Performance Tools
Profit Impact of Segment Strategy
15
Marketing Performance Tools
Profit Impact of Customer Relationship Management