E-Marketing4/EJudyStrauss,AdelI.El-Ansary,and RaymondFrostChapter8:Segmentation&TargetingStrategies1000007001070100111101000010010111010010C2006PrenticeHallnO
©2006 Prentice Hall 8-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 8: Segmentation & Targeting Strategies
Chapter 8 ObjectivesAfterreadingChapter8youwillbeableto..Outline the characteristicsof the three majormarketsfore-business·Explain whyandhow e-marketers use marketsegmentation to reach online customers.Listthemostcommonlyusedmarketsegmentation bases and variables.Outline five types of usage segments and theircharacteristics.Describethefourcoveragestrategiesemarketers can use totarget online customers07001070200111010000100101110100102006PrenticeHa
©2006 Prentice Hall 8-2 Chapter 8 Objectives • After reading Chapter 8 you will be able to: • Outline the characteristics of the three major markets for e-business. • Explain why and how e-marketers use market segmentation to reach online customers. • List the most commonly used market segmentation bases and variables. • Outline five types of usage segments and their characteristics. • Describe the four coverage strategies emarketers can use to target online customers
1-800-Flowers·Utilized data mining software to identifycustomer segments for better targeting·Asa result of segmentation andtargetingstrategies,customer retention increased by15%andsalesby13.8%in2003Web siteattracted13.1millionnewcustomers and the repeat orderrateincreasedto43%Whydoyouthinkbettersegmentationandtargeting lead to reduced phone time andlower costs?0070101001111010000100101110100102006Prenticeh
©2006 Prentice Hall 8-3 • Utilized data mining software to identify customer segments for better targeting. • As a result of segmentation and targeting strategies, customer retention increased by 15% and sales by 13.8% in 2003. • Web site attracted 13.1 million new customers and the repeat order rate increased to 43%. • Why do you think better segmentation and targeting lead to reduced phone time and lower costs? 1-800-Flowers
Segmentation & Targeting OverviewMarketingsegmentationistheprocessofgrouping individuals orbusinesses,accordingtouse,consumption orbenefits ofaproduct orserviceTargetingistheprocessof selectingmarketsegments that are mostattractiveto the firm700707010011101000010010111010010C2006PrenticeHal
©2006 Prentice Hall 8-4 Segmentation & Targeting Overview • Marketing segmentation is the process of grouping individuals or businesses, according to use, consumption or benefits of a product or service. • Targeting is the process of selecting market segments that are most attractive to the firm
Three Basic MarketsBusinessMarketGovernmentMarketConsumerMarket1000007001010000111101000010010111010010C2006PrenticeHall0000
©2006 Prentice Hall 8-5 Three Basic Markets • Business Market • Government Market • Consumer Market