I commend you for your clear and concise explanations. Your use of visuals is also on point. Currently doing a project on marketing mix and STP and the little graphics with your explanation make it easy to look for certain things while researching an offering.
Really happy to hear that. To be honest, I have read so many textbooks where they tend to make things overly confusing. Glad I was able to simplify. Good luck in your studies. -S.
In my opinion, Kotler and his approach to segmentation should be banned from being taught at all, because his approach is incorrect and has already ruined hundreds of companies. Market segmentation in this form is based on the assumption that somewhere there is an "objective" market and it is as static as a pie and therefore it can be cut into pieces based on some criteria. But there are a lot of problems with this approach: 1. First of all you have to define what the market is, and as most people can see 99.9% of the books on marketing avoid this step like fire! 2. The market is defined primarily by the needs of people and their preferences in means for satisfying those needs (products). 3. People's needs are formed by certain life situations and contextual factors (for example I would not pay more than $1 for water in a supermarket, but I would pay at least $100,000 for water in the desert, dying of thirst). And these situations and needs do change! It follows that all of the assumptions on which his "segmentation" approach is based are fundamentally wrong. 1. In order to define a market, you first have to know how people define it. But the market cannot be defined "in advance" on the basis of product categories or rational analysis, because today a person uses his cassette recorder to listen to music and tomorrow he will use his cell phone to do so. 2. The market cannot be static because people's needs are constantly changing. 3. Depending on the situation/context, the market will be defined by different products, needs and attributes. Therefore, the markets should not be "segmented" from top to bottom, but "synthesized" from bottom to top. At first the people with certain needs are asked in which situations they use which products, on the basis of these answers "several" markets are defined (George S. Day's approach, among others). And then within these markets you can look at the differences in attributes between people, their sensitivity to price, quality level, etc.
Thank you so much for your thoughtful reply. And I agree that segmentation is a tricky one because we do base some of our outcomes on assumption. However, on the flip side in marketing it's best not to throw paint to the wall and hope ot sticks. As a simple example, if I want to start a dog walking company and i live in the city. I might segment and target those people living in condos without backyards, possibly split my targeting to Gen Y on the one hand and baby boomers on another. The messaging will be different as will the vehicle for that messaging. ...Just food for thought.
Please share in the comments section below your marketing thoughts, observations, or topic ideas. I would love to hear from you!!! 👍🎬😉
Thanks.
Loved the way u have cleared
nc🙂
I commend you for your clear and concise explanations. Your use of visuals is also on point. Currently doing a project on marketing mix and STP and the little graphics with your explanation make it easy to look for certain things while researching an offering.
Really happy to hear that. To be honest, I have read so many textbooks where they tend to make things overly confusing. Glad I was able to simplify. Good luck in your studies. -S.
In my opinion, Kotler and his approach to segmentation should be banned from being taught at all, because his approach is incorrect and has already ruined hundreds of companies.
Market segmentation in this form is based on the assumption that somewhere there is an "objective" market and it is as static as a pie and therefore it can be cut into pieces based on some criteria.
But there are a lot of problems with this approach:
1. First of all you have to define what the market is, and as most people can see 99.9% of the books on marketing avoid this step like fire!
2. The market is defined primarily by the needs of people and their preferences in means for satisfying those needs (products).
3. People's needs are formed by certain life situations and contextual factors (for example I would not pay more than $1 for water in a supermarket, but I would pay at least $100,000 for water in the desert, dying of thirst). And these situations and needs do change!
It follows that all of the assumptions on which his "segmentation" approach is based are fundamentally wrong.
1. In order to define a market, you first have to know how people define it. But the market cannot be defined "in advance" on the basis of product categories or rational analysis, because today a person uses his cassette recorder to listen to music and tomorrow he will use his cell phone to do so.
2. The market cannot be static because people's needs are constantly changing.
3. Depending on the situation/context, the market will be defined by different products, needs and attributes.
Therefore, the markets should not be "segmented" from top to bottom, but "synthesized" from bottom to top.
At first the people with certain needs are asked in which situations they use which products, on the basis of these answers "several" markets are defined (George S. Day's approach, among others). And then within these markets you can look at the differences in attributes between people, their sensitivity to price, quality level, etc.
Thank you so much for your thoughtful reply. And I agree that segmentation is a tricky one because we do base some of our outcomes on assumption. However, on the flip side in marketing it's best not to throw paint to the wall and hope ot sticks. As a simple example, if I want to start a dog walking company and i live in the city. I might segment and target those people living in condos without backyards, possibly split my targeting to Gen Y on the one hand and baby boomers on another. The messaging will be different as will the vehicle for that messaging. ...Just food for thought.