Semester Spring 2012
Customer Relationship Management (Mkt610)
Assignment No. 2
Due Date: 25
th
June, 2012 Marks: 25
Topic: Market segmentation
Learning Objectives:
• To recognize the concept of segmentation while appreciating the strategic
options available to firms for approaching different categories of customers.
• To apply the concept of segmentation to different industries
Rationale:
Mass marketing is an approach wherein the manufacturer engages in mass production,
mass distribution, and mass promotion of one standardized product aimed for all sorts of
customers. This leads to lower costs, lower prices and higher margins. Nowadays,
however, as customers are getting to know about their varied and different needs they
want to be treated differently too and thus require customized solutions with something
changed from the rest of the crowd. In response to such customer demands companies are
using market segmentation and customized marketing to approach a heterogeneous
market. In market segmentation approach firms provide product options that meet the
needs of a defined group. In customized marketing approach each individual customer
receives personalized treatment.
Discussion Question:
The basic logic behind market segmentation is that not all buyers are alike. Keeping the
logic of segmentation in view describe how following would segment the market by
choosing from any of the three approaches of segmentation like unsegmented mass
marketing, market segmentation, customized marketing. Give appropriate reasons to
substantiate your answer.
1. Paper clips manufacturer
2. Salt manufacturer
3. Architect
4. Airline industry
5. Automobile manufacturer
6. Lawyer
7. Fast food
8. Designer clothes’ wear
docsity.com
