Jeffery Whippo on How a Business Unit May Choose the Criteria for Segmenting the Market

Jeffery Whippo on How a Business Unit May Choose the Criteria for Segmenting the Market

Jeffery Whippo Talks about the Act of Market Segmentation Jeffery Whippo, a professional educator and business leader states that the act of market segmentation depends on the nature of the market or industry in which the business is operating in. He feels that the criteria for segmenting the market within the consumer goods space could include – Simple demographic and socioeconomic variables Psychological factors like lifestyle or personality traits Consumption patterns Brand loyalty patterns Geographical factors Perceptual factors and more

Additional Criteria for Segmentation within the Industrial Market •

According to Jeffery Whippo, segmentation within the industrial market is accomplished by forming end use segments, geographic segments, common buying factor segments, and segments based on customer size. • Additionally, he feels that creative analysts may be able to identify additional criteria, which could include breaking the market down into variable sizes, including product performance criteria, or including criteria based on lifestyle analysis of consumers.

Effective Market Segmentation Involves Choosing One or More Variables to Divide the Market in a Certain Way  Jeff Whippo emphasizes that the key to performing market segmentation is to choose one or more variables that divide the market so that customers in a segment respond similarly to some aspect of the firm’s marketing strategy.  He further states that market segmentation can also be done by the level of customer service, stage of production, price/performance characteristics, location of plants, characteristics of manufacturing equipment, channels of distribution, financial policies, and credit arrangements with customers.

Choosing Criterion for Segmentation, According To Jeff Whippo Follows the Process Of – • • • •

Identifying potential customers and the nature of their needs Segmenting all customers into groups that have common requirements or the same value systems Determining the most efficient means of serving each market segment Adjusting the ideal system to the constraints of the real world

Thank You Jeffery Whippo