Global Market Segmentation
16.1 Explain global market segmentation.
Market segmentation is the process of dividing the firm’s total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group. Within each market segment, customers exhibit similar characteristics, including income level, lifestyle, demographic profile, and desired product benefits. Take earthmoving equipment as an example. Caterpillar develops distinct marketing approaches for several major market segments—farmers, construction firms, the military, and others. In setting prices, Caterpillar creates value-priced tractors for farmers, moderately priced earthmoving equipment for construction firms, and high-priced, ...
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