Serious Business Between Class 2 and 3

To Do Between Classes

To expand your research into specifics about Market Segments.

Goal: To develop, quantify and write a profile of each Market Segments that your business addresses by the next scheduled class.

Homework -- Essentials of Accounting

Read Part 3 in Essentials of Accounting. Do the review at the end of the chapter.Bear Paw

Key Ideas

Objectives to achieve prior to Class 3

  • To establish parameters, write a profile of the market segment of that could be candidates for pool construction and determine the number of homes in this segment by 11-29-05.
  • To establish parameters, write a profile of the market segment of homeowners that could be candidates for pool renovation and determine the number of homes in this segment by 11-29-05.
  • To establish parameters, write a profile of the market segment of homeowners that could be candidates for pool maintenance and determine the number of homes in this segment by 11-29-05.

Strategies to employ to reach these objectives

  • Utilize reverse engineering on current customers in each segment to determine their parameters.
  • Select geography that's appropriate for each segment using US Census Data.
  • Determine the number of similar potential homeowners that are in the selected geography using direct mail counts.

Action plans using these strategies to reach these objectives

  • Select 10 typical or largest or most profitable companies that are currently customers in each preliminary segment. Have selection completed by ________.
  • Find the classifications of each current customer in one or both of the list sources. [note: you may have to purchase a small amount of specific data from the source to get the information you need] Have classifications completed by ________.
  • Compile the data from the specific customers in each of the 3 segments. Decide if there are really 3 or just one set of selection criteria. Have summary done by _______.
  • Use the count functions in the two on-line sources to develop a table of potential customers. The table should have columns of each market segment and geographic divisions as the rows. The data should have the number of potential customers in each geographic element by market segment. Total both geography and market segments. Complete the table by November 29th.

Market Segmentation

  • The division of a market into different homogeneous groups of consumers is known as market segmentation. Market Segmentation has some specific tests. A market segment should be:
    • measurable
    • accessible by communication and distribution channels
    • different in its response to a marketing mix
    • durable (not changing too quickly)
    • substantial enough to be profitable

    Here's a link that will explain more about segmentation. Read More >>...

  • Specific Market Research Sources