Market Development

Marketing can resemble a series of random and disconnected actions, but All marketing decisions
can be divided into two groups:
 Marketing strategy
 Tactics to implement this strategy

Marketing can be defined as the business function that creates value for the customer. Value can
differ from one customer to another, but We can identify four sources of value: functional,
monetary, social, and psychological

The key is to determine which source of value their customers are seeking in a particular transaction.
If you are mistaken in this determination, you may be wasting your marketing efforts.

To build the marketing strategy you should answer three questions

 Who are your customers
 What do they value
 How can you give them what they value better than the competition

How to segment a Market

Segmentation is simply the process of grouping similar people together.

 Principle of segmentation analysis:

 it should not be one time prospect as the market is fluid. It should be done periodically to
identify new opportunities or fix existing problems.
 The segments should be both collectively exhaustive and mutually exclusive. In other words
everyone in the market should be in a segment and each segment should be distinct not
overlap with any others
 The segment should be based on what people value first then on top of it the differences in
demographic characteristics such as age, gender, geography and so on.

 Approaches to Segmentation
 There are three approaches to conducting a segmentation analysis: user based, benefits
based, and occasion based. Each approach should lead to the same outcome

Targeting a Market Segment

 Selecting a single target Targeting is the process of deciding which customer segments you
will serve and which ones you will not. By trying to target all segment you would probably
miss both