Copyright Goodheart-Willcox Co., Inc. Chapter 5 Satisfying the Fashion Market 85
Think Critically
Market Segmentation Techniques
Examine the market segmentation techniques in the following table. Then, complete the Review and Discuss activity below.
Terrifi Techniques Techniques That Fall Short fic
• The information helps answer common business questions
and indicate answers to problems.
• Companies can find important common threads among
people to whom they market.
• Differences can be highlighted between groups of
consumers.
• Groups are shown to be distinguishable in their behaviors,
shopping preferences, attitudes, etc.
• Recent marketing successes and failures of the business
can be evaluated.
• Current marketing opportunities are recognized for higher
business success.
• Brand strategy can be indicated as right and/or wrong for
different segments of a firm’s customers.
• Information from consumers might be more valuable while
they are looking to make a purchase than after they have
bought a product.
• Commonalities can be shown that spearheads innovation
for product development.
• Customer loyalty can be generated when current shoppers
are asked for their advice.
• It is good to discover growth opportunities that may not
have been previously recognized.
• High-value customers might be identified by how frequently
they shop, how much money they spend on purchases, if
they are in the company’s loyalty program, etc.
• New customers might be sought, with the same
parameters as the current best customers.
• Pertinent digital data might already be available from
website searches and social messaging.
• It might allow companies to customize messages to each
consumer.
• If done right, using common sense along with data
analytics, results in clear measures of success.
• Statistics are just data that require deciphering
into useful information for action.
• Segmentation information can help companies
think through the choices to make their own
decisions.
• Segmentation results stand still, without future
thinking for creative innovation in products and
customer services.
• Shifts in customers’ lifestyles are unanticipated
with segmentation—people have evolving wants
and needs plus often change their minds!
• Many consumers fall into multiple segments.
• The data is scientifically descriptive, often without
common sense added.
• Consumer behavior is becoming less predictable
with instant access to information.
• Segmentation is only one mechanism to help
show an ever-changing marketplace.
• The data originally sought does not always
end up providing the needed information—
unanswered questions develop.
• Future customers are not necessarily in the
current evaluation or results.
• Even with changes in response to market
segmentation and research, it is hard to lure in
new customers.
• Market research is expensive and adds to the costs
of doing business, beyond the regular expenses
and duties of running the company.
• “Syndicated data” (done by general market
researchers) or the use of in-house collection
technology is cheaper but less relevant to a
company’s specific target market.
• Organizations are resistant to change and
management often fails to act on the indicators.
Review and Discuss
Analyze the terrific techniques and discuss with classmates what makes each technique of value to retailers and sup-
pliers. Then, analyze the techniques that fall short in their value to retailers. How does understanding the differenceff t
between terrific techniques and techniques that fall short benefit t you in your future fashion-related profession? fi
Think Critically
Market Segmentation Techniques
Examine the market segmentation techniques in the following table. Then, complete the Review and Discuss activity below.
Terrifi Techniques Techniques That Fall Short fic
• The information helps answer common business questions
and indicate answers to problems.
• Companies can find important common threads among
people to whom they market.
• Differences can be highlighted between groups of
consumers.
• Groups are shown to be distinguishable in their behaviors,
shopping preferences, attitudes, etc.
• Recent marketing successes and failures of the business
can be evaluated.
• Current marketing opportunities are recognized for higher
business success.
• Brand strategy can be indicated as right and/or wrong for
different segments of a firm’s customers.
• Information from consumers might be more valuable while
they are looking to make a purchase than after they have
bought a product.
• Commonalities can be shown that spearheads innovation
for product development.
• Customer loyalty can be generated when current shoppers
are asked for their advice.
• It is good to discover growth opportunities that may not
have been previously recognized.
• High-value customers might be identified by how frequently
they shop, how much money they spend on purchases, if
they are in the company’s loyalty program, etc.
• New customers might be sought, with the same
parameters as the current best customers.
• Pertinent digital data might already be available from
website searches and social messaging.
• It might allow companies to customize messages to each
consumer.
• If done right, using common sense along with data
analytics, results in clear measures of success.
• Statistics are just data that require deciphering
into useful information for action.
• Segmentation information can help companies
think through the choices to make their own
decisions.
• Segmentation results stand still, without future
thinking for creative innovation in products and
customer services.
• Shifts in customers’ lifestyles are unanticipated
with segmentation—people have evolving wants
and needs plus often change their minds!
• Many consumers fall into multiple segments.
• The data is scientifically descriptive, often without
common sense added.
• Consumer behavior is becoming less predictable
with instant access to information.
• Segmentation is only one mechanism to help
show an ever-changing marketplace.
• The data originally sought does not always
end up providing the needed information—
unanswered questions develop.
• Future customers are not necessarily in the
current evaluation or results.
• Even with changes in response to market
segmentation and research, it is hard to lure in
new customers.
• Market research is expensive and adds to the costs
of doing business, beyond the regular expenses
and duties of running the company.
• “Syndicated data” (done by general market
researchers) or the use of in-house collection
technology is cheaper but less relevant to a
company’s specific target market.
• Organizations are resistant to change and
management often fails to act on the indicators.
Review and Discuss
Analyze the terrific techniques and discuss with classmates what makes each technique of value to retailers and sup-
pliers. Then, analyze the techniques that fall short in their value to retailers. How does understanding the differenceff t
between terrific techniques and techniques that fall short benefit t you in your future fashion-related profession? fi