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Interactive Marketing Simulation: Managing Segments and Customers V2

What segmentation criteria does MM use to differentiate the segments?

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Are all segments equally attractive to MM? Why or why not?

Word limit for posts is 300 and 150 for responses

please comment two of your classmates’ descriptions in a meaningful way prior

1)

In the interactive marketing simulation, the segmentation criteria Minnesota Micromotors, Inc. (MM) uses to differentiate the segments is by different approaches. For segment A, Minnesota motors is using innovation with customization and priority in performance. In comparison to major segmentation variables this would come from more of a benefit sought from business markets and behavioral from consumer markets. For segment B, quality first with performance and willing to pay more for successful materials. In comparison to major segmentation variables this would come from more a psychographics from consumer markets and benefits sought for business markets. For segment C, high end feel is most important, with higher prices ensuring high performance. In comparison, this would fall under more of a demographics feel, to have high pricing, demographics of age and income comes important due to purchase value for this segment. I believe we as well can add psychographics cause with demographics being compared to income, psychographics of lifestyle fits hand in hand. Lastly for D, benefits sought for consumer markets and business markets. This would be due to economical pricing and best value to the market. In this case all markets have preference in the performance aspect, but each segment has a different view in how they attract and target the item to the market. One company uses an approach to target more of a high-end customer while another target’s a customer preferring a more cost -effective item while still maintaining quality. Each segment you can view as having a separate niche, by satisfying specific market needs as well as price ranges and production quality to impact its potential wants and needs. This unique exclusivity allows each segment to be viewed in a different light, which allows (MM) to choose its overall segments. The segmental choose (MM) needs is a top performing cost effective source.

2)

Hi All,

Minnesota Micromotors, Inc. (MM), is looking for a new marketing strategy that will use segmentation criteria to determine which outcomes will create the best results. There are 5 segmentation criteria to differentiate each segment. The large customers are labels as Segment A, Segment B, Segment C, and Segment D. There is also the Small Customer Segment. Segment A focuses on the competitive advantage by way of customization and performance of the product. Segment B branches off the quality of performance measuring whether or not the consumer is willing to pay more for the product. Next is Segment C. This Segment is based more off the high-end items and the necessity for performance importance that are measure by the higher priced products. Segment D is the breakdown of economical pricing for customers and the performance of the materials or products that have the best value and come in a higher volume. Not all segments are equally attractive to MM. In the case of Segment D, the company lost a multi-year deal due to extreme prices. A high-volume purchase at an increased rate did not attract the consumers use for the product. The benefit of product quality was not enough to maintain the product usage by a loyal customer. It is important that MM keep in mind that their market research, purchases, sales, etc. are all factors that can slightly be adjusted for better customer satisfaction. The satisfaction of the consumer’s wants and needs are able to be met by differentiating each market. With this differentiation, price ranges and products may vary to be more suitable for the consumer. It would be beneficial to MM to make use of Small Customer Segments due to the performance maintenance for materials and it being the most cost effective. This segment will open opportunity for better customer satisfaction and loyalty.

Regards,

Hillary

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