Blog Post 3, Module 3: Segmentation
During week three of
my MBA class, Business Perspectives 501A, we focused on marketing fundamentals. We learned of the four Ps in marketing: Product,
Price, Place, and Promotion. We defined
product as a good, a service, or both.
This includes the design, quality, branding, and packaging. The price is what the customer pays for the
product. This is not as straightforward as
I imagined; it also includes the perceived value. A place is where you go to obtain a good or
service. Finally, promotion was defined
as the communication of the good through marketing. (
We also learned the
significance of market segmentation. According
to the article, Modern Customer Segmentation in the Wall Street Journal, “marketers
have the power to make much more dynamic segmentation decisions, fine-tuning
their tactics with greater precision in near real-time” with integration
of AI (
1.
Identify
strategic gaps to align with current business goals.
2.
Combine
quantitative and qualitative data to validate customer hypotheses.
3.
Utilize
data science tools to identify valuable customer segments.
4.
Add
context to understand motivations.
5.
Activate
segments and adjust based on AI.
AI is being harnessed
to apply real-time feedback with precision to segment into precise marketing
groups. “Gone are the days of siloed
data scientists. Now, modern technologies can help marketers quickly test and
refine their hypotheses. Using machine learning and AI, marketers can
interrogate customer data to discover patterns and nuances much faster and with
greater precision than humans”(
Although I do not have any marketing experience, I can say that I
have had much experience as a consumer. We
learned in lecture about the customer-oriented company focusing on customer
orientation (decisions based on a deep understanding of customer preferences). Rather
than just selling a good, the company understands what the consumer needs. The customer-oriented company embraces
empowered customers (the customer is knowledgeable of the product). Lastly, there is value to all stakeholders (beyond
the customer and company, extending to the environment and society). (
An example that comes to mind when I think of a customer-oriented
company is Starbucks. Starbucks is highly customer-focused, creating an
engaging experience centered around coffee. They possess a deep understanding
of their clients through segmentation. They have loyalty rewards, offer customization
of their product, and various ways to easily obtain their product for the
customer. Their customers are empowered;
they know their coffee preferences and place their orders through mobile apps.
Finally, Starbucks focuses on value for all stakeholders. They provide
rewarding employment benefits. According
to a journal post from the Wall Street Journal, Starbucks Chief Executive,
Brian Nicocol, “seeks to boost sales by focusing on coffee offerings and café hospitality,
while trying to improve service” (
Haddon, H. (2025, June 11). Howard Schultz backs
tarbucks ceo rian niccol's turnaround approach. Wall Street Journal.
Retrieved June 16, 2025, from https://www.wsj.com/business/hospitality/howard-schultz-backs-starbucks-ceo-brian-niccols-turnaround-approach-1b5ffe0a?gaa_at=eafs&gaa_n=ASWzDAiB3_M4P4K3PaDe-o-RNQEDPttCGR9tqWIAjXVMK-1yNiZ3RfMvtbwRg8C2U5Q%3D&gaa_ts=6850d2eb&gaa_sig=HUxHdY4zbIDEbPC_qj0QKLxj4oEtcRsexkrsRD1TTywfAb4Rye7s30GI0J1NISOVDl_SAJsfd_9kAOmD1jrWLA%3D%3D
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