How do organizations understand their customers? How do organizations define and segment markets?
Successful marketing comes from three different factors: the number of potential customers, the share of the customers that the company attains, and the purchase and consumptions rate. An increase in any of these is good and will boost sales. Usually companies focus on increasing the number of potential customers or the share of customers that they have. These obviously increase sales. However, there have been companies that have focused on increasing the purchase and consumption rate to grow their sales rates. This has been especially the case with large companies in stable markets that don’t have room to grow in the other areas. In the 50s, Gilette started to focus on increasing the consumption rate of their toothbrushes. It happened to work out that it is more sanitary to change your toothbrush more often. So when they publicized the fact that people should change their toothbrushes more often and included a device that lets the customers know when to change their toothbrush, the pu
