chapter 5 - class notes feb 15th Flashcards
- is a group of customers who share a SIMILAR SET OF
NEEDS AND WANTS within an overall market
market segment
- is the process of identifying and categorizing the overall
market into groups of customers with similar needs and
wants (Market Segments)
market segmentation
- is the qualified available market segment which the
company decides to pursue
target market
what are these benefits :
- Avoid head-on competition with other firms trying to
capture the same customer segments. - Develop new offerings and expand profitable brands and
products lines. - Remarket older, less-profitable products and brands.
- Identify early adopters.
- Redistribute money and sales efforts to focus on your most
profitable customers. - Retain “at-risk” customers in danger of defecting to your
competitors.
benefits of segmenting markets
the process of grouping customers according to their behaviour when making purchasing decisions.
- attitude
- loyalty status
- buyer readiness
- occasions
- benefits
- user status
- usage rate
behavioural segmentation
How consumers describe themselves:
- Self-values
- Self-concept
- Lifestyles
psychographic segmentation
- Divide market into separate geographic units
- Countries, regions, provinces, cities, neighbourhoods, climate, etc.
- Develop appropriate marketing programs
geographic segementation
Most common method
Divide market into groups based on:
– gender
– age
– ethnic group
– family lifecycle stage
– household type
– income
– Other, e.g. occupation, education, religion
demographic segmentation
- It is Identifiable
- It is Accessible
- It is Responsive
- It is Sizable
- It is Growing
- Not full of competitors
- The company has the resources to compete in it
- It Fits with the Firm’s Objectives
segment attractiveness
which segment attractive factor is this referring to:
Who is in their market?
Are the segments unique?
Does each segment require a unique marketing mix?
identifiable
which segment attractive factor is this referring to:
- know the product exists
- understand what it can do
- recognize how to buy it
accessible
Establish short term metrics to evaluate the consequences of your efforts
one to one marketing
what steps are these referring to:
- Identify consumer
- Differentiate among other customers
- Interact with your customers -targeting best ones
- Customize product to fit needs
one to one marketing
which segment attractive factor is this referring to:
- React positively to firms offerings
- Move toward the firm’s products/services
- Accept the firm’s value proposition
responsive
which segment attractive factor is this referring to:
- size matters
- Too small and the segment is insignificant
sizeable
