Chapter 6: Segmenting and Targeting and Positioning Markets Flashcards
Market
people or organizations with needs or wants and the ability and willingness to buy.
Market is (1) people organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy –> a group of people or an organization that lacks any one of theses characteristics is not considered a market
Market segment-
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Why segment?
• tailor marketing mix
• Identify declining demand
• Identify consumer needs & preferences
-Identify new market opportunities
Criteria for segmentation:
substantial
identifiable and measurable
accessible
responsiveness
Criteria for segmentation:substantial
segment must be large enough to warrant a special marketing mix
Criteria for segmentation:identifiable and measurable
segments must be identifiable an their size measurable ( geographic boundaries, number of people in various age groups, other social and demographic characteristics must be identifiable)
Criteria for segmentation:accessible
- members of targeted segments must be reachable with marketing mix
Criteria for segmentation:responsiveness
unless segments responds to a marketing mix differently, no separate treatment is needed.
Bases for consumer:
- geographic
- demographic
- psycho-graphic
- benefits sought
- usage
Bases for consumer:-geographic
segmenting markets by region of a country or the world, market size, market density ( how many people are in a certain area), climate (snowmobiles where the is snow
Bases for consumer:-demographic
age, gender, income, ethnic background, and family life cycle
Bases for consumer:-psycho-graphic
market segmentation based on personality, motives, lifestyle
Bases for consumer:- benefits sought
the process of grouping customers into market segments according to the benefits they seek from the product (needs are similar– snacky foods, healthy foods)
Bases for consumer:-usage
divides the market by the amount the product is consumed.
Steps for segmenting
- Select market- define the overall market or product category to be studied
- product bases- requires managerial insight
- descriptors- identify the specific segmentation variables to use
- Profile and analyze segments -should include the segments’ size, expected growth, purchase frequency, current brand usage, brand loyal, and ln term sales and profit potential
- select target market- influences the firms target mix
- design mix- product, place, promotion , price