Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
people or organizations with needs or wants and the ability and willingness to buy
|
Market
|
|
|
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
|
Market Segment
|
|
|
the process of dividing a market into meaningful, relatively similar, identifiable segments or groups
|
Market Segmentation
|
|
|
-more precise definition of customers needs and wants
-marketers can better define customer needs -decision makers can focus effort and resources |
The importance of Market Segmentation
|
|
|
-substantiality
-identifiability and measruability -accessibility -responsiveness |
Criteria for successful market segmentation
|
|
|
segment must be large enough to warrant a special marketing mix
|
substantiality
|
|
|
segments must be identifiable and their size measurable
|
identifiability and measureability
|
|
|
members of targeted segments must be reachable with marketing mix
|
accessibility
|
|
|
unless segment responds to a marketing mix differently, no separate treatment is needed
|
responsiveness
|
|
|
- geography
-demographics -psychographics -benefits sought -usage rate |
bases for segmentation
|
|
|
-region of the country or world
-market size -market density (number of people within a unit of land) -climate changes |
geographic segmentation
|
|
|
-age
-gender -income -ethnic background -family life cycle |
demographic segmentation
|
|
|
-personality
-motives -lifestyles -geodemographics |
psychographic segmentation
|
|
|
segmenting potential customers into neighborhood lifestyle categories
combines geographic, demographic, and lifestyle segmentation |
geodemographic segmentation
|
|
|
the process of grouping customers into market segments according to the benefits they seek from the product
ie: different cell phone plans |
benefit segmentation
|
|
|
divides a market by the amount of product bought or consumed
|
usage-rate segmentation
|
|
|
purpose is to identify marketing opportunities
1. select a market or product category for study 2. choose a basis or bases for segmenting the market 3.select segmentation descriptors 4.profile and analyze segments 5. selct target markets 6. design, implement, and maintain appropriate marketing mixes |
steps to segment a market
|
|
|
-undifferentiated strategy
-concentrated strategy -multisegment strategy |
strategies for selecting target markets
|
|
|
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
|
target market
|
|
|
adopts a mass market philosophy, viewing the market as one big market with no individual segments
ie: flour and sugar advantage: potential savings on marketing costs disadvantage: unimaginative product offerings |
undifferentiated targeting
|
