Market Segmentation - ANSWER-The process of dividing consumers into groups
with similar consumer characteristics and product needs.
Market Segmentation - ANSWER-Allows managers to break the market into
small manageable groups, so that firms can tailor their offerings to satisfy
different needs and wants.
Undifferentiated (Mass Marketing) - ANSWER-Firms sell a single product (with
same marketing approach) to all consumers.
Advantage to Undifferentiated Marketing - ANSWER-Economies of scale in
production, promotion, and distribution
Disadvantage to Undifferentiated Marketing - ANSWER-Intense competition and
more sophisticated consumers
Example of Undifferentiated Marketing - ANSWER-Ford's Model T, Black &
Decker
Differentiated (Product-Variety Marketing) - ANSWER-Firms provide a wide
variety of differentiated offerings to different segments (sometimes to all
consumers).
Advantage of Differentiated Marketing - ANSWER-Greater variety to consumers
Disadvantage of Differentiated Marketing - ANSWER-Increased Costs
Example of Differentiated Marketing - ANSWER-Coca-Cola
, Concentrated (Target) Marketing - ANSWER-Firms identify major market
segments, and then target a single segment with a single marketing mix.
Advantage of Concentrated Marketing - ANSWER-Concentrated effort to that
specific segment; control cost to appeal only to that primary target segment.
Disadvantage of Concentrated Marketing - ANSWER-Possibility of missed
opportunities; vulnerable to competition.
Example of Concentrated Marketing - ANSWER-Piano Maker
Multiple Segmentation - ANSWER-Firms target different segments with a unique
marketing mix for each segment.
Survey Stage - ANSWER-understand consumer motivations, attitudes, and
behavior
Analysis Stage - ANSWER-identify consumer groups with similar characteristics
Profiling Stage - ANSWER-Profile each group in terms of their attitudes,
behavior, demographics, psychographics and media habits
Factors affecting the feasibility of segmentation - ANSWER-A marketing segment
must be: measurable, accessible, substantial, unique, appropriate, and stable
Bases for Segmentation - ANSWER-•Geographic and geodemographic
•Demographic
•Behavioral
•Psychographic
Geographic - ANSWER-One of the easiest and most commonly used methods.
Markets are divided into groups based on region, climate, population density.
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