MKT 337 Lecture Notes - Lecture 9: Market Segmentation, Mass Customization, Product Differentiation
Document Summary
A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers and thus increasing its sales and profiles. Market segmentation- aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action. Market segments- relatively homogenous groups of prospective buyers that result from the market segmentation process. Product differentiation- existence of different market segments has caused firms to use a strategy called product differentiation. This strategy involves a firm using different marketing mix activities, to help consumer perceive the product as being different and better than competing products. Effective market segmentation does two key things: (1) forms meaningful groups and (2) develops specific marketing mix actions. Identify market needs link needs to actions execute marketing program actions. Multiple products and multiple market segments: the strategy is very effective if it meets customers needs better.
