MCS 1000 Chapter Notes - Chapter 9: Niche Market, Acme Corporation, Market Segmentation
11 May 2016
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People are different, and people who are different are likely to have different needs and wants. Market segmentation involves aggregating prospective buyers into groups that (1) have common needs, and (2) will respond similarly to a marketing action. Market segments: are the relatively homogeneous groups of prospective buyers that result from the market segmentation process. Each market segment consists of people who are relatively similar to each other in terms of their consumption behavior. Product differentiation: strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different from and better than competing products. The perceived differences may involve physical features or nonphysical ones, such as image or price. Market-product grid: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. Three specific situations that illustrate effective use of market segmentation are: one product and multiple market segments:
