COMM 223 Lecture Notes - Lecture 5: Micromarketing, Competitive Advantage, Product Differentiation

• School: Concordia University
• Department: Commerce
• Course: COMM 223
• Professor: Brent Pearce

Document Summary

Companies realize they cannot appeal to all buyers in the same way. This is why companies need to focus on building relationships with the right people. Thus, companies have moved away from mass marketing to target marketing. This is why we have to segment the market. We segment the market to be efficient in advertising to people who will buy, to provide superior value and to identify opportunities. Market segmentation consists of dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that may require different strategies or mixes. You can use on variable or multiple variable to segment markets. There are different ways to segment a market: Geographic segmentation: dividing by geographical unit such as nations, regions, provinces, counties, cities, neighbourhoods. Demographic segmentation: based on variables such as age, gender, family size, income, occupation, education, religion, religion, race, generation, and nationality. Psychographic segmentation: based on social class, lifestyle, or personality characteristics.