COMM 223 Lecture Notes - Lecture 6: Geodemographic Segmentation, Market Segmentation, Micromarketing
18 Feb 2016
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Document Summary
There is different approaches about the market place going from mass market approach to market segmentation approach. The approaches differs depending on the product, the use of the marketing mix etc. There is two group of people: group 1 and group 2. Group 1 is willing to pay a product 15$ and there are 5000 members. Group 2 is willing to pay the same product 25$ and there are 1000 members. You have to sell it at 15$ as the first group will buy it and the second also as it is less expensive than what they are willing to pay. But the best thing to do is to add a particularity to the product in order to sell it 25$ to the second group and to sell 15$ the basic product to the first group. To add a particularity to an existing product is called product differentiation. This is an example of why you have to segment market.
