MKT 100 Lecture Notes - Lecture 5: Custom Car, Target Market, Shampoo

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: G

Document Summary

Segmentation - identifying meaningful different groups of customers. We identify existing segments, we don"t create segments. Ex: people who have hazel eyes are already existing. Features of a market segment that make it effective: segment has to be identifiable and measurable. Homogenous within, heterogenous between other groups: accessible or reachable. Market at the right time to the right customers: size of segment should be substantial or sizeable. Should be enough people willing to buy the product. White out was invented for typewriters to correct mistakes: must be meaningful and actionable. Making a custom car for short women is unreasonable b/c there aren"t enough short women buying cars to make it profitable. A segment that is not profitable is not a viable segment! Begin with the most important benefits/needs/attributes of a particular product category and then cluster the benefits to a broader category. Example: shampoo wants: shiny hair, less frizz, reduced dandruff, good price.