MKT 100 Lecture 6: MKT-100-Chapter-6

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Hamed Mehrabi

Document Summary

Demographic segmentation: groups consumer according to easily measured, objective characteristics such as age, gender, income, education, race, occupation, religion, marital status, family size, family life cycle, and home ownership. Involves evaluating the attractiveness of the various segments: markets must first determine whether the segment is worth pursuing by using several descriptive criteria: is segment identifiable, reachable, responsive, and substantial and profitable. Identifiable: firms must determine who is within their market to be able to design products or services to meet their needs, segments must be distinct from one another. In order segmentation strategy to be successful, the customers in segment must react similarly and positively to the firms offering. If, through its distinctive competencies, the firm cannot provide products or services to that segment, it should not target it. Substantial and profitable: once firm has identified its potential target markets, it needs to measure their size and growth potential.