MCS 1000 Lecture Notes - Lecture 9: Mass Customization, Market Segmentation, Product Differentiation

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Peter Kim

Document Summary

Cha pter 9- market segmentation, targeting and positioning: Producing a product with different models and colour availability appeals to the preferences of different consumers. Allows one company to surpass another and become the leader in that industry. Smart marketers segment markets so they can respond more effectively to the specific needs/wants of groups of potential buyers, thus increasing sales/profits. Aggregate prospective buyers into groups: common needs, responsive to similar marketing action. Market segments: homogenous groups of prospective buyers that result from the market segmentation process. Consists of people who are relatively similar to each other in terms of their consumption behaviour. Product differentiation: a marketing strategy involving a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. Process of segmenting a market and selecting specific segments as targets is the link between various buyers needs and the organizations marketing program.