Chapter 7 Introductory Marketing Notes

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Department
Marketing and Consumer Studies
Course
MCS 1000
Professor
Douglas Adlam
Semester
Winter

Description
Chapter 7 MarketingSegmentation TargetingPositioningSegmentation Dividing a market into distinct group w distinct needs characteristics or behaviours that might require separate products or marketing mixesTargeting The process of evaluating each market segments attractivenessselecting 1 or more segments to enterDifferentiation Actually differentiating the market offering to create superior customer valuePositioning Arranging for a market offering to occupy a clear distinctivedesirable place relative to competing products in the minds of target consumersMarket SegmentationSegmenting Consumer Markets Geographic Segmentation calls for dividing the market into different geographical units such as nations regions provinces countriescities or even neibourhoodsDemographic Segmentation divides the market into groups based on variables such as age gender family size family life cycle income occupation education religion race or ethnicitylanguage Most popular approach for segmenting customer groupsAgeLifeCycle Stage consumer wantsneeds change w age Dividing a market into different agelifecycle groupsGender Segmentation Dividing a market into different groups based on gender Has been used in clothing cosmetics toiletriesmagazineIncome Segmentation Dividing a market into different income groupsRace EthnicityLanguagePsychographic Segmentation Describing a market segment according to shared attitudesbehaviours lifestylespersonality Marketers also use personality variables to segment marketsBehavioural Segmentation divides buyers into groups based on their knowledge attitudes uses or responses to a product Occasions Buyers Buyers can be grouped according to occasions which they get the idea to buy actually make their purchase or use the purchased item Can help firms build up product usageBenefits sought Dividing the market into groups according to the different benefit that consumers seek from the productUser Status Markets can be segmented into groups of nonusers exusers potential users firsttime usersregular users of a product An organizations market position also influences its focusMarket share leaders focus on attracting potential users whereas smaller firms focus on attracting current users away from the market leaderUsage Rate Markets can also be segmented into light medium heavy product users Heavy users are often small percentage of the market but account for a high percentage of total consumption Marketers often prefer to attract 1 heavy user to their product or service rather than several light usersLoyalty Status A market can also be segmented by consumer loyalty Consumers can be loyal to brands storescompanies Buyers can be divided into groups according to their degrees of loyaltyUsing Multiple Segmentation Bases Markets rarely limit their segmentation analysis to only 1 or a few variables rather they use multiple segmentation bases in an effort to identify smaller betterdefined target groupsSegmenting Business Markets Business buyers can be segmented geographically demographically or by benefits sought user status usage rateloyalty status Business buyers use additional variables such as customer operating characteristics purchasing approaches situational factorspersonal characteristics A company may also set up separate systems for dealing with larger or multiple location customers
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