MGT252H5 Lecture Notes - Lecture 5: Laundry Detergent, Power Tool, Mass Marketing
Document Summary
Mass marketing many beneits (economies of scale) reduces many ixed costs. But people want diferent things and respond diferently. Target marketing speciic product which has higher ixed costs. P&g is perfect example of this (i. e. they own 8 laundry detergent companies) Mass marketing is much more uncommon nowadays. Market segmenting dividing a market into groups with distinct needs (similar needs within each segment) (i. e. home renovation can be divided into professionals, diy people, and beginners) Targeting evaluating the attractiveness of each market segments to target. A company can choose one or several segments to target (i. e. canadian tire may target all 3 home renovations segment, whereas. Market positioning clear and distinctive position relative to competition. Beneit segmentation identify need dimensions to efectively segment the market and create distinct value creation (i. e. power tool market there is power vs. ease of use, additional features, etc. )
