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Lecture 8

ADMS 2200 Lecture Notes - Lecture 8: Census Geographic Units Of Canada, Geographic Information System, Baby BoomersPremium


Department
Administrative Studies
Course Code
ADMS 2200
Professor
Kim Snow
Lecture
8

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Lecture 8 Market Segmentation, Targeting, and Positioning
Market Group of people with sufficient purchasing power, authority, and willingness
to buy
Target Market Group of people to whom a firm decides to direct its marketing efforts
and ultimately its goods and services (groups of customer that the organization’s
marketing strategy aim to)
Consumer Products Products bought by ultimate consumers for personal use
Business Products Goods and services purchased for use either directly or indirectly in
the production of other goods and services for resale
Mass Marketing the least effective and most costly marketing strategy
Market Segmentation Division of the total market into smaller, relatively homogenous
groups (group customers based on the similarities between them)
Criteria for Effective Segmentation
The segment must have measurable size and purchasing power
Marketers must find a way to effectively promote and serve the market segment
Segment must be sufficiently large to offer good profit potential
Firm must aim for segments that match its marketing capabilities
Segmenting Consumer Markets (Four commons bases for segmenting consumer
markets)
Geographic Segmentation - Division of an overall market into homogenous
groups based on their locations (urban vs rural)
Government Classification:
o Census Metropolitan Area (CMA)
o Census Agglomeration (CA)
Marketers focus on core regions, those from which they draw 40 to 80
percent of sales
Geographic Information System (GIS) Computer systems that assemble,
store, manipulate, and display data by location
Demographic Segmentation Division of an overall market into homogenous
groups based on variables such as gender, age, income, occupation, education,
sexual orientation, household size, and stage in the family life cycle, also called
socioeconomic segmentation (currently the most popular)
Segmenting by Age
o Distinctions among age groups blur as consumers’ roles and needs
change and as age distribution shifts
o School aged children
o Teens and tweens
o Generation X
o Baby Boomers
o Seniors
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The Cohort Effect
o Tendency of members of a generation to be influenced and bound
together by significant events in their formative years, ages 17 to
22 (people become more cohesive, make the same decision at the
same time)
Segmenting by Ethic Group
o Quebecois and English
o Chinese Canadians
o South-Asian Canadian
o Black Canadians
Segmenting by Family Life Cycle Stages
o Family life cycle The process of family formation and dissolution
o Life stage, not age, is primary concern of marketer
Segmenting by Household Type
o Household vary by life cycle stage and the presence or absence of
children
Segmenting by Income and Expenditure Patterns
o Engel’s Laws
o Helps marketers target consumers at all income levels
Demographic Segmentation Abroad
o Demographic data abroad can be more difficult to get than in
Canada
o Government census data may include different information than
Canadian census
Psychographic Segmentation Division of a population into groups that have
similar attitudes, values, and lifestyles
VALS
o A psychographic segmentation system developed 25 years ago
and today owned and managed by SRI Consulting Business
Intelligence (SRIC BI)
o Based on concepts of resources and motivation
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