MKTG1021 Lecture Notes - Lecture 5: Psychographic
Document Summary
Cluster similar type buyers/people into like groups. Process of dividing diverse customers into smaller groups with similar needs and responses to marketing mix. Steps: strategy or objectives, comes from company mission and current state of opportunities, segmentation methods, demographics, most common, geographic, psychographics: I. e. whitening toothpaste v. sensitive: behavioral, occasional segmentation, when people use - holiday targets. Loyalty segmentation: people have different usage rates, evaluate segment attractiveness, is it attractive to target certain segments, 5 criteria. Reachable: does the segment know about your product, understand it, and know how to buy it. Responsive: reacts positively, move towards the product and accept value proposition. Profitable: segment size, percent adoption, purchase behavior, profit margin percent, - fixed costs, = segment size * segment adoption % * purchase behavior * profit margins - fixed costs. Substantial: is it big enough to go after, can it make a profit, select a target market, concentrated: Choose 1 segment and go after it hard: differentiated:
