AEM 2400 Lecture Notes - Lecture 8: Alex Tse, Psychographic, Ugg Boots

• School: Cornell University
• Department: Applied Economics & Management
• Course: AEM 2400
• Professor: Debra Perosio

Document Summary

Alex tse: markets are groups (or people) with something in common, common needs and willingness to purchase, markets have segments, must be. Criteria for segmentation: substantiality segment must be large enough to warrant a special marketing mix. Tv ads: responsiveness unless segment responds to a marketing mix differently, no separate treatment is needed. Bases for segmentation: geography, demographics, psychographics, benefits sought, usage rate. Geographic segmentation: region of the country or world, market size, market density, climate. Macy"s: 85% of assortment is the same 15% reflects local preferences. Benefits of regional segmentation: new ways to generate sales in sluggish and competitive markets, scanner data allow assessment of best selling brands in region, regional brands appeal to local preferences, quicker reaction to competition. Income: very important factor for marketers to target, ethnic background, family life cycle, these are called descriptors. Benefit"s sought: the process of grouping customers into market segments according to the benefits they seek from the product.