MGT 3300 Lecture Notes - Lecture 16: Market Segmentation, Marketing Mix
Document Summary
A complete product-market and generic market definition includes multiple components (see below). Managers need to think about more than just the product they already produce and sell. This can be done by naming product markets with a four-part description: The product type the type of good and/or service offered. Customer needs refers to the needs of the customer (user) that are being met by the product. Customer types identify who specifically is using the product. Geographic area identifies where the market is located. In defining generic markets, there is no product type; the definition consists of the customer needs, customer type, and geographic area. Market segmentation begins with understanding customer needs. The complexities of consumer behavior requires marketers to categorize a market around potentially numerous consumer-related variables of distinction. Determine customer needs: marketers should break apart or disaggregate all customer needs. Determine generic market: a market with broadly similar needs and sellers offering various ways of satisfying those needs.
