MARK20100 Lecture Notes - Lecture 7: Zip Code, Mass Customization, Old Navy
Document Summary
Where are we in the marketing process: Segmentation: market segmentation: the process of dividing a market into groups of consumers who have similar needs and who respond to marketing mix variables (the 4 p"s, allows firms to: Take into account consumers" diverse needs and differing behaviors. Design the marketing mix to be more closely matched with consumer needs. Improve the efficiency and effectiveness of resource allocation. Gender, race, age, income, birth era, occupation, household size. Although separate book covers or advertisements are expensive, these expenses are minor compared with the costs of producing multiple versions of content for different segments: another example: sprite zero / pregnancy tests. Risks of targeting a specific gender: can offend the other gender, only targeting half of the market, ads mocking the other gender commercials. Template: for (highest ranked segment) , the (product family name) offers (highest weighted benefit) because (strategic control point company possesses) .
