MARK20100 Lecture Notes - Lecture 9: Market Segmentation, Product Differentiation, Mass Customization
Document Summary
A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers and thus increase its sales and profits. Not-for-profit organizations also segment the clients they serve to satisfy client needs more effectively while achieving the organization"s goals. Product differentiation involves a firm using different marketing mix actions, such as product feature and advertising, to help consumers perceive the product as being different and better than competitors. A market product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions. A business goes to the trouble and expense of segmenting its markets when it expects that this extra effort will increase its sales, profit, and return on investment. Three specific segmentation strategies are: one product and multiple market segments. Build to order is manufacturing a product only when there is an order from a customer.
