MKTG 2800 Lecture Notes - Lecture 9: Fokker E.Ii, North American Industry Classification System, Product Differentiation
4 Sep 2016
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Chapter 9 market segmentation, targeting, and positioning. Market segmentation: aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. Product differentiation: a firm using different marketing mix actions, such as product features and advertising to help consumers perceive the product as being different and better than competing products. Market-product grid: framework to relate the market segments of potential buyers to products offered or potential marketing actions. 4 ways to segment customer needs: e. i. 1. e. i. 2. Demographic segmentation gender, age, household size, income e. i. 3. e. i. 4. Behavioral segmentation product features, usage rate (quantity consumed or patronage during a specific period), 80/20 rule concept that suggests 80 percent of a firm"s sales are obtained from 20 percent of its customers e. ii. Wags to segment organizational (business) markets: e. ii. 1. e. ii. 2. sales. Demographic naics code, number of employees, annual e. ii. 3. Product positioning: the place a product occupies in consumers" minds based on important attributes relative to competitive products.
