ADV 305 Lecture Notes - Lecture 11: Fruit Preserves, Market Segmentation

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15 Feb 2017
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Focuses on the advantages consumers get from a product instead of looking at the characteristics of the consumer. Often combined with demographic and psychographic info to better define market segment i. e. skin care ad. Person with smooth skin is on the ad. Serves as an aspiration, this is what you will get if you use the product. Person is a woman that"s a demographic. Examines groups based on product usage or purchases information is used to create and target specific clusters of customers i. e. heavy users, average users, light users. If average users group moved away into the light users group, maybe that is a problem you need to address. If nobody moved anywhere, maybe that is also a problem the goal is to move customers into the heavier user groups. Age: often works well when combined with another demographic variable, children i. e. males between 28 and 35 influence lots of spending.

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