MGMA01H3 Chapter Notes - Chapter 8: Abercrombie & Fitch, 7 Up, Value Proposition
20 Jan 2013
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Designing customer-driven marketing strategies that build the right relationships with the right customers: Market segmentation dividing a market into smaller groups with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes. Although there are benefits to mass marketing (economies of scale), everyone is different! Different consumers: wants different things are able to pay different prices respond differently to information. In most markets, a firm cannot appeal to all customers in the same way. And most firms cannot serve all potential customers profitably. Most firms have abandoned mass marketing in favour of segmentation and targeting. Other companies are seeking to cultivate as-yet-untapped geographic territory. Demographic segmentation dividing the market into groups based on variables such as age, gender, gamily size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Psychographic segmentation dividing a market into different groups based on social class, lifestyle, or personality characteristics.
