MCS 1000 Chapter Notes - Chapter ch.9: Market Segmentation, Psychographic, Target Market

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

Market segments: the relatively homogenous groups of prospective buyers that result from the market segmentation process. Each market segment consists of people who relatively similar to each other in terms of consumption behaviour. Product differentiation: strategy that involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different from and better than competing products. Market product grid: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market. 3 specific situations illustrate the effective use of market segmentation: one product and multiple market segments, multiple products and multiple market segments, segments of one: mass customization. Steps in segmenting and targeting markets: step 1: group potential buyers into a segment.