MKT 100 Chapter Notes - Chapter 7: Micromarketing, Ideal Point, Fixed Cost

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Asif Salam

Document Summary

Strategy objectives segmentation basis evaluate segmnt attractiveness . Segment strategy must be consistent w/ and derived from the firm"s mission/objectives swot. Geographic segmentation organizes customers into groups on basis of where they live. Demographic segmentation grouping of consumers according to easily measured objective characteristics. Age, gender, income, education, race, marital status, fam life cycle, ethnic, background. Behavioural segmentation based on benefits they derive from prod/serve their usage rate, user status, loyalty benefit segmentation loyalty segmentation. Benefits sought (convenience, economy, prestige, quality, speed, service) All neighborhoods in canada into 60 lifestyle clusters w/ specific locations (urban lower middle - urban bohemia suburban affluent asian heights) Determine who is w/in mkt to design product to meet their needs. If mkt too small/buying power is insignificant no profit. Segment profitablity = (seg. size x seg. adoption % x purc. bahviour x prof. margin %) fixed costs. Adoption % - of customers in seg. who r likely to adopt.