ARBUS302 Study Guide - Midterm Guide: Market Segmentation, Umbrella Brand, Target Costing
17 Nov 2017
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Document Summary
Marketing segmentation involves aggregating prospective buyers into groups that have common needs and will respond similarly to marketing action. Market segments: relatively homogeneous groups of prospective buyers that result from the market segmentation process. Consists of people who are relatively similar to each other in terms of their consumption behaviour. Product differentiation: involves a firm using different marketing mix activities such as product features and advertising, to help consumers perceive the product as being different from ad better than competing products. Stresses the importance of grouping people or organizations in a market according to the similarity of their needs and benefits they are looking for in making a purchase. Such needs and benefits must be related to specific marketing actions that the organization can take. Market-product grid: framework to relate market segments of potential buyers to products offered or potential marketing actions by the firm.
