Textbook Notes (362,865)
Canada (158,079)
MGCR 352 (26)
Chapter 9

Marketing 1 Chapter 9.docx

3 Pages
Unlock Document

McGill University
Management Core
MGCR 352
Fabienne Cyrius

Chapter 9 Market Segmentation, Targeting, and Positioning Why segment markets? What market segmentation means? Putting people into groups that 1) have common needs 2) will respond similarly to a marketing action Marketing Segments: the relatively homogeneous groups of prospective buyers that result from the market segmentation process 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. Segmentation: linking needs to actions, segmentation is a means to an end: to lead to tangible marketing actions that can increase sales and profitability Using Market-Product Grids -a framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. When to segment markets -one product and multiple market segments -multiple products and multiple market segments -segments of one or mass customization Steps in Segmenting and Targeting Markets Step 1: Group Potential Buyers into Segments Criteria to use in forming segments A marketing manager should develop market segments that meet five main criteria: -potential for increased profit -similarity of needs of potential buyers within a segment -difference of needs of buyers among segments -potential of a marketing action to reach a segment -simplicity and cost of assigning potential buyers to segment Way to segment consumer markets -geographic segmentation -demographic segmentation -psychological segmentation -behavioral segmentation --usage rate: quantity consumed or patronage-store visits- during a specific period; varies significantly among different consumer groups --80/20 rule: a concept that suggests 80 percent of a firms sales are obtained from 20 percent of its customers Ways to segment Organizational (Business) Markets -geographic -demographic -behavioral Step 2: Group Products to be Sold into Categories Step 3: Develop a Market-Product Grid and Estimate Size of Markets Step 4: Select Target Markets Criteria to Use in Choosing the Target Segments Two different kinds: -those to use in dividing the market segments -those to use in actually choosing the target segments Five Criteria: -Market size -Expected growth -Competitive position -Cost of reaching the segment -Compatibility with the Organization’s objectives and resources Choose the Segments Step 5: Take Marketing Actions to Reach Target Markets Positioning the Product Product positioning: the place an offering occupies in consumers’ m
More Less

Related notes for MGCR 352

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.