MKT 100 Chapter Notes - Chapter 7: Geodemographic Segmentation, Profit Margin, Micromarketing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Francescucci

Document Summary

1. establish overall strategy or objective (needs based assessment) Geographic segmentation groups consumers based on where they live. Demographic segmentation groups consumers based on easily measured, objective characteristics eg. Strategic business insights that classifies consumers into eight segments: innovators, Behavioral segmentation group consumers based on the benefits they derive from products and services, their usage rate, their user status and their loyalty. Using multiple segmentation methods: geodemographic segmentation - geographic, psyte grouping of all neighborhoods in canada demographic and lifestyles. into 60 different lifestyle clusters. Identifiable must be able to identify who is in the segment and ensure each segment is distinct. Reachable segment must be accessible through persuasive communications and product distribution. Responsive consumers in segments must react similarly and positively to the firm"s offerings. Substantial and profitable measure size and growth potential: segment profitability = [segment size * adoption % * Purchase behavior (price * # of times the customer buys) * profit margin %] fixed costs.