Textbook Notes (369,133)
Canada (162,403)
BUS 343 (122)
Todd Green (11)
Chapter

Bus 343 - Classnote 4.docx

4 Pages
123 Views

Department
Business Administration
Course Code
BUS 343
Professor
Todd Green

This preview shows page 1. Sign up to view the full 4 pages of the document.
Description
BUS 343 October 4, 2010 Lecture 4 Chapter 3 Todd Green Concept of  Market Fragmentation: The creation of different consumer groups due to a diversity of needs and Segmentation wants in society  Target Marketing Strategy: Dividing the total market into different segments and then selecting one or more segments then developing products for it  1. Select Market: Define market, understand customers  2. Market Segmentation: Identify groups, profile/describe groups  3. Market Targeting: Evaluate segments, decide which ones to target  4. Market Positioning: Decide how you want to be known and differentiated for consumers  5. Create and Execute Marketing Mix Programs  Segmentation: Process of dividing a larger market into smaller groups based on characteristics  How to Identify a Viable Market Segments:  1. Members of segment must be similar to each other  2. Members of the segment are different from other consumers (segments)  3. Large enough  4. Segment must have purchasing power  5. Reachable – possible to communicate advertisement to Segmenting  Segmentation Variables: Factors which divide the whole market into groups Consumer Markets  80/20 Rule: 20% of purchasers account for 80% of a product’s sales  Long Tail: New selling approach where companies make money by selling small amounts of items that only a few people want, but needs a lot of different items  Behavioural Segmentation: Segmentation approach which divides consumers based on behaviour about products  Benefit Segmentation: Segmentation approach which divides consumers based on the benefits or value they seek in buying/using products  Product Usage Segmentation: Segmentation approach which divides consumers based on the amount purchased or how product is used  Usage Occasions: Indicator based on when consumers use a product most  Psychographic Segmentation: Groups consumers into an individual’s mental state or psychology and is concerned with the motivation for consumers to buy products  Demographic Segmentation: Segmentation by grouping of population characteristics (sex, age, etc)  Usually limited to be the primary basis only  Sex: Male and Female  Age  Baby Boomers: Largest age segment in Canada, comprises of people who are born 1947- 1966  Family Structure: Family life cycle: teens, young adults, married with children, empty nesters  Income and Social Structure  Ethnicity  Geography: Region and location  Geodemography: Segments market by combining techniques of geography and demography Segmenting Business  Operating Variables: Factors of dividing business organizations Markets  Industrial Psychographics: Application of psychographics (values, goals, missions) to the business context  Production Technology Used  Type of purchases made  Degree of technical expertise  Degree of financial expertise  Degree of operations expertise  How they make purchase decisions Profiles  Who makes the purchase decisions  A current or non-current user of the product  Segment Profile: A description of the typical customer in a segment  Who are they  What do they want and why  When do they buy and use it  Where d
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

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

Sign up

Join to view


OR

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.


Submit