MCS 1000 Chapter Notes - Chapter 9: Nesquik, Latte, Orange Juice

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Douglas Adlam

Document Summary

Business segments markets so it can respond better to wants of groups of potential buyers and thus increase its sales and profits. Market segmentation aggregating prospective buyers into groups that (1) have common needs, (2) will respond similarly to a marketing action. Market segments are the relatively homogeneous groups of buyers that result from market segmentation process. Existence of different market segments cause firms to use marketing strategy of product differentiation. Involves firm using different mix activities such as product features and advertising to help consumers see that the product is better than the competitors. Segmenting a market and selecting specific segments as targets is the link between the various buyers" needs and the organization"s marketing program. Market-product grid framework to relate the market segments of potential buyers to products offered or potential marketing actions. As middle income market has shrunk, companies offer different products to high income and low.