CHAPTER 3.docx

3 Pages
179 Views
Unlock Document

Department
Marketing and Consumer Studies
Course
MCS 2600
Professor
Karen A.Gough
Semester
Winter

Description
CHAPTER 3 - CONSUMER BEHAVIOUR MARKET SEGMENTATIONAND STRATEGIC TARGETING • Market segmentation is the opposite of mass marketing • before the emergence of the marketing concept, the prevailing way of doing business was mass marketing WHAT IS MARKET SEGMENTATION NECESSARY? • Mass marketing would be a logical strategy if everyones strategy wassimilar • The majority of marketers cannotfollow an undifferentiated marketing approach • Segmentation, targeting, and positions enables producers to avoid head-on competition in the marketplace by differentiating their offerings on the basis of such features like price, styling, packing, promotional appeal, method of distribution, and level of service • Market segmentation, strategic targeting, and product positioning are the key elements of marketing most consumer goods CRITERIAFOR EFFECTIVE TARGETTING • Before describing how market segments are identified, we must point out that not every segment that can be identified is viable or profitable • To be an effective target, a market segment should be identifiable, sizeable, stable, accessible, and congruent with the marketers objectives and resources • IDENTIFIABLE o To divide the market in separate segments on the baiss of common or shared needs or characteristics that are relevant to the product or service, a marketer must be able to identify those characteristics • SIZEABLE o In order to be a viable market, a segment must consist of enough consumers to make targeting its profitable o Segment can be identifiable and stable but not be large enough to be profitable • STABLE o Many marketers prefer to target consumer segments that are relatively stable in trerms of lifestyles and consumption patterns and avoid fickle segments that are unpredictable • ACCESSIBLE o To be targeted, a segment must be accessible, which means that marketers must be able to reach that market segment in an economical way • CONGRUENT WITH THE COMPANYS OBJECTIVESAND RESOURCES BASES FOR SEGMENTATION • Segmentation strategy begins by selecting the bases representing the core attributes of a group of existing or potential customers • Asingle charachteristic is never used alone and that virtually all segmentation plans are in the forms of hybrid segmentation that includes attributes from two or more of the four quadrents • The four groupings stem from dividing consumers characteristics along two criteria: facts, and consumer rooted features • CONSUMER ROOTED SEGMENTATION BASES o Group includes two types of personal attributes: facts that are evidence based and cognitions which can mostly be determined through indirect tests o Ones social class is defined by computing an index based on three quantifiable variables o On the other hand, psychographics consist of activities, interests, andopinions o Demographic Segmentation: core of almost all segmentations is demographics, due to the following reasons: demographics are the easiest and most logical way to classify people, and demographics offer the most cost-effective way to locate and reach segment s  Gender  Marital Status  Age  Family life cycle  Income, education, and occupation o Geodemographic Segmentation: hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits o Personality Traits: people are unlikely to disclose their personality traits either because they are guarded or because they do not consciously recognize them o Sociocultural Values and Beliefs: sociological and antrhopological v
More Less

Related notes for MCS 2600

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