ADM 2320 Chapter Notes - Chapter 7: Micromarketing, Market Segmentation, Psychographic
Document Summary
The first step is to articulate the mission and the objectives of the company"s marketing strategy clearly. The segmentation strategy must then be consistent with and derived from the firm"s mission and objectives. The second step in the segmentation process is to use a formal approach to segment the market. This step develops descriptions of the different situations of the different segments, their needs, wants, and characteristics. Geographic segmentation: the grouping of consumers on the basis of where they live. Demographic segmentation: the grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education. The third step in the segmentation process involves evaluating the attractiveness of the various segments. The fourth step in the stp process is selecting a target market. The last step in developing a market segmentation strategy is positioning. Positioning is the mental picture that people have about a company and its products or services relative to competitors.