MGT252H5 Chapter 7: Chapter 7 (Segmentation, Targeting, and Positioning) - MGT252 (2018)
Document Summary
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Dividing a market into different geographical units, such as global regions, countries, regions within a country, provinces, cities, or even neighbourhoods. Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and even neighbourhoods. Dividing the market into segments based on variables such as age, gender, family size, life cycle, household income (hhi), occupation, education, ethnic or cultural group, and generation. Demographic factors are the most popular bases for segmenting customer groups. One reason is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables.
