Business Administration 2295F/G Chapter Notes - Chapter 6: Product Differentiation, Swot Analysis, Marketing Mix
21 Oct 2014
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Consumers have diverse needs and a single product can"t satisfy everyone 2. Companies have nite amounts of money and it needs to be spent ef ciently and effectively on consumers who are most likely to purchase the product 3. Need to have clear consumers insights on target markets. Consumer market: consists of products, ideas, and services that a person can purchase or support for personal use. Business market: involves products that are purchased either to run a business or to be used as a component in another good or service. Market segmentation: the aggregation of prospective buyers into groups that have common needs and respond similarly to marketing programs. Relatively homogenous and consist of people who are similar in terms of their ! consumption, behavior etc. Product differentiation: involves positioning a product apart from the competition in the eyes of consumers. Doesn"t mean product has to be better than competition.
