Management and Organizational Studies 2320A/B Chapter Notes - Chapter 6: Ideal Point, Fixed Cost, Mass Customization

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Alex Mc Dougall

Document Summary

Step 1: establish overall strategy or objectives: arti(cid:272)ulate the (cid:373)issio(cid:374) a(cid:374)d the o(cid:271)je(cid:272)tives of the (cid:272)o(cid:373)pa(cid:374)y"s (cid:373)arketi(cid:374)g strategy (cid:272)learly, segmentation strategy must match: mission and objectives, swot. Step 2: segmentation basis: segmentation method is based on the benefits that consumers derive from the products. Geographic segmentation: organizes customers into groups on the basis of where they live, eg. National grocery store chain, sobeys, runs similar stores with similar assortments. But percentage of different assortments vary by region, city etc. Demographic segmentation: groups consumers according to easily measured, objective characteristics such as age, gender, income, education, race, religion, family size, home ownership etc, eg. Kellogs: fruit loops for kids, and special k for adults: marketers may find it more advantageous to combine demographic segmentation with other segmentation basis. Psychographic segmentation: psychographics: delves into how customers describe themselves, how they occupy their time (behaviour) and what underlying psychological reasons determine their choices.