ADMS 3220 Chapter 3: Marketing Chapter 3.doc

• School: York University
• Department: Administrative Studies
• Course: ADMS 3220
• Professor: Pilar Ford

Document Summary

A single product, price, promotion is unlikely to satisfy all consumers" needs : consumers have different motivations, needs and preferences, it is unrealistic, and not smart marketing, to go after the entire market with a single offering. What is segmentation: segmentation, breaking the market into smaller, homogeneous consumer groups, segment, a group of customers who share similar inclinations or liking toward a brand, marketer"s goal, create a marketing mix that meet the segment"s needs. Types of segmentation: mass marketing, all customers are treated the same, it simplifies business but it is unrealistic (because customers differ) , e. g. , pepsi seems to be mass marketed but is not, pepsi, diet pepsi, caffeine free. Segmentation: segmentation falls between one-to-one and mass marketing, as segment size increases, segments become more heterogeneous, as segment size decreases, segments become less profitable, marketers need the optimal segment size.