MKTG 2030 Chapter Notes -Customer Development, Brand Management
Document Summary
In our complex society, everyone has different needs and priorities in products. Understanding these needs is complex because technological and cultural advances. Market fragmentation: occurs when peoples diverse interests and backgrounds have divided them into different groups with distinct needs and wants: ex. Sports shoes went from being divided into athletic and non-athletic to all sorts of different athletic needs (jogging, basketball, soccer skateboarders vans, airwalk, dc) Target marketing strategy: instead of trying the sell the same thing to all customers they divide the total market into different segments based on customer characteristics, select one or more segment, and develop products particular to that segment. Understand customers" needs and wants, benefits and features sought, purchase and consumption behaviour: market segmentation. Identify groups: geographic, behavioural, psychographic and demographic segmentation. Describe and profile the groups: who, what, when, where, why: market targeting. Evaluate segment attractiveness: size growth, strategic fit, competitive/comparative advantage, level of competition/defendability. Decide which ones to target: market positioning.
