MARK20100 Chapter Notes - Chapter 6: Market Segmentation, Target Market, Psychographic
Document Summary
Chapter 6: segmentation, target marketing, positioning, and crm. Subgroups of different customers can be identified on some basis of similarity. The subgroups will be smaller and more homogeneous than the overall market. Needs and wants of a subgroup are more efficiently and effectively addressed than would be possible within the heterogeneous full market: criteria for effective segmentation: Segment is of sufficient size to warrant investing in a unique value- creating strategy for that market. Segment is readily identifiable and can be measured. Segment is clearly differentiated on one or more important dimensions when communicating value of the product. Segment can be reached (in terms of both communication and physical product) to deliver the value of the product, and can be effectively and efficiently managed: geographic segmentation= divides consumer groups based on physical location. Useful but usually insufficient by itself: demographic segmentation= divides consumer groups based on a variety of readily measurable descriptive factors about the group.
