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Chapter 2

TXMI 3210 Chapter Notes - Chapter 2: Market Segmentation, Social Mobility


Department
Textiles, Merchandising and Interiors
Course Code
TXMI 3210
Professor
Katalin Medvedev
Chapter
2

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Chapter 2 notes
Know your customer-cardinal rule in any business, but especially fashion.
Who are your customers?
U.S. Census Bureau-produces more than 3 billion separate statistics about the American people
to help businesspeople who are interested in translating this data to draw projections for new
product and profit opportunities.
Environment-conditions in which we live
Four major environmental factors: market segmentation, economic development,
sociological characteristics, and psychological attitudes.
Market segmentation-the separation of the total consumer market into smaller groups so
producers and retailers can target their goods and services.
Target markets-specific groups of potential customers that a business is attempting to
turn into regular customers.
Geographics- population studies that focus on where people live
Demographics- population studies that divide broad groups of consumers into smaller,
more homogeneous market segments-age, gender, family, income, occupation, education,
religion, race
Psychographics-studies that develop more extensive and personal portraits of potential
customers and their lifestyles. They more fully predict consumer purchase patterns and
distinguish users of a product-social class, values, personality
PRIZM-combines demographics, consumer behavior, and geographic data to help fashion
industry marketers identify and understand their customers and prospects
VALS2-sorts customers into eight major categories based on physical attributes. The horizontal
dimension is primary motivation and the vertical dimension is resources available.
Behavior studies-group consumers according to their opinions of specific products or services
or their actual rate of use of these products or services in order to understand and predict the
behavior of present or potential customers.
Economic environment:
Personal income-the total income received by the population as a whole; people use the
amount of personal income as an indicator of “arriving” in their particular social set
Per capita personal income- personal income divided by number of people in the
population.
Disposable personal income-amount a person has left to spend or save after paying
taxes.
Discretionary income-the money that an individual can spend or save after buying
necessities-food, clothing, shelter, and basic transportation.
oMiddle class families are defined by aspirations not income
oThey have the most influence on the market due to their larger numbers.
Purchasing power-the value of the dollar, or what it can buy
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find more resources at oneclass.com
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