Market Segmentation - ANSWER-The process of dividing consumers into groups
with similar consumer characteristics and product needs.
Market Segmentation - ANSWER-Allows managers to break the market into
small manageable groups, so that firms can tailor their offerings to satisfy
different needs and wants.
Undifferentiated (Mass Marketing) - ANSWER-Firms sell a single product (with
same marketing approach) to all consumers.
Advantage to Undifferentiated Marketing - ANSWER-Economies of scale in
production, promotion, and distribution
Disadvantage to Undifferentiated Marketing - ANSWER-Intense competition and
more sophisticated consumers
Example of Undifferentiated Marketing - ANSWER-Ford's Model T, Black &
Decker
Differentiated (Product-Variety Marketing) - ANSWER-Firms provide a wide
variety of differentiated offerings to different segments (sometimes to all
consumers).
Advantage of Differentiated Marketing - ANSWER-Greater variety to consumers
Disadvantage of Differentiated Marketing - ANSWER-Increased Costs
Example of Differentiated Marketing - ANSWER-Coca-Cola
, Concentrated (Target) Marketing - ANSWER-Firms identify major market
segments, and then target a single segment with a single marketing mix.
Advantage of Concentrated Marketing - ANSWER-Concentrated effort to that
specific segment; control cost to appeal only to that primary target segment.
Disadvantage of Concentrated Marketing - ANSWER-Possibility of missed
opportunities; vulnerable to competition.
Example of Concentrated Marketing - ANSWER-Piano Maker
Multiple Segmentation - ANSWER-Firms target different segments with a unique
marketing mix for each segment.
Survey Stage - ANSWER-understand consumer motivations, attitudes, and
behavior
Analysis Stage - ANSWER-identify consumer groups with similar characteristics
Profiling Stage - ANSWER-Profile each group in terms of their attitudes,
behavior, demographics, psychographics and media habits
Factors affecting the feasibility of segmentation - ANSWER-A marketing segment
must be: measurable, accessible, substantial, unique, appropriate, and stable
Bases for Segmentation - ANSWER-•Geographic and geodemographic
•Demographic
•Behavioral
•Psychographic
Geographic - ANSWER-One of the easiest and most commonly used methods.
Markets are divided into groups based on region, climate, population density.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Hkane. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
