PRELIM_2_Study_Guide

PRELIM_2_Study_Guide - PRELIM 2 Chapter 9 Review Intro...

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PRELIM 2: Chapter 9 Review Intro: ZAPPOS: “Service Company” that specializes in the sales of shoes, handbags, and other items. They focus on service. Market Segmentation: Aggregating prospective buyers into groups (1) common needs (2) will respond similarly to marketing action. >Respond more effectively to the wants of groups== increase in sales and profits > Product Differentiation: Using diff. marketing mix strategies > Effective when… (1) form meaningful groupings (2) develop specific marketing mix actions. Market Segments: Relatively homogenous (ROB) groups from market segmentation Segmenting: Various Buyers Needs====Organizations marketing program ** When expenses are greater than the benefits of segmenting…. Don’t do it. 3 specific segmenting strategies (1) One product, and multiple markets [developing product for several markets segments; saves money] (2) Multiple products and multiple market segments [ ex. Fords selection of cars; Gap+Banana Republic+Old Navy] (3) Mass customization “Segments of one” You must balance Satisfying customer wants w. Achieving Organizational Synergy Synergy: Increased customer value, achieved through performing organizational functions like marketing or more efficiency. 5 Key Steps in Segmenting and Targeting Markets 1. Group Potential buyers into segments
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a. Criteria to use in forming Segments i. Simplicity and Cost effectiveness of assigning potential buyers to segments. ii. Potential for increased profit. iii. Similarity of needs of potential buyers within a segment 1. Product features or advertising media used. (BET = Schfatzas) iv. Difference of needs of buyers among segments.
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