marketing ch 9 -...

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AEM 2400: Chapter 9 Segmenting, Positioning, and forecasting markets Why segment markets? o What market segmentation means A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers Market segmentation Aggregating prospective buyers into groups that: o Have common needs o Will respond similarly to a marketing action Market Segments Relatively homogenous groups of prospective buyers that result from the market segmentation process Product differentiation When a firm uses different marketing mix activities, such as product features and advertising to help consumers perceive the product as being different and better than competing products o Physical or non physical benefits (image, price) Segmentation: Linking needs to actions Foundation of effective marketing segmentation o Form meaningful groupings o Developing specific marketing mix actions Zappos: “the shoe company that just happens to sell shoes” Point of difference: speed at which customers receive their purchases o When and how to segment markets When a company expects that this will increase its sales, profit and ROI When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment the market One product and multiple market segments Multiple products and multiple market segments “segments of one” or mass customization Identify market needs Benefits in terms of Product features Expense Quality Savings in time and convenience Link needs to actions Take steps to segment and target markets Execute Marketing program Actions A marketing mix in terms of Product Price promotion place
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AEM 2400: Chapter 9 Segmenting, Positioning, and forecasting markets o One product and multiple market segments Avoid extra cost of developing and producing additional versions o Multiple products and multiple market segments Ex. Ford’s different line of cars, SUVs and pickup trucks o Segments of one: Mass customization CRM Customer Relationship Management Each customer has unique needs and wants Mass customization Tailoring goods or services to the tastes of individual
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marketing ch 9 -...

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