marketing chapter 9 notes - Chapter 9 Identifying Market...

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Chapter 9 Identifying Market Segments and Targets Competitive Trends Age segments, gender segments, price segments, sport segments, lifestyle segments Market Segmentation involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action Market Segments are the homogenous groups of prospective buyers that result from segmentation Product Differentiation involves a firm’s using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. Product Market Grid —framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm When to segment markets ? A business does so when it thinks its profits will increase Customer Relationship Management---- essence due to fact individuals have unique wants and desires Mass Customization has been made possible through the internet ordering and flexible marketing processes Build-to-order manufacturing only when there is an order placed by a customer CRM versus Synergies Synergy—is the increased customer value achieved through performing organizations functions more efficiently Steps in Segmenting and Targeting Markets Step 1---Group Potential Buyers into Segments Criteria to Use in Forming Segments 1-Potential for increased profit—for nonprofits- criterion is potential to serve users more effectively 2—Similarity of needs of potential buys within a segment 3—Difference of needs of buys among segments 4- Potential of a marketing action to each a segment 5—Simplicity and cost of assigning potential buyers to segments Ways to Segment Consumer Markets Customer Characteristics 1. Geographic customer characteristic: Region---spicier salsa made for people in southwest
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marketing chapter 9 notes - Chapter 9 Identifying Market...

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