Study Guide for Lecture 5 - Target marketing I

Study Guide for Lecture 5 - Target marketing I - Study...

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Study guide for lecture 5: Target Marketing I Segmentation 0. From lecture 1 0. A market is all the people who… 0. Benefit from your product 1. Have the resources needed to exchange 0. Money to spend 1. Willingness to spend it 2. Ability to make the exchange 1. Paradox 1. Perception is in the mind of the consumer 2. If no two people are truly alike 3. How can we speak of mass markets? 2. The law of truly large numbers 4. Given enough people 2. Subset similar enough with respect to your product 3. This subset may be large enough for you to make money 4. This is what segmentation is all about 3. What is a segment? 5. Relatively homogeneous groups of prospective buyers who are similar to each other in  terms of their consumption behavior 6. 4 conditions for a segment (This is different than in the book) 5. Similar to each other 6. Different from everyone else 7. Reachable 8. Economically viable 4. Why Segment? 7. So you can respond more effectively to the wants of groups of potential buyers 9. And thus increase sales and profits 8. Two fundamental strategies (Porter) 10. Low cost producer 11. Differentiation 3. There is only room for one low cost producer 4. Everyone else has to differentiate 9. The point: 12. Unless you are the low cost producer in your industry – you will have to differentiate 
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Study Guide for Lecture 5 - Target marketing I - Study...

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