test 2 - Chapter 8 Market Segmentation o Market-people or...

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Chapter 8 Market Segmentation o Market-people or organization with needs or wants with the ability and willingness to buy o Market segment-a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs o Market segmentation-the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups; helps marketers define customer needs and wants more precisely; more accurately define marketing objectives and better allocate resources Criteria for successful segmentation o Enables marketers to identify groups with similar needs, provides marketers with information to help them design marketing mixes, consistent with the marketing concept of satisfying customer wants and needs while meeting the organization’s objectives o Substantiality- a segment must be large enough to warrant developing and maintaining a special marketing mix o Identifiability and measurability o Accessibility- firm must be able to reach members of targeted segments with customized marketing mixes o Responsiveness- unless one market segment responds to a marketing mix differently from another market segment, that segment need not be treated separately Bases for Segmenting Consumer Markets o Characteristics of individuals, groups, or organizations o Geographic Segmentation Segmenting markets by region of a country or the world, market size, market density, or climate o Demographic Segmentation Segmenting markets by age, gender, income, ethnic background, and family life cycle Age: new borns, infants, young children, tweens(technology savvy and social conumsers), Generation Y(formidable purchasing power; trendy, tend to change their minds quickly, aware of marketing strategies), Generation X(disloyal to brands, desire an experience not just a product), baby boomers(represent half of all the spending in the U.S.), seniors Gender:women handle 75% of family finances influence 80% of consumer purchases Income:high income shoppers are looking for luxury and want outstanding customer service; companies create basic products to attract low-income customers Ethnic segmentation: companies develop multicultural marketing initiatives designed to better understand and serve the wants and
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preferences of U.S. minority groups; largest ethnic markets- Hispanic American, African American, Asian American Family Life Cycle:series of stages determined by a combination of age, marital status, and the presence of absence of children o Psychographic Segmentation Market segmentation on the basis of personality, motives, lifestyles, and geodemographics Personality- reflects a person’s traits, attitudes, and habits Motives-consumers emotional motives Lifestyles-divides people into groups according to the way they spend their time, the importance of things around them, their beliefs, and socioeconomic characteristics Geodemographic-clusters potential customers into neighborhood
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test 2 - Chapter 8 Market Segmentation o Market-people or...

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