BK_Chapter009_Expanded

BK_Chapter009_Expanded - CHAPTER 9 Marketing Segmentation,...

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Explain the demographic approach to segmenting consumer markets. Explain the psychographic approach to segmenting consumer markets. Describe product-related segmentation. Identify the steps in the market segmentation process. Chapter Objectives Marketing Segmentation, Targeting, and Positioning CHAPTER 9 1 2 5 9 10 Identify the essential components of a market. Outline the role of market segmentation in developing a marketing strategy. Describe the criteria necessary for effective segmentation. Explain the geographic approach to segmenting consumer markets. Discuss the four basic strategies for reaching target markets. Summarize the types of positioning strategies, and explain the reasons for positioning and repositioning products. 6 3 7 4 8 0
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CHAPTER 9 Marketing Segmentation, Targeting, and Positioning Market Group of people with sufficient purchasing power, authority, and willingness to buy. • An individual’s lifestyle, income, geographic location, age, and other factors all contribute to the likelihood that person will buy certain products. Target market Group of people to whom a firm decides to direct its marketing efforts and ultimately its goods and services. • Allows firms to develop more efficient and effective marketing strategies. • Marketers must study a market to segment and communicate with it effectively. 0
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CHAPTER 9 Marketing Segmentation, Targeting, and Positioning TYPES OF MARKETS Consumer products Products bought by ultimate consumers for personal use. Business products Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale. • A product can be either, depending on its use. • Example: Tires, which can be be purchased by consumers for the family car or by General Motors for its production line. • Example: Line of professional cookware for restaurants may be adapted for home use. 0
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CHAPTER 9 Marketing Segmentation, Targeting, and Positioning THE ROLE OF MARKET SEGMENTATION • With 6.5 billion people in the world and 305 million in U.S., too many potential customers to attract with a single marketing mix. Market segmentation Division of the total market into smaller, relatively homogenous groups. CRITERIA FOR EFFECTIVE SEGMENTATION • Four basic criteria determine the effectiveness of marketing segmentation: • First, segment must have measurable size and purchasing power. • Example: Female customers account for 85 percent of all consumer purchases. 0
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CHAPTER 9 Marketing Segmentation, Targeting, and Positioning • Second, marketers must find a way to promote effectively to and serve the market segment. • Examples: Ads featuring working mothers by T-Mobile and Blackberry. • Third, segment must be sufficiently large to offer good profit potential.
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This note was uploaded on 05/24/2011 for the course MKT 327 taught by Professor Forest during the Spring '09 term at Michigan State University.

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BK_Chapter009_Expanded - CHAPTER 9 Marketing Segmentation,...

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