MAR 3023 Hw 6 & 7

MAR 3023 Hw 6 & 7 - Nicole Crowell MAR 3023 HW 6...

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Nicole Crowell MAR 3023 HW 6 and 7 March 29 th , 2009 Chapter 7 1. What is market segmentation and why is it an important strategy in today’s marketplace? The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics. By breaking a market into segments, marketers have a better chance of satisfying a larger consumer base. Marketers segment the market into the following 3 basic variables: Demographic: statics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation and family structure. Psychological: uses psychological and behavioral similarities such as shared activities, interests and opinions. Behavioral: how the customer acts towards, feels about or uses a product. 2. List and explain the major demographic characteristics frequently used in segmenting consumer markets? Generational Marketing: Marketers segment the generations in the following groups and market to them: Children (Age 4 to 12): this group has a $ 130 billion a year say in most family budgets. Teens (Age 12 to 17): most often called Tweens. This group is growing twice as fast. They spend an average of 3,000 per year. Generation Y consumers born between years 1977 and 1994, as a group they spend about 200 billion dollars a year. Generation X consumers are generally born between years 1965 and 1976 as a group they have developed an identity as being an entrepreneurial group. Baby Boomers consumers are born between years 1946 and 1964, as a group they are an important segment to the market as they make a lot of money. Metrosexual: a man that is heterosexual, sensitive, educated urban dweller who is in touch with his feminine side. While many may disagree and be reluctant to identify with this description, a renewed interest in personal care products, fashion accessories and other formerly feminine product categories is creating many marketing opportunities. Family Life Cycle: as families’ age and move into the new life stages, buying trends and patterns show that certain products ascend and descend in importance.
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Race and Ethnicity: African Americans make up 12 percent of the US population and as this market has been steadily growing over the last 20 years marketers have found ways to market to this important group. Asian Americans, although they have been a smaller minority group is the fastest growing minority group. Hispanic Americans are a sleeping giant, a segment that until recently the market has largely ignored. Hispanic Americans are the largest minority group in the US and command over 400 billion dollars of the market power. 3. Explain consumer psychographic segmentation. Marketers segment the population through psychographics. One of the
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MAR 3023 Hw 6 & 7 - Nicole Crowell MAR 3023 HW 6...

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