Chapter 7-Fa10 - Chapter 7 Sharpening the Focus Target...

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Chapter 7 Sharpening the Focus Target Marketing Strategies and Customer Relationship Management I. Entering a Market A. Today market fragmentation makes is more difficult to enter a market because there are many different consumer groups. This condition occurs because people’s diverse interest and backgrounds divide them into numerous different groups with distinct needs and desires. Because of this diversity, the same good or service will not appeal to everyone. B. Instead of trying to sell something to everyone marketers pick a target market strategy, which divided the total market into different segments based on customer characteristics selecting one or more segments and developing products to meet the needs of those specific segments. II. Steps in Selecting and Entering a Market A. Step 1: Segmentation B. Step 2: Targeting C. Step 3: Positioning Market Segmentation Definition of segmentation– it is the process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristics. To do this marketers must decide on one or more useful segmentation variables, dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences. Segmenting Consumer Markets: Demographically Gender Age groupings Family Structure Socio-economic Race and ethnicity Geography Psychographics Attitudes Interests Opinions MP-Chapter 7 pg.1
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Behavior Acting Good Feeling Service Using Demographically – statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation and family structure. Age (see Age Demographics Excell spreadsheet) Gender – differences between male and female Metrosexual – a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side. Has a strong aesthetic sense and spends a great deal of time and money on his appearance and lifestyle. Family Structure - Use to be birth, early childhood, teenagers, young single, adults, married, parents, empty nest, seniors - now we have single parents, same sex marriages, etc. Income and social class - prestige products for rich and famous - Dollar General for women in rural areas with lower family income Race and Ethnicity - African Americans, Hispanic Americans, Asian Americans are the 3 fastest growing ethnic groups in the U.S. - Hispanics tend to be brand-loyal, especially to products made in their country of origin - Hispanics tend to be highly concentrated by national origin, which makes it easy to fine tune the marketing mix to appeal to them - Hispanic segment is young (median age is 23.6 compared to U.S. average of 32)
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This note was uploaded on 06/05/2011 for the course ACCT 323 taught by Professor Eubanks during the Spring '11 term at Athens University of Econ and Bus.

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Chapter 7-Fa10 - Chapter 7 Sharpening the Focus Target...

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