Marketing Exam 2 Study Guide

Marketing Exam 2 Study Guide - Exam 2 Study Guide Module 5...

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Exam 2 Study Guide Module 5 Market Segmentation – is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. (Examples: senior citizen market, Hispanic markets, or college student market) Market Targeting - Market Positioning - Bases for Segmenting Consumer Markets (4) Geographic Segmentation – divides the market into different geographical units such as nations, regions, states, counties or cities. Demographic Segmentation – divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. *The most popular segmentation method because consumer needs, wants, and usage often vary closely with demographic variables and are easier to measure than other types of variables. Psychographic Segmentation – divides buyers into different groups based on social class, lifestyle, or personality traits Behavioral Segmentation – divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasion – divides buyers into groups according to occasions when they get the idea to buy, actually make purchases, or respond to a product. (ex: OJ) Benefits sought – requires finding the major benefits people look for in product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit. (ex. Toothpaste) User status – divides buyers into ex-users, potential users, first-time users, and regular users of a product Usage rate – divides buyers into light, medium, and heavy products users. (ex: cigarette smokers) Loyalty status – divides buyers into groups according to their degree of loyalty. Requirements for Effective Market Segmentation (4)
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Measurable – examples include the size purchasing power, and profiles of the segments – degree to be measured Accessible – refers to the fact that the market can be effectively reached and served Sustainable – refers to the fact that the markets are large and profitable enough to serve Actionable – refers to the fact that effective programs can be designed for attracting and serving the segments 4 Options for Selecting Market Segments Undifferentiated – marketing targets the whole market with one offer (ex: Hershey bar) o Mass Marketing o Focuses on common needs rather than what’s different Differentiated – marketing targets several different market segments and designs separate offers for each (ex: Hellman’s mayonnaise) o Goal is to achieve higher sales and stronger position o More expensive than undifferentiated marketing Concentrated – marketing targets a small share of a large market o Limited company resources o Knowledge of the market o More effective and efficient Micromarketing – is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
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This note was uploaded on 03/19/2012 for the course MAR 3023 taught by Professor Any during the Fall '08 term at FIU.

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Marketing Exam 2 Study Guide - Exam 2 Study Guide Module 5...

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