Notes Day 6 - Notes Day 6 Geodemographics Segmenting...

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Notes Day 6, 2-13-08 Geodemographics : Segmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic and lifestyle segmentation. Technology makes this possible; it didn’t exist 15-20 years ago. Used a lot in retailing. Benefit Segmentation : The process of grouping customers into market segments according to the benefits they seek from the product. Usage Rate Segmentation : dividing a market by the amount of product bought or consumed (light, medium, and heavy users.) A form of benefit segmentation, but considered separate. Used a lot with alcohol, tobacco, cell phone plans. 80/20 Principle : A principle holding that 20 percent of all customers generate 80 percent of the demand. Ex. Caffeine, fast food. Tobacco- might market to the light user, for ex, if you have a new brand. Import beer: sell to the light user because you are selling a special beer at a high price. Bases for Segmenting Business Markets 4 different entities: Producers Resellers Government Institutions 2 main characteristics of business segmenting Company Characteristics Buying Processes Company Characteristics Geographic location Type of company Company size Volume of purchases The way in which the product is used Buyer characteristics Satisficers: Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements Optimizers: Business customers who consider numerous suppliers, both
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This note was uploaded on 04/07/2008 for the course MKTG 301 taught by Professor Goldman during the Spring '08 term at UMass (Amherst).

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Notes Day 6 - Notes Day 6 Geodemographics Segmenting...

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