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Unformatted text preview: Chapter 7-13 review Customer driven marketing strategy steps: market segmentation, target marketing, and market positioning Types of segmentation: 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 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. It is 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 Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female) Income segmentation divides the market into affluent or low-income consumers 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 Benefits sought User status Usage rate Loyalty status Occasion segmentation divides buyers into groups according to occasions when they get the idea to buy, actually make purchases, or respond to a product Benefit segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit Intermarket segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries Multiple segmentation is used to identify smaller, better-defined target groups Geodemographic segmentation is an example of multivariable segmentation that divides groups into consumer lifestyle patterns Brand/Brand names; Brand: a name, term, sign, symbol, or design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those competitors. Requirements for effective segmentation: Measurable: examples include the size, purchasing power, and profiles of the segments Accessible: refers to the fact that the market can be effectively reached and served Substantial: refers to the fact that the markets are large and profitable enough to serve Differentiable: refers to the fact that the markets are conceptually distinguishable and respond differently to marketing mix elements and programs Actionable: refers to the fact that effective programs can be designed for attracting and serving the segments...
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- Spring '08