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Unformatted text preview: Marketing 310 Chapter 9 Identifying Market Segments and Targets Market Segmentation Involves aggregating prospective buyers into groups that: 1. Have Common Needs 2. Will Respond Similarly to a Marketing Action Market Segments The group that results from market segmentation is a relatively homogenous collection of prospective buyers Product Differentiation In the broadest sense, product differentiation involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. In a narrower sense, product differentiation involves a firm selling two or more products with different features targeted to different market segments. Needs vs. Action 1. Identify Market Needs a. Product Features b. Expense c. Quality d. Savings in time and conveniences 2. Segment the Market 3. Execute Marketing Program (Mix of 4 P’s: Product, Price, Place, and Promotion) Market-Product Grid A framework to relate the segments of a market to products offered or potential marketing actions by the firm. It consists of A framework to relate the segments of a market to products offered or potential marketing actions by the firm....
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- Spring '08
- Marketing, 20 percent, market segments, 80 percent