Psychographic Segmentation of Global Markets look at it in the textbook Six

Psychographic segmentation of global markets look at

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Psychographic Segmentation of Global Markets (look at it in the textbook) - Six Psychogrpaic consumer segments that exist in 35 countries: 1. Stivers: value professional and material goals 2. Devouts: value duty and tradition 3. Altruists: emphasize social issues and societal well being 4. Intimates: value family and personal relationships 5. Fun Seekers: focus on personal enjoyment and pleasurable experiences 6. Creatives: seeks educations, technology and knowledge Wednesday October 2 st 2013 Chapter 8 Product related Segmentation Division of a population into homogeneous groups based on their relationship to the product Segmenting by Benefits Sought - Focuses on the benefits people expect from using the product Segmenting by Usage Rates - 80/20 principle (Praedo’s law)- large percentage of revenues comes from a small, loyal percentage of customers - Marketers may target heavy, moderate, and light users or nonusers Segmenting by Brand Loyalty - Grouping customers according to the strength of their product loyalty - Shoppers is very concerned about their loyalty its much cheaper to keep an old customer then it is to get a new customer Using Multiple Segmentation Bases - Flexibility helps marketers increase their accuracy in reaching the right markets - Goal is getting to know potential customers better and satisfying their needs with appropriate goods and services The Market Segmentation Process 1. Develop a relevant profile for each segment - In that space or in that market, its consider profiling 2. Forecast Market potential - How big is the market 3. Forecast probable market share - How much is the market worth 4. Select specific market segments - Pick them which one do you want to go after first Strategies for Reaching Target Markets
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Undifferentiated Marketing : focuses on producing a single product and marketing it to all customers; also called mass marketing Differentiated Marketing : focuses on producing several products and pricing, promoting and distributing them with different marketing mixes designed to satisfy smaller segments Concentrated Marketing : focusing marketing efforts on satisfying a single market segment; also called niche marketing Micromarketing : targeting potential customers at very narrow basic levels such as by postal code, specific occupation or lifestyle possible even individuals themselves Selecting and Executing a Strategy Basic determinants of marketing strategy: - Company resources : a firm with limited resources may have to choose a concentrated marketing strategy - Product homogeneity : - Stage in the product lifestyle : the firms strategy may also change as its product progresses through the stages of the product life - Competitors’ strategies : a firm may encounter obstacles to undifferentiated marketing if its competitors actively cultivate smaller segments Positionin g: Placing a product at a certain point or location within a market in the minds of prospective buyers Midterm 25% of the course 80 minutes
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