Chapter 7: Segmenting and Targeting Markets

Chapter 7: Segmenting and Targeting Markets
February 8, 2012

Definitions:

Market Segmentation- the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.

Marketers commonly use one of the following characteristics to segment markets:

1. Demographic Segmentation- age, gender, income, ethnic background, and family life cycle.

2. Geography Segmentation- segmenting markets by region of a country or the world, market size, market density, or climate.

3. Psychographics- market segment on personality, motives, lifestyles, and geodemographics variables.

4. Benefits- process of grouping customers into market segments according to the benefits they seek from the product.

5. Usage rate- divides market by the amount of product bought or consumed.

"Six Steps to a Segment"

1. Select a market or product category for study.

2. Choose a basis or bases for segmenting the market.

3. Select segmentation descriptors.

4. Profile and analyze segments.

5. Select target markets.

6. Design, implement, and maintain appropriate marketing mixes.

Chapter 5: Consumer Decision Making

Chapter 5: Consumer Decision Making
February 1, 2012

Definitions:

Consumer Behavior- processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.

Cognitive Dissonance- the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Consumer Decision-Making Process- a five step process used by consumers when buying goods or services.

5 steps of consumer decision-making process:

1.       Need recognition (stimulus or want)

2.       Information search (internal or external)

3.       Evaluation of alternatives (narrow the number of choices)

4.       Purchase (make the purchase or not?)

5.       Post purchase behavior (judging the product)

Maslow’s Hierarchy of Needs- explains why people are driven by particular needs at particular times.

~My favorite part of this chapter was learning the definition of ‘cognitive dissonance’. I have that feeling more often than I should.

Chapter 3: Social Responsibility, Ethics, & the Marketing Environment

Chapter 3: Social Responsibility, Ethics, & the Marketing Environment

January 25, 2012

Definitions:

Corporate Social Responsibility- business's concern for society's welfare.

Target Market- a defined group most likely to buy a firm's product.

Demography- the study of people's vital statistics, such as their age, race, and ethnicity, and location.

Ethics- the moral principles or values that generally govern the conduct of an individual or a group.

Morals- the rules people develop as a result of cultural values and norms.

Code of Ethics-a guideline to help marketing managers and other employees make better decisions.

Pyramid of Corporate Social Responsibility- a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure.

~Demography was the most important concept in this chapter. It's important to study the different generations (Tweens, Generation Y, Generation X, Baby Boomers) so you know where you need to target your market for the product.

Chapter 1: An Overview of Marketing

Chapter 1: An Overview of Marketing
January 18, 2012
Definitions:

Marketing- the activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients.
Marketing Concept- the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objects.

Customer Value- the relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer Satisfaction- Customers' evaluation of a good or service in terms of whether it has met their needs and expectations.

The 4 "P"s of Marketing-

1. Promotion
2. Product
3. Price
4. Place


The 4 Marketing Management Philosophies:

Production- What can we make or do best?
Sales- How can we sell more aggressively?
Market- What do customers want and need?
Societal- What do customers want and need, and how can we benefit society?


~The concept that was the most informative and intriguing to me is the 4 "P" of Marketing. Professor told us that we will be using the 4 "P"s not only throughout this class, but in the life of marketing. All marketing deals with one the 4.