Thursday, March 29, 2012

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.

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