MKT 305 Midterm 2 (Module 6 Market Segmentation/Target Markets)

Heterogeneous Demand (Markets and Target Marketing)

Different Groups of Customers have Differing Needs from Products

Market Segmentation (Markets and Target Marketing)

The Separation of Markets into Distinctive Groups Based on Homogeneous Characteristics

Target Market (Markets and Target Marketing)

The Specific Group of Customers Towards which a Firm Directs its Marketing Efforts

Niche and Mass Markets (Mass Markets Vs Individual Customers)

Mass Markets: The Market as a Whole (Entire Circle)

Niche Markets: A Mass Market Broken into Segments

Micro-Market (Mass Markets Vs. Individual Customers)

Micro-Markets: A Niche Market Thats Further Segmented

Advantages of Segmentation (Mass Markets Vs. Individual Customers)

Better understand potential and actual consumers

Develop and Implement a Marketing Mix Tailored to a Specific Market

Assess Potential Demand

Identify Competing Products in Specific Markets

Allows Firms to Position Products

Allows Firms to Identify Opportunities

Downsides of Segmentation (Mass Markets Vs. Individual Customers)

More Expensive

Proliferation of Products that Becomes Overly Burdensome and Costly to Manage

Too small Niches may be Viewed Cynically

Requires a lot of Data

Reinforces Stereotypes

Segmentable Markets Are… (Criteria for Market Segmentation)

Heterogeneous (Demand)

Measurable (Identifiable)

Substantial (Size and Purchasing Power)

Actionable (Must be Able to Respond with an Appropriate Marketing Mix)

Accessible (Market Must be Efficiently Reachable)

Undifferentiated Targeting Strategy (Mass Markets Vs Individual Customers)

Mass Marketing Strategy

Concentrated Strategy (Mass Markets Vs Individual Customers)

Going after one Segment in a Segmented Market

Differentiated Strategy (Mass Markets Vs. Individual Customers)

Going after all Market Segments

Demographic (6 Key Ways to Segment)

Most Popular

Age, Education, Ethnicity, Income, and Family Life Cycle

Geographic (6 Key Ways to Segment)

Based on Region or Location

Psychographic (6 Key Ways to Segment)

Grouping based on Social Class, Lifestyle, and Psychological Characteristics

Benefit-Sought (6 Key Ways to Segment)

Benefits Consumer Desires from using a Specific Product

Situational (6 Key Ways to Segment)

Purchase Situation or Occasion

Physical Surroundings (Beach)

Social Surroundings (Date Vs Friends)

Temporal Perspective (How Much Time to make a Purchase? [Fast Food])

Task Definition (Wedding Gift Vs Yourself)

Pre-Purchase Attitude

Behavior/Usage (6 Key Ways to Segment)

80/20 Principle: 80% of Revenue is Generated from 20% of Customers

Effective Positioning (Positioning and Key Positioning Strategy)

What Customers Currently Think about the Product, Especially in Relation to Competing Products

What a Marketer wants Consumers to think About the Product

Differentiation Strategy (Positioning and Key Positioning Strategy)

Price/Quality

Product Attributes that Lead to Benefits

Product Users

Product Class (Usage)

Competition

Repositioning: The Process of Creating a New Image about an Existing Products in Consumers Minds