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Flashcards in Exam 2 Deck (11)
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1

Market Segmentation

Grouping Customers into relatively homogeneous sets or groups

2

Advantages of Market Segmentation

Effective means for reaching customer groups
Helps in allocation marketing resources
Identifies market opportunities for the company

3

Geographic Segmentation

Differences in geographic regions, population, climate

4

Demographic Segmentation

Differences in age, gender, income, education, social class, family, religion, ethnicity

5

Psychographic Segmentation

Differences in personality, motives, or lifestyle

6

Behavioral Segmentation

Differences in the core benefits customers seek, usage, brand loyalty, price sensitivity

7

Brand-loyal Shoppers

High brand sensitivity and low price sensitivity
Willing to pay as much as necessary

8

Deal Shoppers

High brand sensitivity and high price sensitivity
Purchase leading brands at a discount

9

Price Shoppers

low brand sensitivity and high price sensitivity
Purchase the lowest-price products regardless of brand

10

Convenience Shoppers

Low Brand sensitivity and Low price sensitivity
Maximize their velocity through shopping environments

11

Characteristics of good segmentation plans

Measurable - Individuals assigned and counted
Accessible - reached
Durable - constant
Substantial - Large enough profit
Unique needs - Homogeneous and heterougenous