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Flashcards in Market Segmentation Deck (7)
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1

Market Segmentation

Aggregating buyers into groups that have common needs and will respond similarly to marketing action

-Marketing Mix can be applied to segment as a whole (Product, Price, Promotion and Place)

Product Differentiation Strategy = have consumer perceive the product as being different and better than competing products (uses Mix)

2

Segment's must have...

Identity

Systematic Behaviors = not a one time way of reacting to a product or service, it is their typical approach

Profitability = segment must be able to make $

3

Three-Levels of Segmentation

1) Personal Characteristics (Demographics & Psychographics)

2) Behavior

3) Benefits

4

Personal Characteristics

Demographics = based on objective, measurable classification or attribute

Psychographics = personality and lifestyle, subjective, mental, emotional attributes

5

Behavior

Behavior = based on observable actions by customers, what someone does, how they act, how often they use products, how often they buy , brand loyalty, etc.

Maximizer = never satisfied, "only the best"

Satisficer = easily satisfied, "good enough"

6

Benefits

Benefits = Segmenting based on needs rather than characteristics of the customer themself

Two types: Functional & Emotional

7

Concentrated Segment

Segments that have segments within them Ex) Cars: Sports, Luxury, Hybrid, Compact