MGCR 352 Lecture Notes - Lecture 3: Psychographic, Mass Customization, Product Differentiation

• School: McGill University
• Department: Management Core
• Course: MGCR 352
• Professor: Fabienne Cyrius

Document Summary

Market segmentation: li(cid:374)ki(cid:374)g (cid:373)arket (cid:374)eeds to a(cid:374) orga(cid:374)izatio(cid:374)"s (cid:373)arketi(cid:374)g progra(cid:373) Market segments: relatively homogeneous segments that result from the market segmentation process. These segments have similar needs and will respond similarly to a marketing action. Product differentiation: use of different marketing mix activities to help consumer perceive product as being better and different from competition. When should a market be segmented: one product & multiple market segments (movies, multiple products & market segments (automobile industry, segments of one (mass customization) Cannibalization: when a new product or store steals customers away from your other products or stores because of similar target markets. Similarity of needs of potential buyers within a segment. Difference of needs of potential buyers within a segment (if small group multiple segments into one, if high profit has to be higher than the additional cost in advertising,etc) Potential of marketing actions to reach a segment. Simplicity and cost of assigning potential buyers to segment.