ARBUS302 Lecture Notes - Lecture 6: Market Segmentation, Product Differentiation, Marketing Mix
16 Dec 2019
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Document Summary
Market segments are relatively homogeneous groups of prospective buyers that result from the market segmentation process: each market segment contains people who are relatively similar to each other in terms of their needs and consumption behaviour. Product differentiation involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different from and better than competing products. In summary, market segmentation groups people in a market segment according to the similarity of their needs and wants. The organization takes marketing actions to satisfy the needs of each segment by creating slightly differentiated products/services. The marketing actions may involve different aspects of the marketing mix, such as price, product"s features, advertising (promotion), or distribution (place) strategies. Market-product grid: a chart in which the consumer segments are represented in rows whereas differentiated products are presented in the columns. In each cell, the estimated market size of the segments is shown.
