MKTG 2030 Lecture Notes - Lecture 3: Market Segmentation, Psychographic, Meal Replacement
Document Summary
The opposite of market segmentation is mass marketing , a concept that ignores customer needs. A mass marketer decides not to recognize customer needs by providing all customers with only one offer. Business success depends on segmenting markets in a way that is different from competitors and then selecting the best target segments to serve. Supermarkets and drug stores require manufacturers to pay for putting products on the shelf ( a process known as listing fees ), which can get very expensive for a smaller player. Danger #1: the business ignores customer needs and treats all customers the same. Not segmenting customers means that the business chooses to ignore the fact that different customers have different needs. As a result the business tries to become a mass marketer - offering all customers the same value proposition. No one is satisfied by this and there"s room for competitors to enter the market and fulfill needs.
