MKTG 322 Lecture 4: Lecture 4
30 Jan 2017
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Ex) shoe customization, wanted exact aggie colors, went to new balance to customize. Don"t make all products like this because it"s harder to mass produce. Market aggregation/mass marketing (homogenous market: lower costs, undifferentiated product, economies of scale. Market segmentation/market of one (heterogeneous market: higher revenue, take larger market, break down into groups of people with common sets of needs and desires. Different benefits: helps create product to exactly what we"re looking for. Segment break a mass market into submarkets of customers with common needs. Competition, growth of profitability potential, barriers to entry. Position identify possible positioning concepts for each target segment: select, develop, signal and maintain the chosen positioning concept. 3) if more than one target segment is desirable, marketer is willing to design different marketing strategies and tactics for each segment: believe they want different things, actually willing to do something different for that group.
