COMM 296 Chapter Notes - Chapter 8: Geodemographic Segmentation, Psychographic, Profit Margin
Document Summary
Segmentation, targeting, and positioning (1) identify the five steps in the stp process. Step 1: establish overall strategy or objective: segmentation strategy should be consistent with and derived from firm"s mission and objectives, and current situation (swot) (2) outline the different methods of segmenting a market. More useful in predicting consumer behavior than demographics. Loyalty segmentation: strategy of investing in loyalty initiatives to. Occasion segmentation: behavioral segmentation based on when a: behavioral segmentation: divide customers into groups based on how they (3) describe how firms determine whether a segment is attractive and therefore worth pursuing. Segment profitability = (size * adoption percentage * purchase: reachable: how reachable will information be for the market, profitable: potential profitability for both current and future behavior * profit margin percentage) fixed cost. Adoption percentage = % of customer in segment who are likely to use product/service buy the product/service in a year. Purchase behavior = purchase price * # of times customer will.
