MKTG 341 Chapter Notes - Chapter 8: Marketing Mix, Product Differentiation, Mass Customization
Document Summary
A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers and thus increases its sales and profits. Market segmentation- involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. Market segments- the relatively homogeneous groups of prospective buyers that results from the market segmentation process. Product differentiation- the existence of different market segments; this strategy involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. *perceived differences may involve physical features such as size, or color or nonphysical ones such as image or price. Process of segmenting a market and selecting specific segments as targets is think link between the various buyers needs and the organizations marketing program. It leads to tangible marketing actions that can increase sales and profitability.