MKTG101 Lecture Notes - Lecture 6: Market Segmentation, Customer Relationship Management, Geodemographic Segmentation
15 Mar 2020
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Document Summary
A group of customers with heterogeneous needs and wants. Consumers and businesses vary considerably in their needs, wants and demands, and it is virtually impossible for an organisation to successfully appeal to every consumer or business. Buyers have unique wants, needs and demands. Subgroups within the total market that are relatively similar in regard to certain characteristics. Buyers have common wants, needs and demands. A single product will meet the needs of most people in the market, with an undifferentiated approach. Producing large volumes at a low cost per unit (due to economics of scale") makes it possible to sell at a low price and capture very large markets, ensuring high levels of profitability. Providing a unique, customised offering to meet individual customer needs. A one-to-one approach often results in higher unit costs and a more restricted market. One-to-one conditions typically form the basis for a focus or niche strategy. Many small services businesses take one-to-one marketing approach e. g. hairdressers.
