MKT 100 Lecture Notes - Lecture 7: Psychographic, Swot Analysis, Profit Margin

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Lecture 7&8 chapter 6: segmentation, targeting, and positioning. The strategy (cid:373)ust (cid:271)e (cid:272)o(cid:374)siste(cid:374)t (cid:449)ith the fir(cid:373)"s mission and with the swot. There is a formal approach to segment markets, and this step de(cid:448)elops des(cid:272)riptio(cid:374)s of differe(cid:374)t seg(cid:373)e(cid:374)ts" needs, wants and characteristics to help the firm better understand them. Multiple segmentation may be used too: geodemographic segmentation like psyte clusters. Must determine if the segment is worth pursuing. Identifiable: firms must know who is in their market to determine what products/services are needed to fit consumer needs/wants. Reachable: consumers must know that the product/service exists and understand the steps to attain it. Substantial and profitable: firms have to measure growth of the segment. Segment profitability = (segment size x segment adoption percentage x purchase behaviour x profit margin percentage) fixed costs. The key factor that can affect this step is the (cid:373)arketer"s ability to pursue an opportunity.