MGCR 352 Chapter Notes - Chapter 9: Market Segmentation, Mass Customization, Marketing Mix

• School: McGill University
• Department: Management Core
• Course: MGCR 352
• Professor: Fabienne Cyrius

Document Summary

Putting people into groups that 1) have common needs 2) will respond similarly to a marketing action. Marketing segments: the relatively homogeneous groups of prospective buyers that result from the market segmentation process. Product differentiation: strategy that involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different from and better than competing products. Segmentation: linking needs to actions, segmentation is a means to an end: to lead to tangible marketing actions that can increase sales and profitability. A framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. A marketing manager should develop market segments that meet five main criteria: Similarity of needs of potential buyers within a segment. Potential of a marketing action to reach a segment. Simplicity and cost of assigning potential buyers to segment.