MCS 1000 Chapter Notes - Chapter 9: Mass Customization, Product Differentiation, Market Segmentation

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

Companies segment markets because people are different (have different needs and wants) Segment so they can respond to specific needs and wants of groups of potential buyers increase sales and profits. Market segment: relatively homogeneous groups of prospective buyers that result from the market segmentation process. Consists of people who are relatively similar to each other (in terms of consumption behaviour) Product differentiation: firm using different marketing mix activities (product features, advertising) to help consumers perceive the product as being different from and better than competing products. Market-product grid: framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. Avoids extra costs of developing and producing additional versions of the product. High expenses but not as high as costs of developing an entirely new product. Expenses establishing a new channel of distribution, creating a separate promotional campaign. Tailoring goods and services to the tastes of individuals on high volume scale.