MCS 1000 Chapter Notes - Chapter 9: Market Segmentation, Mass Customization, Marketing Mix

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Arsenio( Archie) Bonifacio

Document Summary

Market segments: the relatively homogenous 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. Cannibalization: when a firm creates a new product or new chain that steals customers from one of its existing products. Market-product grid: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm. Three situations that illustrate effective use of market segmentation: one product and multiple market segments, multiple products and multiple market segments, segments of one or mass customization. Geographic: segmentation based on where consumers live that can be done city-by-city or even by country. Demographic: segmentation based on population characteristics such as age, gender, income, race, education etc.