MGMA01H3 Chapter Notes - Chapter 8: Shoppers Drug Mart, Market Segmentation, Psychographic
Document Summary
Companies today cannot appeal to all buyers in the marketplace; need to use target marketing. Market segmentation: dividing market into smaller segments of buyers with distinct needs, characteristics, or behaviors that may require separate marketing strategies or mixes. Market targeting: process of evaluating each market segments attractiveness and selecting one or more segment to enter. Differentiation: differentiating firm"s market offering to create superior customer value. Position: arranging for market offering to occupy place relative to competing products in consumers mind. Buyers in any market differ in; companies segment large markets into smaller ones and effectively reach consumers. Dividing market into different geographical units, such as nations, regions, provinces, or even neighborhoods. Variables include: world region or country, country region, city or metro size, density and. Most popular bases for segmentation because (1) consumer needs and wants vary closely with demographic variables and (2) are easier to measure. Variables include: age, gender, family size, family lifecycle, income, occupation, education,
