MKT 337 Chapter Notes - Chapter 9: Zappos, Market Segmentation, Mass Customization
Document Summary
A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers and thus increase its sales and profits. Market segmentation involves aggregating prospective buyers into groups that (1) have common needs and(2) will respond similarly to a marketing action. Market segments: the relatively homogenous groups of prospective buyers that result from the market segmentation process. Each market segment contains people that are similar in consumption behavior. Existence of different market segments has caused firms to use a marketing strategy of product differentiation. Take steps to segment and target markets. A marketing mix in terms of the 4 p"s. Target customers consists of people who want (1) a wide selection of shoes, (2) to shop online in the convenience of their own home, and (3) to receive the guarantee of quick delivery and free returns. By meeting these requirements, zappos has developed a positive consumer experience and generated repeat purchases.
