Summary principles of marketing chapter 7

Marketing

Chapter 7

Market segmentation:
- Dividing a market into smaller segments
o Consumer markets
 Geographic: divide into geographic units like nations, regions, states,
countries or cities
 Demographic: divide based on variables like age, gender, family size,
income, occupation, education, religion
 Psychographic: divide based on social class, lifestyle or personality
 Behavioural: based on knowledge, attituded, uses or responses. But
also occasions, benefits sought, user status, usage rate, loyalty status
o Business markets
 Operating characteristics
 Purchasing approaches
 Situational factors
 Personal characteristics
o International markets
 Geographic
 Economic
 Political
 Cultural

Requirements for effective segmentation:
1. Measurable
2. Accessible
3. Substantial
4. Differentiable
5. Actionable

Multiple segmentation is used to identify smaller, better-defined target group

Market targeting:
- Select the segment or segments to enter
- Evaluating each segment

Differentiation:
- Differentiating the market offering to create superior customer value

Positioning:
- Competing products in the minds of consumers
o Perceptions
o Impressions
o Feelings