BUAD 332 Exam 2-Mark Moon

Goal of Customer- Driven marketing strategy - Answer- to create VALUE for targeted customers Market Segmentation - Answer- Dividing a market into smaller groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. (taking heterogeneous customers and dividing them into more homogeneous groups) selecting customers to serve - Answer- - "Who is our customer?" -Selecting customers to serve using segmentation and targeting -We cannot make any other decisions as marketers until we figure this out. deciding on a value proposition - Answer- -"What do our customers think about when they think of us?" -Differentiation and Positioning Key market segmentation variables - Answer- -geographic (region, state, density, climate) -demographic (gender, age, etc) -psychographic -behavioral (no single way to segment is best. often we combine MORE THAN ONE) demographic segmentation - Answer- dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. MOST POPULAR basis for segmentation easier to measure than most variables gender segmentation - Answer- -often requires different products variations for men and women. -neglected segments can offer new opportunities Income segmentation - Answer- Identifies and targets the affluent for luxury goods.