Opening Vignette Questions 1. Individual marketing has also been labeled one-to-one marketing, mass customization, and markets-of-one marketing. Gender Starting with diapers, segmenting by sex occurs at a very early age.
Marketers also use personality variables to segment markets.A segment is less attractive if it already contains many strong and aggressive competitors. Do you agree with Este Lauders strategy of segmenting its markets? Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Psychographic Segmentation Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. For example, brides are an accessible segment because of the many bridal magazines. Accessible: The market segments can be effectively reached and served. Furniture is a product category that varies with the family life cycle. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Geographic location: Nations close to one another will have many common traits and behaviors. A concentrated strategy is often useful for smaller firms that do not have the resources or the desire to be all things to all people. The company also needs to examine major structural factors that affect long-run segment attractiveness. Usage Rate means grouping markets into light, medium, and heavy product users. There are few media vehicles targeted at men getting married, so their accessibility is poor.
Summary chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers Essay Summary chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers Essay Chapter Overview This chapter looks further into key customer-driven marketing strategy decisions—how to divide up markets into meaningful customer groups segmentationchoose which customer groups to serve targetingcreate market offerings that best serve targeted customers differentiationand position the offerings in the minds of consumers positioning.
Substantial: The market segments are large or profitable enough to serve. The existence of many actual or potential substitute products may limit prices and the profits.
Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Loyalty Status means dividing buyers into groups according to their degree of loyalty. If so, how?