Marketing Golden Chapter 10

MARKET• Consumer –vs- Organizational• 4 Requirements

–Need or desire for a specific product

–Ability to purchase–Willing to use buying power–Authority to buy

Marketing Golden Chapter 10

KEY CONCEPTS• Homogeneous Market: Similar needs.• Heterogeneous Market: Diverse needs.• Market Segmentation: Process of

segmenting.• Market Segment: Groups that have one

or more similar characteristics that make them have similar needs. (e.g., children 7 to 12 years old)

Marketing Golden Chapter 10

TARGETING STRATEGY

•Undifferentiated

•Concentrated

•Differentiated

Marketing Golden Chapter 10

CONSUMER SEGMENTATION

VARIABLES

• Demographic Variables• Geographic Variables• Psychographic Variables• Behavioristic Variables

Marketing Golden Chapter 10

CONSUMER SEGMENTATION VARIABLES: DEMOGRAPHICSDEMOGRAPHICS

•Age•Gender•Race•Ethnicity•Income•Education

•Occupation•Family size•Family life

cycle•Religion•Social class

Marketing Golden Chapter 10

CONSUMER SEGMENTATION

VARIABLES: GEOGRAPHICGEOGRAPHIC

•Region•Urban/Suburban/Rural

•City size•County size

•State size•Market density

•Climate•Terrain

Marketing Golden Chapter 10

CONSUMER SEGMENTATION

VARIABLES: PSYCHOGRAPHICPSYCHOGRAPHIC

•Personality•Motives•Lifestyles

–Activities, Interests, and Opinions

Marketing Golden Chapter 10

CONSUMER SEGMENTATION

VARIABLES: BEHAVIORISTICBEHAVIORISTIC

• Volume usage• End use• Benefit expectations (sometimes classified as

psychographic)• Brand loyalty• Price sensitivity