Chapter 8 key points
* To develop the best marketing plans, managers need to understand what makes each segment unique and different. * Effective target marketing requires: market segmentation; market targeting, and market positioning. * A market segment consists of a group of customers who share a similar set of needs and wants. Market segments are generally defined by looking at descriptive characteristics or behavioral considerations. * Geographic segmentation divides the market into geographical units such as nations, cities, neighborhoods etc. * Demographic segmentation is divided on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class. * Psychographic segmentation is the science of using psychology and demographics to better understand consumers. * The three largest multicultural markets are Hispanic Americans, African Americans, and Asian Americans. Hispanic Americans are the largest minority in the country with over $1trillion worth of purchasing power. * Companies are finding their markets as hourglass shaped as middle market U.S. consumers migrate toward both discount and premium products. * Baby Boomers represent a wealthy target segment, possessing $1.2 trillion in annual spending power. * Consumers are inspired by one of the three primary motivations: ideas, achievement and self-expression. * People play five roles in a buying decision: initiator, influencer, decider, buyer, and user. * We can segment business markets with similar variables we used in consumer markets. However the demographic variables are the most important. * B2B marketing experts James C. Anderson and James A. Narus have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts: a naked solution and a discretionary option....
Please join StudyMode to read the full document