1) What is meant by
(I) Market segmentation
Market segmentation is a marketing strategy, which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them
A products is any goods, service that are offered to the market to satisfy consumer’s needs
2) Describe all 4 types of consumer behavior with 2 examples for each. Complex
High involvement in the purchase while perceiving a significant difference among brands. Products that consumer will not purchase often cause it is expensive. Rolex watches, Diamond, Cars
Low involvement, have the tendency of changing new brand preferences because of the brand have significant perceived differences. Cookies, energy drinks and other luxury food items.
Consumer often look at several brands and prices and then will purchase because of convenience price but with little or no perceived differences. Computer (Dell, HP, Acer, Mac)
Consumers will purchase the items often and they will typically buy a particular brand out of habit Salt.
3) Describe 2 benefit of product strategy.
Helps create value and brand loyalty. In terms of creating value, a company uses a differentiation strategy that focuses on the cost value of the product versus other similar products on the market; it creates a perceived value among consumers and potential customers. Furthermore, a successful product differentiation strategy creates brand loyalty among customers. The same strategy that gains market share though perceived quality or cost savings may create loyalty for consumers. The company must also continue to deliver proper value to consumers to maintain customer loyalty.
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