Marketing Ch. 9

Involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action

Are the relatively homogeneous groups of prospective buyers that result from the marketing segmentation process

Involves a firm using different marketing mix activities to help consumers percieve the product as being different and better than competing products

Forms meaningful groupings and develops specific marketing mix actions

When an organization produces only a single product or service and attempts to sell it to two or more market segments. Ex: books and magazines use different covers to target people in different areas (baseball magazines)

Is common in the automobile industry where auto makers produce different types of vehicles each target at a specific target market.

Is a variation of the multiple products and multiple markets segment. Is often called the "tiffany/wal-mart strategy.
Is when many firms offer different variations of the same thing to low and high end segments.

Tailoring goods or services to the tastes of individual customers on a high-volume scale

Build-to-order (BTO)

Manufacturing a product only when there is an order from a customer

Increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently

When segmentation and differentiation do not result in increase revenues and profits, there is nothing gained and new product take away sales from existing products

Based on where prospective customers live or work (region, city size)

Based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers

Based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers