Massmarketing -- seller engages in the mass production, mass distribution, and mass promotion of one product for our buyers.
Argument for massmarketing -- creates largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins
argument against massmarketing -- increasing splintering of the market. Diverse advertising and distribution channels increases difficulty and expense is to reach mass audiences.
Most companies are turning to micro marketing at one of four levels:
Marketers do not create the segments -- the marketers task is to identify the segments and decide which ones to target.
Flexible market offering -- consists of two parts: a naked solution containing the product and service elements at all segment members value, and discretionary options that some segment members value
Market segments can be defined in many different ways.
Identify preference segments.
Homogeneous preferences -- market where all the consumers have roughly the same preferences
diffused preferences -- consumers vary greatly in their preferences
clustered preferences -- market reveals distinct preference clusters, called natural market segments
Niche marketing -- narrowly define customer group seeking a distinctive mix of benefits. Globalization has facilitated niche marketing.
Marketers usually identify niches by dividing a segment into sub segments. As marketing efficiency increases, niches that were seemingly too small may become more profitable.
Local marketing -- marketing programs tailored to the needs and wants of local customer groups such as trading areas, neighborhoods, and individual stores.
Local marketing reflects a growing trend called grassroots marketing. Marketing activities concentrate on getting as close and personally relevant to individual customers as possible. A large part of local, grassroots marketing is experimental marketing, which promotes a product or service not just by communicating its features and benefits, but also connecting it with unique and interesting experiences.
Customerization -- ultimate level of segmentation leads to segments of one, customized marketing for one-to-one marketing. Combines optionally driven mass customization with customized marketing in a way that empowers consumers to design a product and service offering of their choice.
Segmenting consumer markets
Geographic segmentation -- geographical units such as nations, states, regions, counties, cities, neighborhoods
demographic segmentation -- variables such as age, family size, family lifecycle, gender, income, occupation, education, religion, race, generation, nationality, and social class
psychographic segmentation -- the science of using psychology and demographics to better understand consumer. Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values
behavioral segmentation -- buyers are divided in groups on the basis of their knowledge of, attitude toward, use of, or response to product
Bases for segmenting business markets
business markets can be segmented with some of the same variables used in consumer market segmentation, but business marketers also use other variables.
cont ....
Argument for massmarketing -- creates largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins
argument against massmarketing -- increasing splintering of the market. Diverse advertising and distribution channels increases difficulty and expense is to reach mass audiences.
Most companies are turning to micro marketing at one of four levels:
- segments
- niches
- local areas
- individuals
Marketers do not create the segments -- the marketers task is to identify the segments and decide which ones to target.
Flexible market offering -- consists of two parts: a naked solution containing the product and service elements at all segment members value, and discretionary options that some segment members value
Market segments can be defined in many different ways.
Identify preference segments.
Homogeneous preferences -- market where all the consumers have roughly the same preferences
diffused preferences -- consumers vary greatly in their preferences
clustered preferences -- market reveals distinct preference clusters, called natural market segments
Niche marketing -- narrowly define customer group seeking a distinctive mix of benefits. Globalization has facilitated niche marketing.
Marketers usually identify niches by dividing a segment into sub segments. As marketing efficiency increases, niches that were seemingly too small may become more profitable.
Local marketing -- marketing programs tailored to the needs and wants of local customer groups such as trading areas, neighborhoods, and individual stores.
Local marketing reflects a growing trend called grassroots marketing. Marketing activities concentrate on getting as close and personally relevant to individual customers as possible. A large part of local, grassroots marketing is experimental marketing, which promotes a product or service not just by communicating its features and benefits, but also connecting it with unique and interesting experiences.
Customerization -- ultimate level of segmentation leads to segments of one, customized marketing for one-to-one marketing. Combines optionally driven mass customization with customized marketing in a way that empowers consumers to design a product and service offering of their choice.
Segmenting consumer markets
Geographic segmentation -- geographical units such as nations, states, regions, counties, cities, neighborhoods
demographic segmentation -- variables such as age, family size, family lifecycle, gender, income, occupation, education, religion, race, generation, nationality, and social class
psychographic segmentation -- the science of using psychology and demographics to better understand consumer. Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values
behavioral segmentation -- buyers are divided in groups on the basis of their knowledge of, attitude toward, use of, or response to product
Bases for segmenting business markets
business markets can be segmented with some of the same variables used in consumer market segmentation, but business marketers also use other variables.
cont ....
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