Marketing 3rd Quarter for UT

• Is a sub-group of a particular market which is composed of units with more or less similar characteristics

  Market Segmentation
• Segmentation Strategies

  1. Concentration or Single-segment Strategy
  2. Multi-segment Strategy
• Nations, regions, province, cities, towns, and barangay

  Geographic Segmentation
• Age, sex, family size, family life cycle, income, occupation, education, religion, race, and nationality

  Demographic Segmentation
• Social Class and Life Cycle

  Psychographic Segmentation
• Purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, and attitude toward product

  Behavioral Segmentation
• Requirements for effective Segmentation

  1. It must be measurable
  2. It must be accessible
  3. It must be substantial
  4. It must be actionable
• The variables of a particular segment must be measurable

  Measurable
• The segment must be large or wide enough to be economically feasible

  Substantial
• Segmentation will be useful only if the segment members can be reach economically by pre-designed marketing effort

  Accessible
• For segmentation to be useful, the firm must have the ability to some various segments

  Actionable
• In choosing a market segment, it must be large enough to be worth serving.

  Size
• There are markets that are not currently attractive but some of these may be expected to grow in the future.

  Expected Growth
• The presence of competition in the segment considered lowers the firm's chance of successfully making profits.

  Competitive Position
• A market segment that is chosen must be easily reached by the firm

  Cost of Reaching the Segment
• If the firms does not have enough resources to serve a prospective segment, the segment must not be selected

  Compatibility with the firm's objectives and resources
• Classification of Product

  1. Consumer Goods
  2. Industrial Goods
• a ___ is anything offered for sale by a firm to buyers to satisfy their wants and needs

  Product
• Are those intended for final consumption by consumers.

  Consumer Goods
• Consumer Goods may be classified to:

  1. Rate of Consumptions and Tangibility
  2. Consumer Shopping Habits
• Tangible goods which normally survive many uses

  Durable Goods
• Tangible Goods which are consumed in one or a few use

  Nondurable Goods
• Intangible goods like activities, benefits for satisfaction which are offered for sale

  Services
• Those which are purchased with a minimum effort

  Convenience Goods
• Those that are bought only after an effort to compare with other good is made

  Shopping Goods
• Those that are consumer seek to buy and they are not willing or they are not able to accept substitute

  Specialty Goods
• Those that are not yet wanted by or are still unknown to the consumer

  Unsought Goods
• Are those used in the production of other goods

  Industrial Goods
• Refers to industrial products with long life, are generally expensive

  Installation
• These are industrial goods that are used as aids in the production process. They have shorter usable life than Installation

  Accessory Equipment
• Are unprocessed goods that will become part of another product

  Raw Materials
• Raw Materials are of two types

  1. Farm Products
  2. Natural Products
• These are processed industrial goods tat will still be used and become an actual part of the finish product

  Component Parts and Materials
• These are items that are used as aids in the operating process but do not become part of the finished product

  Supplies
• These are expensive items that assist in the operation (Industrial Goods)

  Services