chapter 3

• Market Segmentation - the process of dividing the people and organizations into different groups of potential buyers with similar characteristics.
• Target Market - the segments or groups of people and organizations you decide to sell.
• Targeted Marketing/Differentiated marketing - you may differentiate some aspect of marketing (offering, promotion, price) for different groups of customers selected.
• Mass Marketing/Undifferentiated Marketing - evolved along mass production and involves selling the same product to everybody.
• Technology - making it easier for even small companies and entrepreneurs to gather information about potential customers.
• One-to-one marketing - an idea proposed by Don Peppers and Martha Rogers in their 1994 book "the One to One Future"
• STEPS IN ONE-TO-ONE MARKETING

  1. Establish short-term measures to evaluate your efforts - determine how you will measure your effort.
• STEPS IN ONE-TO-ONE MARKETING

  2. Identify your customers - gather all the information you can about your current customers, including their buying patters, likes, and dislikes.
• STEPS IN ONE-TO-ONE MARKETING

  3. Differentiate among your customers - determine who you best customer are in terms of what they spend and will spend in the future.
• STEPS IN ONE-TO-ONE MARKETING

  4. Interact with your customers, targeting your best ones - fin ways and media in which to talk to customers about topics they're interested in and enjoy.
• STEPS IN ONE-TO-ONE MARKETING

  5. Customize your products and marketing messages to meet their needs - try to customize your marketing messages and products in order to give you customers exactly what they want.
• One-to-one marketing - the process of forming close, personal relationships with customers and giving them exactly what they want.
• Behavioral segmentation - what benefits do customers want, and how do they use our products?
• Demographic segmentation - how do the ages, races, and ethnic backgrounds of our customers affect what they buy?
• Geographic segmentation - where are our customers located, and how can we reach them? What products do they buy based on their locations?
• Psychographic segmentation - what do our customers think about and value? how do they live their lives?
• benefits segmentation - segmenting buyers by benefits they want from products
• Behavioral segmentation - divides people and organization into groups according to how they behave with or act toward products
• Usage rates - how often do customers use certain products.
• Demographic Segmentation - segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size.
• Seniors

  • the silent generation, matures, veterans, traditionalists
  • 1945 and prior
  • experienced very limited credit growing up
  • tend to live within their means
  • spend more on healthcare than other age group
• Baby Boomers

  • 1946-1964
  • second largest generation in the U.S
  • willing to use new technologies as they see fit
• Generation X

  • 1965-1979
  • comfortable but cautious about borrowing
  • embrace technology and multitasking
• Generation Y

  • Millennials, Echo Boomers, Tweens
  • 1980-2000
  • Largest U.S generation
  • grew up with credit cards
  • technology use is innate
• Income - used as a segmentation variable because it indicates a group's buying power and may partially reflect their education levels, occupation, and social classes.
• Gender - another way to segment consumers; men and women have different needs and also shop differently.
• Family Life Cycle - refers to the stages families go through over time and how it affects people's buying behavior.
• Ethnicity - people's ethnic backgrounds have a big impact on what they buy.
• Hispanic Americans - largest and fastest-growing minority in US.
• African Americans - second-largest ethnic group in America
• HISPANIC MARKET SUBSEGMENTS:

  • Just moved in'rs - recent arrivals, spanish dependent, struggling but optimistic.
• HISPANIC MARKET SUBSEGMENTS:

  • FOBrs - Fashionistas on a budget - spanish dominant, traditional, but striving for trendy
• HISPANIC MARKET SUBSEGMENTS:

  • Accidental Explorers - spanish preferred, not in a rush to embrace U.S. culture
• HISPANIC MARKET SUBSEGMENTS:

  • The enlightened - bilingual, technology savvy, driven, educated, modern
• HISPANIC MARKET SUBSEGMENTS:

  • doubting Tomáses - bilingual, independent, skeptical, inactive, shopping uninvolved
• HISPANIC MARKET SUBSEGMENTS:

  • latin flavored - english preferred, reconnecting with hispanic traditions
• HISPANIC MARKET SUBSEGMENTS:

  • SYLrs - Single, young Latinos; english dominant, free thinkers, multicultural
• Geographic Segmentation - divides the market into areas based on location and explain why the checkout clerks at stores sometimes ask for zip codes.
• Geocoding - the process that takes data and plots it on a map. It can help businesses see where prospective customers might be clustered and target them with various ad campaigns.
• Proximity Marketing - an interesting new technology firms are using to segment and target buyers geographically within a few hundred feet of their businesses using wireless technology.