Ch 1 H.W Consumer Behavior

Different ways to segment a market would be demographics, geographics, psychographics, and behavioral. I think that it makes more sense to focus on just one segment rather than use more than one it would be more successful for the company.

3. Generate at least three ideas for how the marketing mix strategy of an auto manufacturer might be different for each of these three segments based on your profiles. Provide three

segmenting customer groups. The psychographic segment variables include people with similar personalities, values, and lifestyles. The last of the segmentation bases of the U.S. consumer markets would be behavioral segments. These are actions a person takes in purchasing and using products and services. Some of these segment variables include outlet type, direct, product features, usage rate, user status and awareness/intentions. Once the segmentation of the market is developed, the second step is to group products to be sold into categories. One can then develop a market-product grid and estimate the size of the markets. A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 3 Steps four and five consist of using the segmentation will help to develop the target markets, which in turn will then lead to successful marketing actions. Successful segmentation depends on

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

| The marketing concept stresses the commitment to satisfying customer needs and wants with an entire range of marketing tools, not just selling or advertising.

Market segmentation allows marketers to understand customers’ needs and identify target markets (Peter & Donnelly, 2011). Bright Light Innovations will be able to evaluate different segments to determine differential advantages in each of those segments. Furthermore, management will be able to determine any of the particular marketing mix for a more successful strategic plan. Market segmentation can be obtained by researching geographic data (zip code, region, etc), demographic data (age, occupation, nationality, etc), psychographic data (social status, personal type, etc), behavioral data (customer behavior), or any other data that can be beneficial to the research (Kawasaki, 2004).

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).

Consumption can be illustrated in different ways, but is usually best defined as the final purchase of goods and services by individuals. Consumer behavior is the study of how people make decisions which they

The segmentation has been done on the basis of buying behavior of the customers. Knowledge of segment buying behavior can help redirect marketing resources for profit gain.

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

Chapter 14 Communicating Customer Value: Integrated Marketing Communication Strategy 1) A company 's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________. A) direct marketing B) integrated marketing C) the promotion mix D) competitive marketing E) target marketing Answer: C Diff: 1 Page Ref: 402 AACSB: Communication Skill: Concept Objective: 14-1 2) The use of short-term incentives to encourage the purchase or sale of a

Over the last several years the process of reaching out to customers has been continually changing. Part of reason for this is because more people are turning to the Internet as a way to be able to promote their products and communicate to a larger audience. A good example of this can be seen with the election of Barack Obama in 2008, with him using this medium as a way to gain support and funding for his campaign. This allowed him to utilize this new technology to effectively connect with and inform voters about key issues. Over the course of time this helped his campaign to gain momentum. Once this occurred is when he was able to stand out against his rivals through effectively utilizing these tools. (Miller, 2008)

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

To understand the consumers in the target market, marketing managers rely on the 7 O’s framework of consumer research.

There are five major segmentation strategies that group various customers into segments. Fill (2009) explains that demographic segmentation consists of factors such as age, nationality or level of education. Geographic segmentation is based on the assumption that