Exam 3: Segmentation

The least common marketing research technique used to segment customer data is cluster analysis.

Sometimes segments can be highly profitable if the marketer pays attention and satisfies those customers' needs.

How do marketers segment a market?

The ideal goal for the marketer is to find an untapped (or at least relatively underserved) group of customers whose needs can easily and profitably be met.

means that all customers are treated the same. This approach might sound attractive because it simplifies the marketing task, but it is usually unrealistic because customers differ.

It is easier to identify, obtain information on, and woo customers who are currently using a competitor's brand, or who aren't even purchasers in the category.

Collectively, a marketplace of consumers is homogeneous.

Why is it not advisable to target an entire market with a new product offering?

Income is a psychological variable.

is a type of segmentation in which the company strategically focuses on targeting a smaller market with particular needs that the company can serve well.

The managerial perspective is important with respect to assessing whether serving a specific is consistent with overall corporate goals.

Outline some differences between segmenting businesses versus segmenting consumers.

Families with higher household incomes hire more service workers.

Companies that have experimented with the one-to-one marketing approach have scaled back their attempts to achieve mass customization because it is not cost effective.

An increasingly popular means of using co-purchasing patterns to generate cross-selling suggestions are Internet recommendation agents.

Differences in and preferences require that different products be provided to satisfy the different segments' needs.

Segments become more homogeneous as they increase in size.

Define "current users" versus others. How does this apply to marketers?

What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?

As segments increase in size, it becomes to satisfy them with the same product.