Chapter 8 - Market Segmentation

1. Target marketing includes three activities: market segmentation, market targeting, and market positioning. Market segments are large, identifiable groups within a market. 

2. Two bases for segmenting consumer markets are consumer characteristics and consumer responses. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. Marketers use them singly or in combination. 

3. Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors.

4. To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable. 

5.  We can target markets at four main levels: mass, multiple segments, single (or niche) segments, and individuals. 

6. A mass-market targeting approach is adopted only by the biggest companies. Many companies target multiple segments defined in various ways such as various demographic groups who seek the same product benefit. 

7. A niche is a more narrowly defined group. Globalization and the Internet have made niche marketing more feasible to many. 

8. More companies now practice individual and mass customization. The future is likely to see more individual consumers take the initiative in designing products and brands. Marketers must choose target markets in a socially responsible manner at all times.