segmentation: identify customer groups of 1. similar needs for specific product benefit 2.similar purchasing behavior and response to 4Ps
a segment has to be:
1. identifiable 2.accessible 3.predictive of future profits
selective demand : when company deliver message about how their brand or product is the best match for the needs of the target market
heavy half theory: half consumers account for 80% consumption
descriptive approach: geographics, demographics, socio-enomomic characteristics....
behavioral approach: characteristics that are directly relevant to marketers
example:
1. benefits sought
2. attitudes towards products
3. likelihood of purchase
4. price sensitivity
5. purchase volume
6. loyalty--retention rate
7. customer life-time value
8. media response
9. need for service
behavioral approach profiles into descriptive approach
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