Marketing Mix & Segmentation

—Many businesses utilize multiple channels of distribution.

Decisions include where the customer can obtain the products.

Segmentation based on Interests, Habits, Activities, Lifestyles, Opinions, & Hobbies

—Characteristics are nations, states, regions, counties, cities, or neighborhoods.

—Decisions include what 2 make or obtain as the business’s product mix.—Both a Good and Service

Not of the Marketing Mix

Disadvantage of Market Segmentation

—Segmenting a market base on the way customers use a product or behave toward a product.

—Decisions include the promotional mix (advertising, sales promotion, selling, and publicity)

—These decisions are based on the budget a business sets for the promotional mix.

Advantage of Market Segmentation

—Demographic, —Psychographic, —Geographic & —Behavioral

—Markets divided by where the customer lives.

For example, store locations, website, and catalogs are the standard for most retailers today.

A target market represents the people most likely

—Providing the products customers want

Segmentation based on social and psychological characteristics

—Types of behavioral segmentation:— Product, Benefits, — Usage, —Loyalty, —Occasions

—Decisions include determining what a customer is willing to pay

What competition is charging, determining seasonal discounts and allowances, and credit terms

Age, gender, income, marital status, ethnicity, education, & occupation.

Level of quality, features, branding, packaging, service, and warranty

Includes four basic strategies called the 4 P’s or elements of marketing.

Identified segments of the market that a business wants to have as their customers.

Effective Communication