Page 128 - DMGT408DMGT203_Marketing Management

Unit 5: Designing a Customer-driven Strategy .......

Self Assessment Notes

Fill in the Blanks:
19. …………………… mix strategies deal with design and quality.
20. Sponsorship and advertising are a part of …………………… mix.

5.7 Summary

Market segmentation seeks to carve out a homogenous market out of a large, heterogeneous
market. There are a few common bases, which are used in segmentation e.g. demographic,
economic, psychographics etc.
Segmentation is advantageous to marketers in many ways. Instead of spending all
marketing resources on a heterogeneous market where customers have varied
characteristics and response patterns, segmentation guides marketing managers to identify
who are the likely buyers and to spend the resources on these buyers to achieve a time
based result.

Marketers use three strategic options in target marketing. They are undifferentiated
marketing, differentiated marketing and concentrated marketing. In undifferentiated
marketing strategy, the same marketing program is offered to everyone regardless of
their differences.
Positioning is a very important concept in modern marketing. It is the decision by a
marketer to try to achieve a well-defined and differentiated brand image relative to
competition in a targeted market segment.

Marketing mix is a tool that assists in defining a marketing strategy for the product or
service. Marketing Strategy and Marketing Mix are closely related to each other. Proper
marketing mix analysis is very important for implementation of your marketing plan to
achieve the business goals.

5.8 Keywords

Behavioral Segmentation: Market segmentation based on consumer’s product related behavior;
typically the benefits desired from a product.
Demography: The statistical study of human population and its distribution.
Market Targeting: The Process of segmenting, targeting and positioning an offer in the market.

Positioning: Process by which marketers try to create an image or identity in the minds of their
target market for its company, product & services and brands.
Psychographics: It is the science of using psychology and demographics to study the lifestyle
patterns of consumers.
Segmentation: The process of segregating a heterogeneous market into a set of homogeneous
groups of customers.
Target market: It is a group of customers that the business has decided to aim its marketing
efforts and ultimately its merchandise.

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