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Answering 8 questions on Marketing 301. - Essay Example
Q1/Ans. Market segmentation is the division of market into a number of small homogenous groups in order to enable firms to better identify and satisfying customer needs. Market segmentation is counter to mass marketing in which same offering is made to every customer…
The basis for market segmentation is a factor that is consistent to a particular market segment. Consumer market segmentation is done on Geographic, Demographic, Psychographic, and Behavioural basis. On the other hand, Business market segmentation is done on Location, customer type and Buyer Behaviour.
Q2/Ans. Production differentiation is simply an effort by firms to differentiate their products from competitors' products or their own product line. It is done to attract particular segment of market. It is a mean to highlight the differentiated aspect of your product to create its value in the eyes of customers. It is a source of competitive advantage to firms and thus helps them generate higher revenues. It works in close connection to market segmentation since with segmentation, firms identify the market segment, which they want to cater with their products, and then with product differentiation, they attract that particular market segment to the offer they have developed for them.
Q3/Ans. Consumer goods are goods that are utilized directly by consumers to satisfy their needs while business goods are those goods, which are used by manufacturing, or service-providing firms to use in their value chain to produce final goods or services to the consumers. One of the many examples of consumer goods can be potato chips that are consumed directly by consumers. ...