Ch. 2.2 – Define market segmentation

market segmentation
the process of classifying people who form a given market into even smaller groups.
demographics
statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, and occupation
Generation X
Followed the Baby Boom Generation. Children of dual-career households of divorced parents. Media from an early age. Savvy purchasers and skeptical consumers. To reach group: sharp images, music, a sense of humor, and meet them on their terms.
Baby Boom Gen.
76 million babies born in 1946 and 1964 are known as the baby boomers. As baby boomers get older, their income and spending price increase. prime targets for gadgets, cosmetics, and products to enhance life.
Generation Y
Sons and daughters of the baby boomers. Are reached by the internet.
Disposable income
money left after taking out taxes
discretionary income
money left after paying for basic living necessities such as food, shelter, and clothing.
geographics
segmentation of the market based on where people live.
behavrioral
statementing the market based on product-based on product-related behavior involves looking at the benefits desired by consumers, shopping patterns, and usage rate.
psychographics
grouping people with similar lifestyles, as well as shared attitudes, values, and opinions
mass marketing
single marketing strategy to reach all customers
niche marketing
markets are narrowed down and defined with extreme percision