Market segmentation Markets generally fall into two broad types, namely consumer markets and business markets. A consumer market consists of individuals or households who purchase goods for private consumption and do not intend to resell those goods for a profit. A business market consists of individuals or organisations who purchase goods for one of three main purposes; a for resale; b for use in producing other goods or services and; c for general use in daily business operations.
According to the author, social class segmentation involves two basic issues. The fundamental one is which approach better explains consumer behavior by using social class and income in segmenting markets. He suggests that many lifestyle items show the significant correlations with the index of social class.
In fact, he describes that the radical differences in the spending patterns of three families belonging to different social classes with the same among earning per year. An upper middle-class family likes to buy houses in a prestige neighborhood, expensive furniture, and clothing from quality stores.
A middle-class family has a better house but not in a fancy neighborhood and buy furniture that is not done by name designers. A working class family has a small house, but has a larger newer car, more expensive kitchen appliances. This family usually spends less on clothing and furniture.
In our class, we talk about that the working class often retain their distinctive class values, lifestyles, and tastes even though they have the same buying power as the middle-class. The working-class women think their primary role as house workers, while middle-class women define themselves as wives.
In contrast, the middle-class women want the latest appliances to make their escape from the kitchen easily. They are more concern about the designs of applicances. This entry was posted in Assignment 2.Selection of a target market (or target markets) is part of the overall process known as S-T-P (Segmentation→Targeting→Positioning).Before a business can develop a positioning strategy, it must first segment the market and identify the target (or targets) for the positioning strategy.
Start studying MKGT exam 1. Learn vocabulary, terms, and more with flashcards, games, and other study tools. social class as a variable for segmenting consumer markets? Explore. Explore. In the early days of segmentation, according to Schiffman, it was not unusual to apply only one segmentation criterion, e.g.
demographic segmentation. How to Segment Industrial Markets. Benson P. Shapiro; As difficult as segmenting consumer markets is, it is much simpler and easier than segmenting industrial markets. is an important.
Discussion Questions. Chapter 1 – Marketing Planning: New Pace, New Possibilities Do you think social class is a meaningful variable for segmenting consumer markets? Why or why not?
Do you think social class is a meaningful variable for segmenting consumer markets? Why or why not? Social class is a relatively stable division into groups based on such factors as education, income, and occupation. Reference groups provide norms and values which become the perspectives that influence a consumerÕs behavior.