MARKETING, RECESSION, FINANCIAL CRISIS

Topic

According to investopedia.com, market segmentation means grouping prospective buyers into segments based on the buyers needs and their responses to the market. "Market segmentation attempts to isolate the traits that distinguish a certain group of customers from the overall market" (Kurtz, Principles…277). Effective market segments meet four criteria. The segment has to have adequate size and purchase power. Marketers stimulate the segment through promotions and advertisements, as well as spot segments that are substantial and sufficient. These segments are potentially profitable. The company must then search for segments with coinciding marketing capabilities. (Kurtz, Principles…276). Segmentation can be demographic, as in gender, age, generation, ethnic group, family lifestyle stage, household type, or expenditure patterns. Geographic segmentation is primarily based on location, where as psychographic segmentation uses consumers' values and

Consumer behaviour is the study of the behavioural characteristics of a person as a consumer. It includes psychological, economic and social factors. “Consumer behaviour is the study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. The needs and wants of consumers often vary across different cultures, situations and individual characteristics.”(Marketing Management, Kotler and Keller). Proper study of consumer behaviour is necessary for the improvement of marketing strategies. Economic recession