What's it: Demographic segmentation divides the population in a market into segments based on variables such as age, education, income, and occupation. Then, the company associates these variables with consumer tastes and purchasing
Marketing
Geographic Segmentation: Meaning, How it Works, Pros, Cons
What's it: Geographic segmentation divides consumers into segments based on where they live. It is a market segmentation alternative to demographic segmentation and psychographic segmentation. Some items may only be suitable in tropical
Social Marketing: Meaning, Importance, Examples, Advantages
What's it: Social marketing has a social purpose rather than a profit like commercial marketing. It integrates marketing concepts to drive behavior change for the long-term benefit and well-being of society. Such an objective differs from
Market Location: Meaning, Types, Factors to Consider
What's it: A market location is where the company sells its products. Choosing the right one is important as it affects sales and profits, and the resources consumed. Also, each location has inherent advantages and risks. Types of market
Market Segment: Meaning, Why It Matters, Criterias, Types
What's it: A market segment is parts of a market where consumers share a similar need or want. Individuals in one segment have similar characteristics, including in responding to the marketing mix. However, they are quite heterogeneous with
Psychographic Segmentation: Meaning, Why it Matters, Variables
What's it: Psychographic segmentation divides the population in a market into segments based on psychographic variables such as values, personality, goals, interests, and lifestyle. Compared with the other two market segmentation, demographic
Asset-led Marketing: Definition and How It Works
What's it: Asset-led marketing is a marketing philosophy in which a company should base its marketing strategy on its core competencies, not purely on what customers want. The company leverages its core competencies to innovate, drive
Marketing Research: Objectives, Types, Steps, Methods
What's it: Marketing research is the efforts of systematically collecting and analyzing markets to support more effective marketing decision making. The stages usually include setting objectives, designing research and methods, collecting data,
Market Orientation: Meaning, How It Works, Pros and Cons
What's it: Market orientation is a business philosophy in which a company focuses on meeting customer needs and wants through its products. In this case, the company assumes its success depends on customer satisfaction. Satisfying customers
Commercial Marketing: How It Works, Different With Social Marketing
What's it: Commercial marketing is efforts to promote and sell products profitably. The keyword here is profit. That is the antithesis of social marketing, which has a non-profit motive and seeks to educate consumers about collective social
Advertising: Characteristics, Types, Objectives, Development Stages
What's it: Advertising is a form of paid non-personal communication transmitted through various media. Its purpose is to inform, educate, or persuade the audience to take any action in relation to the product, idea, or service being
Private Label: Meaning, How It Works, Advantages and Disadvantages
What's it: Private label products refer to products owned by a company but are not made in-house. Companies procure their products from other manufacturers or manufacturers with contracts under their labels. You can find them in a wide variety of
Mass Marketing: Meaning, How It Works, Advantages and Disadvantages
What's it: Mass marketing is efforts to promote and sell products by targeting the mass market. The mass market is a market where many customers exist in a market with common needs. Companies view consumers in the market as having homogeneous
Market Share: Meaning, Why It Matters, How To Calculate and Increase It
What's it: Market share shows you how much a company dominates the market. You calculate it by comparing company size to market size, expressed as a percent. You can calculate it using several measures such as sales value, sales volume, number
Market Growth: Meaning, Importance, Influencing Factors
What's it: Market growth refers to the percentage change in market size over a given period. It is marked by the rise and fall of total sales by all companies in the market. Therefore, growth is an important factor to consider in
Market Size: How to Calculate, Types, Importance
What’s it: Market size is how big is total sales of all producers in the market. It is in terms of sales value, sales volume, or the number of customers. We also refer to it as market demand and can refer to current or potential
Advertising Agency: Meaning, Types, Department, Source of Income
What's it: An advertising agency is a company specializing in the planning, creation, and placement of advertisements for its clients. It may also provide other services, such as facilitating the marketing communication process and other
Glocalization: Importances, Examples, How it works, Pros, Cons
What's it: Glocalization is a strategy of an international company by adapting its methods, products, or services to suit local markets. It is a combination of the words "Globalization" and "Localization." So, in summary, it is a global strategy
Business-to-Consumer: Meaning, Types of Business Model
What's it: Business-to-consumer (B2C) refers to a business model in which a company sells directly to individual consumers. This term is usually associated with selling via online channels or eCommerce. When a buyer is a company, we refer to it
Values, Attitudes and Lifestyles (VALS): Categories and Why They Matter
What's it: VALS stands for values, attitudes, and lifestyles, a framework for psychographic segmentation. It combines psychological and demographic characteristics to explain consumer behavior. Under the VALS framework, customers in the
Behavioral Segmentation: Meaning, Types, Advantages, Disadvantages
What's it: Behavior segmentation divides the market into small, homogeneous groups based on consumers' habit patterns spending their time and money. Consumers in a segment should be similar in terms of their wants, resources, buying attitudes,