7. Segmentation Flashcards
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate marketing startegies or mixes.
Market targeting
Evaluating each market segment’s attractiveness and selecting one or more segments to serve.
Differentiation
Actually differentiating the market offering to create superior customer value.
Positioning
Arranging for a market offering to occupy a clear, distinctive, and a desiravle place relative to competing products in the !minds! of target consumers.
Geographic segmentation
Deviding a market into different geographical units, such as nations, states, regions, countries, cities or even neighborhoods.
Demographic segmentation
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Psychographic segmentation
Dividing a market into differents segments based on lifestyle or personality characteristics.
Behavioral segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product - usage rate, or responses to a product.
Occasion segmentation
Dividing the market into segments
according to occasions when buyers
get the idea to buy, actually make their
purchase, or use the purchased item.
Benefit segmentation
Dividing the market into segments
according to the different benefits that
consumers seek from the product.
Intermarket (cross-market, multiple market) segmentation
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
The requirements for effective segmentation
Has to be measurable, accessible, substantial, differentiable and actionable.
Evaluating the segment
Size and growth, structural atractiveness and the company’s objectives and resources.
Target market
A set of buyers who share common needs or characteristics that a company decides to serve.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Differentiated (segmented) marketing
A marketing-coverage startegy in which a firm targets several market segments and designs separate offers for each.
Concentrated (niche) marketing
A market-coverage startegy in which a firm goes after a large share of one or a few segments or niches.
Micromarketing (local or individual)
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local and individual marketing.
Product positioning
The way a product is defined by consumers on important attributes - the place it occupies in consumers’ minds relative to competing products.
Competitive advantage
An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices.
Criteria for difference
The difference must be important, distinctive, superior, communicable, preemptive, affordable, profitable.
Value proposition
The full positioning of a brand - the full mix of benefits on which it is positioned.
