Ch 9 Flashcards
(20 cards)
What is market segmentation?
Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
What are the bases for segmentation?
Geographic, demographic, psychographic, and behavioral.
What does geographic segmentation consider?
Location (e.g., urban vs. rural).
What factors are included in demographic segmentation?
Age, gender, income, education.
What does psychographic segmentation focus on?
Lifestyle and personality.
What does behavioral segmentation analyze?
Usage rate and benefits sought.
What criteria are used for selecting target markets?
Market size, expected growth, competitive position, cost of reaching the segment, and compatibility with organizational goals.
What is the Tiffany/Walmart Strategy?
Offering high-end and low-end products to different segments.
What are perceptual maps?
Visual representation of how consumers perceive competing products/brands on key attributes.
What is product positioning?
Creating a unique image for a product in the minds of consumers.
What is an example of repositioning?
Repositioning chocolate milk as an adult drink.
What is a market-product grid?
A framework to relate market segments to products offered.
What is an example of targeting in a market-product grid?
Wendy’s targeting students with specific meal options.
What is Product Differentiation?
Using different marketing mix actions to make a product appear unique and better than competitors.
What is Usage Rate?
The quantity consumed or frequency of store visits during a specific period.
Example: heavy users vs. light users.
What is the 80/20 Rule?
The idea that 80% of a firm’s sales come from 20% of its customers.
What is Customer Lifetime Value (CLV)?
The financial worth of a customer over the course of their relationship with a company.
What are Personas?
Fictional character descriptions of a brand’s typical customers.
Example: ‘Day in the life’ of a Wendy’s customer.
What is Repositioning?
Changing the place a product occupies in consumers’ minds relative to competitors.
Example: repositioning chocolate milk for adults.
What is Product Differentiation?
Using different marketing mix actions to make a product appear unique and better than competitors.
