Chapter 5: identifying and targeting attractive market segments Flashcards
(16 cards)
Market segments
groups of customers in a market with similar characteristics such as needs and buying behaviour
Market segmentation
the process of dividing a market up into market segments, groups of customers with similar needs, and buying criteria
Market targeting
the process of deciding what segments the organisation will focus on and how.
Segment positioning
refers to the position that an organisation would like to occupy in a segment.
Positioning concept
the position that an organisations management would like a product or brand to occupy in the hearts and minds of customers and potential customers
Positioning effectiveness
the extent to which positioning objectives are attained.
Positioning strategy
co-ordinating elements
of the marketing mix to implement the positioning concept.
Unique selling proposition (USP)
the key benefit to customers that distinguishes a product or brand from competitors and provides a basis for competitive advantage.
Value proposition
a message that conveys the key benefit(s) offered by a product or brand
Needs based segmentation
Uses buyers needs and preferences as the basis for segmentation
Demographic segmentation
Uses demographic variables to segment the potential customers
Geographical segmentation
uses Geographical elements
Segmentation by product service and channel
Grouped according to the products and services the organisation has
Psychographic segmentation
Personality attributes, motives and lifestyles which can be too vague
Behaviouristic segmentation
the process of sorting and grouping customers based on the behaviours they exhibit and how they respond to products and services
Predictive analytics
- predict future customers behaviour
= predictive modelling
= big data analytics
= customer profiling
