Chapter 7 Flashcards
(33 cards)
market fragmentation
the creation of many consumer groups due to a diversity of distinct needs and wants in modern society
target marketing strategy
dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments
segmentation
the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
segmentation variables
dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences
demographics
statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure
generational marketing
marketing to members of a generation, who tend to share the same outlook and priorities
cultural diversity
a management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization’s employees, customers, suppliers, and distribution channel partners
geodemography
a segmentation technique that combines geography with demographics
geocoding
customizing web advertising so that people who log on in different places will see ad banners for local businesses
psychographics
the use of psychological, sociological, and anthropological factors to construct market segments
VALS (Values and Lifestyles)
a psychographic system that divides the entire US population into eight segments
behavioral segmentation
a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service
80/20 rule
a marketing rule of thumb that 20% of purchases account for 80% of a product’s sales
long tail
a new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items
usage occasions
an indicator used in behavioral market segmentation based on what consumers use a product most
targeting
a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers
target market
the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
segment profile
a description of the typical customer in a segment
undifferentiated targeting strategy
appealing to a broad spectrum of people
differentiated targeting strategy
developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace
concentrated targeting strategy
focusing a firm’s efforts on offering one or more products to a single segment
custom marketing strategy
an approach that tailors specific products and the messages about them to individual customers
mass customization
an approach that modifies a basic good or service to meet the needs of an individual
positioning
develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition
