Chapter 7 Flashcards
(26 cards)
marketing 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.
generational marketing
Marketing to a particular generation, who typically share the same outlooks, preferences, etc.
buying power
A concept in segmentation that can help marketers to determine how to better match different products and versions of products to different consumer groups based on an understanding of what discretionary and nondiscretionary allocations of funds they are able to make.
content marketing
The strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics.
geographic segmentation
An approach in which marketers tailor their offerings to specific geographic areas because people’s preferences often vary depending on where they live.
micromarketing
The ability to identify and target very small geographic segments that sometimes amount to individuals.
geodemography
A segmentation technique that combines geography with demographics.
psychographics
The use of psychological, sociological, and anthropological factors to construct market segments.
VALS™
A psychographic segmentation system that divides U.S. adults into eight groups according to what drives them psychologically as well as by their economic resources.
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 percent of purchasers account for 80 percent of a product’s sales.
usage rate
A measure of how much a good or service is bought or used by consumers.
usage occasions
An indicator used in behavioral market segmentation based on when consumers use a product most.
organizational demographics
Organization-specific dimensions that can be used to describe, classify, and organize different organizations for the purpose of segmenting business-to-business markets.
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.
concentrated targeting strategy
Focusing a firm’s efforts on offering one or more products to a single segment.
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.
mass customization
An approach that modifies a basic good or service to meet the needs of an individual.
competitive advantage
A firm’s edge over its competitors that allows it to have higher sales, higher profits, more customers and enjoy greater success year after year.
positioning
Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.
