Chapter 7 Flashcards
(26 cards)
Market segmentation
requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Market targetting (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 desirable place relative to competing products in the minds of target consumers.
Geographic segmentation
Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighbourhoods.
Demographic segmentation
Divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Age and life-cycle stage segmentation
Divides a market into different age and life-cycle groups.
Gender segmentation
Divides a market into different segments based on gender.
Income segmentation
Divides a market into different income segments.
Psychographic segmentation
Divides a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioral segmentation
Divides a market into segments based on consumer knowledge, attitudes, uses of a product, 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) segmentation
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
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 market-coverage strategy in which a firm targets several market segments and designs separate offers for each.
Concentrated (Niche) marketing
Amarket0coveragde strategy in which a firm goes after a large share of one or a few segments or niches.
Micromarketing
This is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
Local marketing
This involves tailoring brands and promotion to the needs and wants of local customer segments. (Cities, Neighborhoods, Stores)
Individual marketing
This involves tailoring products and marketing programs to the needs and preferences of individual customers. (One-to-one marketing, Mass customization)
Product position
This is the way the product is defined by consumers on important attributes.
Positioning maps
This show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.
Competitive advantage
This is the advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
