Flashcards in Exam 2 (ch. 8,9,10,11,12,14) Deck (200)
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people or organizations with needs or wants and the ability and willingness to buy
market
2
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
market segment
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the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
market segmentation
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characteristics of individuals, groups, or organizations
segmentation bases (variables)
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segmenting markets by region of a country or the world, market size, market density, or climate
geographic segmentation
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segmenting markets by age, gender, income, ethnic background, and family life cycle
demographic segmentation
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series of stages determined by a combination of age, marital status, and he presence or absence of children
family life cycle (FLC)
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segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
psychographic segmentation
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segmenting potential customers into neighborhood lifestyle categories
geodemographic segmentation
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the process of grouping customers into market segments according to the benefits they seek from the product
benefit segmentation
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dividing a market by the amount of product bought or consumed
usage-rate segmentation
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principle holding that 20 percent of all customers generate 80 percent of the demand
80/20 principle
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4 basic criteria of a market segment
1. be substantial and have enough potential customers
2. be identifiable and measurable
3. be accessible to marketing efforts
4. respond to particular marketing efforts in a way that distinguished it from other segments
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5 bases commonly used for segmenting consumer markets
1. geographic segmentation
2. demographic segmentation
3. psychographic segmentation
4. benefit segmentation
5. usage-rate segmentation
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bases for segmenting business markets
1. company characteristics
2. customer buying processes
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business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
satisficer
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business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
optimizers
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6 steps involved in segmenting markets
1. select market/product category for study
2. choose basis/bases for segmenting market
3. selecting segmentation descriptors
4. profile and evaluate segments
5. select target markets
6. design, implement, and maintain appropriate marketing mixes
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strategies for selecting target markets
undifferentiated targeting strategy, concentrated targeting strategy, and multisegment targeting strategy
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why would companies reposition?
to sustain growth in a slow market or correct positioning mistakes
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a group of people or organizations for which an organization design, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
target market
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a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
undifferentiated targeting strategy
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a strategy used to select one segment of a market for targeting marketing efforts
concentrated targeting strategy
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one segment of a market
niche
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strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
multisegment targeting strategy
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a situation that occurs when sales of a new product cut into sales of a firm's existing products
cannibalization
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developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
positioning
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the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
position
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a positioning strategy that some firms use to distinguish their products from those of competitors
product differentiation
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