Marketing 210 Exam 1 Chapter 8 Flashcards
(25 cards)
Market
(1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy. A group of people or an organization that lacks any one of these characteristics is not a market.
Market Segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Market Segmentation
The process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups.
Segmentation Bases, Variables
Marketers use these characteristics of individuals, groups, or organizations, to divide a total market into segments.
Geographic Segmentation
Segmenting markets by region of a country or the world, market size, market density, or climate.
Demographic Segmentation
Age, gender, income, ethnic background, and family life cycle.
(FLC)
Family Life Cycle
Series of stages determined by a combination of age, marital status, and the presence or absence of children.
Psychographic Segmentation
Market segmentation on the basis of the following psychographic segmentation variables:
Personality
Motives
Lifestyles
Geodemographics
Geodemographic Segmentation
Clusters potential customers into neighborhood lifestyle categories.
Benefit Segmentation
The process of grouping customers into market segments according to the benefits they seek from the product.
Usage-Rate Segmentation
Divides a market by the amount of product bought or consumed.
80/20 Principle
20 percent of all customers generate 80 percent of the demand.
Satificers
Contact familiar suppliers and place the order with the first one to satisfy product and delivery requirements.
Optimizers
Consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one.
Target Market
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
Undifferentiated Targeting Strategy
Adopts a mass-market philosophy, viewing the market as one big market with no individual segments.
Concentrated Targeting Strategy
When a firm selects a market niche (one segment of a market) for targeting its marketing efforts.
Niche
One segment of a market
Multisegment Targeting Strategy
A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each.
Cannibilazation
When sales of a new product cut into sales of a firm’s existing products.
Positioning
A process that influences potential customers’ overall perception of a brand, product line, or organization in general.
Position
The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.
Product Differentation
Positioning strategy that many firms use to distinguish their products from competitors.
Perceptual Mapping
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.
