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Flashcards in marketing ch.9 Deck (19):
1

Market Segmentation-

involves aggregating prospective buyers into groups that
Have common needs

Will respond similarly to a marketing action

2

Market Segments

relatively homogenous groups of prospective buyers that result from the market segmentation process

3

Product Differentiation

- firm using different marketing mix activities such as product features and advertising to help consumers perceive the product as being different and better than competing products.

4

Market Product Grid

- framework to relate the market segments of potential buyers to products offered or potential marketing actions.

5

when generally do you segment

A business goes to the trouble and expense of segmenting its markets when it expects that this will increase its sales, profit, and return on investment.

6

One Product and Multiple Market Segments

When an org produces only one product and wants to sell it to two+ markets
Ex. Harry Potter, magazines

7

Multiple Products Multiple Market Segments

Different products attract different market segments
More expensive the producing one good BUT it is effective if it meets customers' needs better

8

Segments of One: Mass Customization

Each customer has unique set of needs/wants
Tailoring goods to individual customers on a high volume scale

9

Organizational synergy-

the increased customer value achieved through preforming organizational functions like marketing/manufacturing more efficiently

10

Cannibalization

new products/new chains simply stealing sales from the older ?

11

Steps in sementing/targeting markets

1-group potential buyers into segments
2-Group products to be sold into categories
3- Develop a market product grid and estimate size of markets
4-Select Target Markets
5-take marketing actions to reach target markets

12

○ Criteria to use in forming the segments

Simplicity/Cost effectiveness
Potnetial for increased profits
similarity of needs of potential buyers
difference of needs of buyers among all segments
potential of marketing action to reach a segment

13

Ways to segment consumer markets

Geographic, Demographic, psychographic, behavioral

14

Usage rate

is the quantity consumed or patronage—store visits—during a specific period.

15

80/20 rule

80% of a firms sales are obtained from 20% of its customers

16

Criteria to Use in Selecting the Target Segment

market size, expected growth, competitive position, cost of reaching segment, compatibility with the organizations objectives and resources

17

Head to head positioning

- competing directly with competitors on similar product attributes in the same target market

18

Differentiation position

seeking less competitive, smaller market niche

19

Perceptual map

- means of displaying/graphing in 2D the location of products or brands in the minds of consumers.