Segmenting and Targeting Markets Flashcards Preview

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Flashcards in Segmenting and Targeting Markets Deck (24):
1

Market

People or organizations with needs or wants and the ability and willingness to buy

2

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

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Market Segmentation

The process of dividing a market into meaningful, relatively similar product needs

4

Segmentation Bases

Characteristics of individuals, groups, or organizations

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Geographic Segmentation

Segmenting markets by region of a country or the world, market size market density, or climate

6

Demographic Segmentation

Segmenting markets by age, gender, income, ethnic background, and family

7

Family Life Cycle (FLC)

A series of stages determined by a combination of age, marital status, and the presence or absence of children

8

Psychographic Segmentation

Segmenting markets on the basis of personality, motives, lifestyles, and geo-demographics

9

Benefit Segmentation

The process of grouping customers into market segments according to the benefits they seek from the product

10

Usage-Rate Segmentation

Dividing a market by the amount of product bought or consumed

11

80/20 Principle

A principle holding that 20 percent of all customers generate 80 percent of the demand

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Satisficers

Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

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Optimizers

Business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one

14

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

15

Undifferentiated Targeting Strategy

A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

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Concentrated Targeting Strategy

A strategy used to select one segment of a market for targeting marketing efforts

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Niche

One segment of a market

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Multisegment Targeting Strategy

Strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

19

Cannibalization

A situation that occurs when sales of a new product cut into sales of a firm's existing products

20

Positioning

Developing a specific marketing mix to influence potential customers' overall perception of a brand, product-line, or organization in general

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Position

The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

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Product Differentiation

A positioning strategy that some firms use to distinguish their products from those of competitors

23

Perceptual Mapping

A means of displaying or graphing, in two or more dimensions, the location of products, brands, of groups of products in customers' minds

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Repositioning

Changing consumers' perceptions of a brand in relation to competing brands