ch 6 Flashcards
market segmentation
process of categorizing groups of customers to divide a market into manageable pieces based on similar wants and needs
segmentation categories
1.geographic - where they live
2. demographic - who they are
3. psychographic - how they think
4. behavioural - what they do
geographic segmentation
location/region
size
environment.climate
density
topography
demographic segmentation
age -generations
income
gender
ethnicity
education
family life cycle
psychographic segmentation
lifestyle
personality
values
attitudes
-activities,interests,opinions,social class
behavioural segmentation
what the cx does relative to the category
business markets
producers, resellers, govt, institutions
segmenting business markets
location
type and size of comapny
type of customer
usage rate/freq
buying org
how product is used
buying centre
segmentation process
- define the broad market
- narrow the market
- select general categories for segmentation
- choose specific segmentation variables within a selected category
- rank variables to use in selected categories
- develop a profile for each segment
- define the broad market
what do my cx want, what can I provide?
- narrow the market
SWOT
- narrow to specific market
- select general cats for seg
which cats to use
- geographic
-demographic
-psychographic
-behavioural
- choose specific variables withing a selected cat
demogrpahics - age, income
psychographic - lifestyle, personality
- rank variable withing each cat
demographics
- 1. age 2. income 3. family life cycle
- define a profile for each segment
target cx
criteria for effective marketing segmentation
- identifiable/differtiable
- measurable - size, purchasing power
- substantial
- accessible
- responsive
STP
segmentation, targeting, postitioning
target market
a group of cx the company decides to focus its marketing efforts on
mass marketing
the idea that the market is just one big segment
micromarketing
comapnies would consdier each cx as a segment
differentiated marketing
AKA multisegment marketing
compnaies identify large distinct froups that share sinilar characteristics
niche marketing
narrow fooccused approach, companies identify a sub segment that has special needs that is typically not large enough for the larger competitors in a market to pursue
positioning
creating a specfic perception in the customers mind relative to other options
positioning statement + 4 elements
clearly spells out the differences between what your company offers customers and what other companies offer and should guide all marketing efforts for a specific target market
- we
- target customer
- key benefit
- competitive reference
perceptual mapping
displaying in two ir more dimensions the location of products, brands, or groups of products in cx mind
repositioning
creating a different perception of the brand in the customers mind relative to the competitors offerings
