Ch 6 - Market Segmentation, Targeting, and Positioning Flashcards
geographic segmentation
grouping of consumers on basis of where they live
demographic segmentaion
grouping of consumers according o easily measured, objective characteristics such as age, gender, income
psychographics
segmentation base delves into how consumers describe themselves; allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices
self values
goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
self concept
image a person has of himself, component of psychographics
lifestyle
how we live our lives to achieve goals
VALS^tm
psychographical tool developed by strategic business insights, classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors
behavioral segmentation
groups consumers based on benefits they derive from products, their usage rate, loyalty, and the occasion
occasion segmentation
groups consumers based on when they purchase or consumer product or service
benefit segmenation
groups consumers based on benefits they derive from products
loyalty segmentation
strategy of investing in retention and loyalty initiatives to retain firm’s most profitable customers
geodemographic segmentation
grouping of consumers on basis of a combination of geographic, demographic, and lifestyle characteristics
PYSTE clusters
grouping of all neighborhoods in canada into 60 different lifestyles clusters
undifferentiated targeting strategy (mass marketing)
marketing strategy a firm can use if product is perceived to provide same benefits to everyone, with no need to develop separate strategies for different groups
differentiated targeting strategy
strategy through which firm targets several market segments with different offering for each
concentrated/niche targeting strategy
marketing strategy of selecting single, primary targe market and focusing all energies on providing product to fit market’s needs
micromarketing (one to one) marketing
an extreme form of segmentation that tailors a product or service to suit an individual customer’s needs or wants
mass customization
practices of interacting on a one to one basis with many people to create custom made products or services, providing one to one marketing to the masses
positioning
mental pictue that people have about company and its products or services relative to competitors
positioning statement
expresses how company wants to be perceived by consumers
perceptual map
displays in two or more dimensions, the position of products or brands in consumer’s mind
ideal point
position at which particular market segment’s ideal product would lie on a perceptual map
brand repositioning (Rebranding)
strategy in which marketers change brand’s focus to target new markets or realign brand’s core emphasis with changing market preferences
