CH 9 -- Market Segmentation, Targeting and Positioning Flashcards
Consumer Products
Products bought by ultimate consumers for personal use
Business Products
Goods and Services purchased for use either directly or indirectly in the production of other goods and services for resale
Market Segmentation
Division of the total market into smaller, relatively homogeneous groups
Market
Group of people with sufficient purchasing power, authority, and willingness to buy
Geographic Segmentation
Division of overall market into homogeneous groups based on their location
Core Based Statistical Area (CBSA)
Collective term for metropolitan and micropolitan statistical area
Metropolitan Statistical Area (MSA)
Freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more
Micropoliation Statistical Area
Area with at least one town of 10,000 to 49,999 people with proportionally few of its residents commuting to an outside area
Consolidated Metropolitan Statistical Area (CMSA)
Urban area that includes two or more PMA’s
Primary Metropolitan Statistical Area (PMSA
Urbanized county or set of counties with social and economic ties to nearby areas
Core Region
Region from which most major brands get 40 to 80 percent of their sales
Geographic Information Systems (GIS)
Software packages that assemble, store, manipulate and display data by their location
Demographic Segmentation
Division of overall market into homogeneous groups base on variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in family life cycle;
also called socioeconomic segmentation
Cohort Efforts
Tendency of members of a generation to be influenced and bound together in events occurring during their formative years
(~17-22)
Video Game Generation
A cohort whose preferences and behaviors were being shaped at the same time as video games
Family Lifecycle
Process of family formation and dissolution
Engel’s Law
Three observations about the impact of household income on consumer spending behavior:
as a household income increases… a smaller percentage of expenditures goes for food; the percentage spent on housing, household operations and clothing remains constant, and the percentage spent on other items (recreation and education) increases
Psychographic Segmentation
Division of the population into groups having similar attitudes, values and lifestyles
AIO Segments
Items on lifestyle surveys that describe various activities, interests and respondents opinions
VALS
Segmentation system that divides consumers into eight psychographic categories: innovators, thinkers, achievers, experiencers, believers, strivers, makers and survivors
Product-Related Segmentation
Division of the population into homogeneous groups based on their relationship to a product
80/20 Principle
Generally accepted rule that 80% of a products revenues come from 20% of its customers
Undifferentiated Marketing
Target Market Strategy 1
Strategy that focuses on producing a single product and marketing it to all customers; also called Mass Marketing
Differentiated Marketing
Target Market Strategy 2
Strategy that focuses on producing several products and pricing, promoting and distributing them with different marketing mixes designed to satisfy smaller segments
Concentrated Marketing (Niche Marketing)
Target Market Strategy 3
Focusing marketing efforts on satisfying a single market segment
Micro Marketing
Target Market Strategy 4
Targeting potential customers at a very narrow, basic levels, such as by zip code, specific occupation or lifestyle– possibly based on individuals themselves
Positioning
Placing a certain product at a certain point or location within a market in minds of prospective buyers
Positioning Map
Tool that helps marketers place products ina market by graphically illustrating consumers perceptions of competing products within an industry
Repositioning
Changing the position of a product within the minds of prospective buyers relative to positions of competing products
