Chapter 2 Flashcards
distinct consumer groups within a market who have common needs
Market Segments
analyzing competition in the marketplace and searching for competitive advantage
Competitive Analysis
attributes that give a firm an edge over competitors (better quality products, superior customer service)
Competitive Advantage
done after evaluating market opportunities and doing a competitive analysis
Target Market Selection
dividing a market into distinct groups with common needs, who respond similarly to a marketing situation
Market Segmentation
dividing market basis of region, city size, metropolitan area, or density
Geographic Segmentation
dividing market basis on age, sex, family size, marital status
Demographic Segmentation
dividing market on basis of personality, lifecycles, or lifestyles
Psychographic Segmentation
dividing consumers into groups according to usage, loyalties, or buying responses to a product
Behavioristic Segmentation
20% of buyers account for 80% of sales volume
80 to 20 Rule
grouping of consumers on basis of attributes sought in a product
Benefit Segmentation
offering just one product or service to entire market
Undifferentiated Marketing
developing separate marketing strategies for different segments
Differentiated Marketing
attempting to capture a large share of one market segment
Concentrated Marketing
fitting product of service to one or more segments of a broad market to make it unique within the marketplace
Market Positioning
linking product with benefits consumer will derive
Focus on Consumer
positioning product by comparing benefit it offers to the competition
Focus on Competition
sets brand apart from competitors on basis of specific characteristics or benefits offered
Positioning by Product Attributes and Benefits
important to consumers and are basis for making a purchase decision
Salient Attributes
makes the brand easily identifiable and differentiated from others
Positioning by Cultural Symbols
used to enter market or expand usage
Positioning by Use or Application
cost is secondary to quality, quality at a very competitive price
Positioning by Price/Quality
altering a product’s or brand’s position due to declining or stagnant sales or anticipated opportunities in other market positions
Repositioning
what a product or brand means to consumers; what consumers experience in purchasing and using a product
Product Symbolism
