Chapter 5: Targeted Marketing vs. Mass Marketing Flashcards
market segmentation
process of breaking down all consumers into groups of potential buyers with similar characteristics.
targeted marketing
choosing select groups of people and organizations to sell to; aka differentiated marketing
mass marketing
involves selling the same product to everybody; aka undifferentiated marketing.
One-to-One Marketing
forming close, personal relationships with customers and giving them exactly what they want (rifle approach with a scope).
Steps in One-to-One Marketing
- establish short-term measures to evaluate your efforts
- identify your customers
- differentiate among your customers
- interact with your customers, targeting your best ones
- customize your products and marketing messages to meet their needs
segmentation bases
criteria to classify buyers in order to get a fuller picture of its customers and create real value for them.
behavioral segmentation
divides people and organization into groups according to how they behave with or act toward products.
Four Types of Segmentation
Behavioral, demographic, geographic, psychographic
Demographic segmentation
segmenting buyers by tangible, personal characteristics, such as their ages, incomes, ethnicity, family sizes, etc.
retro brands
`old brands or products that companies “bring back” for a period of time.
advergames
electronic games sellers create to promote a product or service.
Family Life Cycle
refers to the stages families go through over time and how it affects people’s buying behavior.
segmenting by demographics uses variables such as:
age, income, gender, family life cycle, ethinicity
geographic segmentation
segmenting buyers by where they are located.
geocoding
process that takes data such as this and plots it on a map
