Chapter 6 Flashcards
behavioural segmentation
Groups consumers based on the benefits they derive from products or services, their usage rate, their loyalty, and the occasion.
benefit segmentation
Groups consumers based on the benefits they derive from products or services.
brand repositioning (rebranding)
A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.
concentrated (or niche) targeting strategy
A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs.
demographic segmentation
The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
differentiated targeting strategy
A strategy through which a firm targets several market segments with a different offering for each.
geodemographic segmentation
The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.
geographic segmentation
The grouping of consumers on the basis of where they live.
ideal point
The position at which a particular market segment’s ideal product would lie on a perceptual map.
lifestyle
Lifestyles are how we live our lives to achieve goals.
loyalty segmentation
Strategy of investing in retention and loyalty initiatives to retain the firm’s most profitable customers.
mass customization
The practice 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.
micromarketing (one-to-one)
A form of segmentation that tailors a product or service to suit an individual customer’s wants or needs.
occasion segmentation
Groups consumers based on when they purchase or consume a product or service.
perceptual map
Displays, in two or more dimensions, the position of products or brands in the consumer’s mind.
positioning
The mental picture that people have about a company and its products or services relative to competitors.
positioning statement
Expresses how a company wants to be perceived by consumers.
psychographics
This 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 (behaviour) and what underlying psychological reasons determine those choices.
self-concept
The image a person has of himself or herself; a component of psychographics.
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.
undifferentiated targeting strategy (mass marketing)
A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.
VALS
A psychological tool developed by Strategic Business Insights that classifies consumers into eight segments: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.
value proposition
Communicates the customer benefits to be received from a product or service and the reason(s) for wanting to buy it.
