chapter 6 Flashcards
market segmentation
identifying and profiling distinct groups of buyers who differ in their needs and wants.
market targeting
selecting one or more market segments to enter.
market positioning
establishing, communicating, and delivering the right benefits to each target segment.
market segment
group of customers who share a similar set of needs and wants. both descriptive and behavioural characteristics are used to segment the market.
geographic segmentation
divides markets into geographical units such as nations, states, regions, countries, cities, and neighbourhoods.
grassroots marketing
where marketers concentrate on making activities as personally relevant to individual customers as possible.
customer cloning
assuming that the best prospects live where most of the customers already come from.
demographic segmentation
demographic variables are often used because they are often associated with consumer needs and wants, and they are easy to measure. marketers often use age and lifecycle stage, life events, gender, income, generation, and race and culture to segment markets.
multicultural marketing
an approach recognising that different ethnic and cultural segments have sufficiently different needs and wants to require targeted marketing activities.
psychographic segmentation
buyers are divided into groups on the basis of personality traits.
psychographics
the science of using psychology and demographics to better understand consumers.
behavioural segmentation
where buyers are divided into groups of the basis of their knowledge of, attitude toward, use of, or response to a product. behaviour variables can include needs or benefits, decision roles, and user and usage.
split loyals
consumers who are loyal to two or three brands.
flexible market offering
consists of two parts: a naked solution containing the product and service elements that all segment members value and discretionary options that some segment members value.
user and usage-related variables
- occasion
- user status
- usage rate
- buy-readiness stage
- loyalty status
- attitude
segmentation variables
business markets can be divided into segmentation variables:
1. demographic
2. operating variables
3. purchasing approaches
4. situational factors
5. personal characteristics
useful market segment criteria
to be useful, market segments must rate favourably on five key criteria:
1. measurable
2. substantial
3. accessible
4. differentiable
5. actionable
porter’s five forces
determine the intrinsic long-run attractiveness of a market or market segment
1. threat of intense segment rivalry
2. threat of potential entrants
3. threat of substitutes
4. threat of buyers’ growing bargaining power
5. threat of suppliers’ growing bargaining power
full market coverage
a firm attempts to serve all customer groups with all the products they might need. this can be differentiated (sells different products to different segments) or undifferentiated (ignores segment differences and has one offer).
selective specialisation
when a firm selects a subset of all the possible segments, each objectively attractive and appropriate.
supersegment
a set of segments sharing some exploitable similarity.
product specialisation
the firm sells a certain product to several different market
segments.
market specialisation
the firm concentrates on serving many needs of a particular
customer group.
single-segment concentration
the firm markets to only one particular segment. through concentrated marketing, the firm gains deep knowledge
of the segment’s needs and achieves a strong market presence.
niche
more narrowly defined customer group seeking a distinctive mix of benefits within a segment. marketers usually identify niches by dividing a segment into subsegments.
mass customisation
the ability of a company to meet each customer’s requirements to prepare individually designed products, services, programs, and communications on a mass basis. there is a four-step framework for one-to-one marketing.
socially responsible marketing
calls for targeting that serves not only the company’s interests but also the interests of those targeted.
