Chapter 6 Flashcards
Market segmentation
The process of analysing a market with the aim of directing marketing focus towards smaller segments of buyers with distinct characteristics or behaviours that might require separate marketing strategies or mixes
Market targeting (targeting)
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Differentiation
Differentiating the market offering to create superior customer value
Positioning
Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers
Geographic segmentation
Dividing a market into different geographical units such as nations, regions, states, local government areas, cities or neighbourhoods
Demographic segmentation
Dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality
Age and life-cycle segmentation
Analysing a market with the aim of directing marketing focus based on different age and life-cycle groups
Gender segmentation
Dividing a market into different segments based on gender
Income segmentation
Dividing a market into different income segments
Psychographic segmentation
Dividing a market into different segments based on social class, lifestyle or personality characteristics
Behavioural segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses or responses to . product
Occasion segmentation
Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries
Target market
A set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Differentiated (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing
Local marketing
Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighbourhoods, and even specific stores
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers - also labelled ‘one-to-one marketing’, ‘customised marketing’ and ‘markets-of-one marketing’
Product position
The way the product is defined by consumers on important attributes; the place the product occupies in consumers’ minds relative to competing products
Competitive advantage
An advantage over competitors gained by offering greater customer value, either through lower prices, or by providing more benefits that justify higher prices
Value proposition
The full positioning of a brand - the full mix of benefits upon which it is positioned
Positioning statement
A statement that summarises company or brand positioning - it takes this form: To (target segment and need) our (brand) is (concept) that (point of difference)
