Chapter 6 Vocabulary Flashcards
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Market segmentation
Evaluating each market segments attractiveness and selecting one or more segments to serve
Market targeting
Actually differentiating the market offering to create superior customer value
Differentiation
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Positioning
Dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighborhoods
Geographic segmentation
Diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Demographic segmentation
Dividing a market into different age and life-cycle groups
Age and life cycle segmentation (demographic)
Dividing a market into different segments based on gender
Gender segmentation (demographic)
Diving a market into different income segments
Income segmentation (demographic)
Dividing a market into different segments based on social class, lifestyle, or personality characteristics
Psychographic segmentation
Dividing a market into segments based on consumer knowledge, attitudes causes of a products, or responses to a product
Behavioral 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
Occasion segmentation (behavioral)
Dividing the market into segments according to the different benefits that consumers seek from the product
Benefit segmentation (demographic)
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
Inter market (cross-market) segmentation
Requirements for effective segmentation
Measurable Accesible Substantial Differentiable Actionable
The size, purchasing power and profiles of the segments can be measured
Measurable
The market segments can be effectively reached and served
Accesible
The market segments are large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program
Substantial
The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs
Differentiable
Effective programs can be designed for attracting and serving the segments
Actionable
A set of buyers sharing common needs or characteristics that the company decides to serve
Target market
A market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Undifferentiated (mass) marketing
A market coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Differentiated (segmented) marketing
A market coverage strategy in which a firm goes after a large share of one or a few segments or inches
Concentrated (niche) marketing
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Micro-marketing
Tailoring brand and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores
Local marketing (micro-marketing)
Tailoring products and marketing programs to the needs and preferences of individual customers
Individual marketing
How a product is defined by consumers on important attributes—the place a product occupies in consumers minds relative to competing products
Product position
An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
Competitive advantage
The full positioning of a brand—the full mix of benefits on which it is differentiated and positioned
Value proposition
A statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)
Positioning statement
