Chapter 7: Segmentation, Targeting, and Positioning Flashcards
Organizing customers based on how they interact with products
Behavioral Segmentation
The division of markets based on consumer characteristics such as , age , gender, income, education, and family size.
Demographic Segmentation
Pursuing multiple market segments with a different strategy for each
Differentiated Targeting
20% of heavy users account for 80% of the total demand
80/20 Rule
Divides markets into groups based on states, nations, regions, and neighborhoods
Geographic Segmentation
Groups consumers with common needs and wants across the world
Global Segmentation
Dividing people into groups based on opinions, interests, and activities
Lifestyle Segmentation
Dividing a existing market into smaller segments with similar characteristics
Market Segmentation
Consumers with shared wants, needs, and characteristics
Market Segments
Pursuing a large portion of a small market
Niche Marketing
Visualizes product locations relative to customers minds
Perceptual Map
Influencing a target markets perception of a product
Positioning
Describes the target market a product is for along with a image of how the firm wants others to see it.
Positioning Statement
Dividing markets using demographics, psychology, and personality traits.
Psychographic segmentation
Dividing consumers into groups based on needs and wants of a specific region or group of countries.
Regional Segmentation
Reestablishing a product’s position based on the current market
Repositioning
A group of consumers that a company directs its marketing towards
Target Market
Evaluating each market segments to determine which maxes out sales.
Targeting
Viewing the marketplace as a single segment
Undifferentiated Targeting
Targets consumers within a single country
Unique Segmentation
Market segmentation helps businesses by..
Defining the needs of their customers, designing specific strategies, and deciding how to allocate resources to gain a profit.
Market Segments must be
Substantial, Measurable, Differentiable, Accessible, and Actionable
Age, Gender, Income, Family / Marital Status
Demographics
Nations, States, Regions, Neighborhoods
Geographic
Psychological traits, motivations, and attiudes
Psychographic
Loyalty, Price Sensitivity, Occasions, Usage Rate
Behavioral
Why do population shifts occur?
Retirement, Natural Disasters, or Economic issues
A segment of current customers that makes up a firms core profit
Heavy Users
Demographic, Geographic, Behavioral
Types of B2B segmentation
Industry, Size of Firm, Ownership structure
B2B Demographic Variables
Global, Regional, Unique
International Segmentation
Growth Potental, Level of Competition, and Strategic Fit
Factors used to select target markets
Analyze competitors positions, define advantages, evaluate feedback
Steps of Marketing Postiotning
How can a firms highlight their goods or services advantages?
Though the relationship between price and quality, product attributes, and application.
