Chapter 7 Segmenting, Targeting and Positioning Flashcards
market
people or organizations with:
needs or wants and willingness to buy
people with need or wants and willingness to buy
market segment
A subgroup of people or organizations:
sharing one or more characteristics causing them to have similar needs
a subgroup of people with similar characteristics causing them to have similar needs
market segmentation
the process of dividing a market into:
meaningful, relatively similar and identifiable segments or groups
the process of dividing a market into meaningful segments or groups
segmentation bases(variables)
characteristics of individuals, groups, or organizations
demographic segmentation
segmenting markets by:
-age
-gender
-income
-ethnic background
-occupation
-family life cycle (stages determined by age, marital status and presence or absence of children)
geographic segmentation
segmenting markets by:
-region/country
-market size
-market density
-climate
family life cycle (FLC)
stages determined by:
-age
-marital status
-presence or absence of children
psychographic segmentation
segmenting markets by:
-personality
-motives
-lifestyle
-geodemographic ( geographic and demographic)
geodemographic segmentation
segmenting markets by:
segmenting potential customers by neighbourhood lifestyles
-clusters potential customers by neighbourhood lifestyle categories
ex) lululemon places its first store in kits where all the hippies and weird yoga people are living.
benefit segmentation
segmenting markets by:
grouping customers according to the benefits they seek from the product
ex) if someone buys athletic clothing for comfort vs if someone buys the clothes for their technology and moisture-wicking properties.
usage-rate segmentation
segmenting markets by:
- the amount of product bought or consumed
Pareto Principal (80/20) Rule
a principal that:
20 percent of all customers generate around 80 percent of the demand
satisficers
business customers who places their order with the first familiar supplier
business customers who go with the first known supplier
optimizers
business customers who consider numerous supplies, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one
business customers who consider numerous suppliers
undifferentiated targeting strategy
views market as one big market
(no individual segments) uses (single marketing mix) the 4 p’s
concentrated targeting strategy
targets one segment of the market
niche
one segment of a market
multisegment targeting strategy
chooses 2+ marketing segments and develops a distinct marketing mix
choosing two or more segments and developing a marketing mix
cannibalization
sales of a new product cut into sales of a company’s existing product
*potential cost of multisegment targeting
one-to-one marketing
individualized marketing method (company and customer relationship)
-to build long-term personalized and profitable relationships
individualized marketing method with a company-customer relationship
positioning
influences potential customer’s overall perception of a brand a product line or an organization in general
the process that influences potential customer’s overall perception of a brand
position
the place a product, brand or group of products occupies in consumers minds relative to competing offerings
consumer ranking on where the company/product/brand sits in comparison to others
ex) customers might place apple phones higher than google phones for their OLED display
product differentiation
a positioning strategy that some companies use to distinguish their products from those of competitors
a positioning strategy that some company uses to distinguish their products from their competitors
perceptual mapping
displaying or graphing, in two or more dimensions:
*the location of products, brands or groups of products in customer’s minds
displaying or graphing in two or more dimensions based on what the consumers think about the brands/group/product
