Chapter 7 Terms Flashcards
Market Fragmentation
The creation of many consumer groups due to a diversity of distinct needs and wants in modern society
Target Marketing Strategy
Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments
Segmentation
The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
Segmentation Variables
Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences
Demographics
Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure
Generational Marketing
Marketing to members of a generation, who tend to share the same outlook, values, and priorities
Generation Z
The group of consumers born after 1994
Generation Y
The group of consumers born between 1979 and 1994
Generation X
The group of consumers born between 1965 and 1978
Baby Boomers
The segment of people born between 1946 and 1964
Buying Power
A concept in segmentation that can help marketers to determine how to better match different products and versions of products to different consumer groups based on an understanding of what discretionary and nondiscretionary allocations of funds they are able to make
Content Marketing
The strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics
Geographic Segmentation
An approach in which marketers tailor their offerings to specific geographic areas because people’s preferences often vary depending on where they live
Geodemography
A segmentation technique that combines geography with demographics
Micromarketing
The ability to identify and target very small geographic segments that sometimes amount to individuals
Psychographics
The use of psychological, sociological, and anthropological factors to construct market segments
VALS
A psychographic segmentation system that divides U.S. adults into eight groups according to what drives them psychologically as well as by their economic resources
Behavioral Segmentation
A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service
User Status
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Usage Rate
A measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service
Usage Occasions
An indicator used in behavioral market segmentation based on when consumers use a product most
Organizational Demographics
Organization-specific dimensions that can be used to describe, classify, and organize different organizations for the purpose of segmenting business-to-business markets
Targeting
A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers
Target Market
The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
Segment Profile
A description of the “typical” customer in a segment
Undifferentiated Targeting Strategy
Appealing to a broad spectrum of people
Differentiated Targeting Strategy
Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace
Concentrated Targeting Strategy
Focusing a firm’s efforts on offering one or more products to a single segment
Mass Customization
An approach that modifies a basic good or service to meet the needs of an individual
Competitive Advantage
A firm’s edge over its competitors that allows it to have higher sales, higher profits, more customers and enjoy greater success year after year
Differentiation
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Repositioning
Redoing a product’s position to respond to marketplace changes.
Perceptual Map
A technique to visually describe where brands are “located” in consumers’ minds relative to competing brands
