Chapter 8 Flashcards
80/20 principle
20 percent of all customers generate 80 percent of the demand
benefit segmentation
grouping customers into market segments according to the benefits they seek from the product
cannibalization
sales of a new product cut into sales of a firm’s existing product
concentrated targeting strategy
select one segment of a market for target marketing efforts
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle.
family life cycle
age, marital status, and the presence or absece of children
geodemographic
segmenting potential customers into neighborhood lifestyle categories
geographic seg.
segmenting markets by region of a country or the world, market size, market density or climate
multisegment target strategy
chooses 2 or more well defined market segments and develops a distict marketing mix for each
niche
one segment of a market
optimizers
consider numerous suppliers (both familar and unfamiliar) solicit bids, and study all proposals carefully before selecting one
perceptual mapping
displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
positioning
specific marketing mix to influence to influence potential customers’ overall perception of a bran, product line, or organization in general.
product differentiation
some firms use to distinguish their product from those competitors
psychographic segmentation
segmenting marketing on the basis of personality, motives
