Chapter 8 Flashcards
Geographic Segmentation
organizes customers into groups based on where they live
Demographic Segmentation
groups consumers according to easily measured, objective characteristics such as age, gender, income, and education
Psychographics
how consumers actually describe themselves
Self-values
goals for life, not just the goals one wants to accomplish in a day; the overriding desires that drive how a person lives his or her life
Self-concept
the image people ideally have of themselves
Lifestyles
how we live our lives to achieve goals
VALS
the most widely used psychographic tool where consumers are classified into eight segments
Geodemographic Segmentation
a combination of geographic, demographic, and lifestyle characteristics to classify consumers
Benefit segmentation
groups consumers on that basis of the benefits they derive from products or services
Occasion Segmentation
behavioral segmentation based on when a product or service is purchased or consumed
Loyalty Segmentation
strategy of investing in loyalty initiatives to retain the firm’s most profitable customers
Undifferentiated Targeting Strategy
when everyone might be considered a potential user of its product
Differentiated Targeting Strategy
target several market segments with a different offering for each
Concentrated targeting strategy
when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs
Micromarketing (one-to-one marketing)
when a firm tailors a product or service to suit an individual customer’s wants or needs, it is undertaking an extreme form of segmentation
