Chapter 8 Flashcards
Market Segmentation
Aggregates potential buyers into groups that have common needs and will respond similarly to a marketing action
Market segments
th erelatively homogeneous groups of prospective buyers that result from the market segmentation process
Product differentiation
The strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products
Market Product Grid
a framework relating the segments of a market to products or marketing actions of the firm
What are the three market segmentation strategies?
- One product and multiple segments
- Multiple products and multiple segments
- segments of one, or mass customization
Organization Synergy
the customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently
What is the first step of the segmentation process?
Group potential buyers into segments
What are some criteria used to group potential buyers into segments?
simplicity and cost effectiveness Potential for increased profit Similarity of needs Differences of needs amoung segments Potential of marketing action
What are ways to segment the comsumer market?
geographic segmentation
demographic segmntation
psychographics segmentation
behavioral semgnetation
What are the two aspects of behavioral segmentation?
product features
usage rate
80/20 rule
80% of sakes comes from 20 percent of users
What is the second step of the segmentation process?
Group products to be sold into categories
What is the third step of the segmentation process
Develop a market-product grid and estimate the size of the markets
What is the fourth step in the segmentation process
select the target market
What are the criteria used in selecting the target segments
Market size Expected growth Competitive position Cost of reaching the egment Compatibility with the organization's objectives and resources
