Chapter 8 Flashcards
People or organizations with needs or wants and the ability and willingness to buy
Market
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Market Segment
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
Market Segmentation
Substainability
Identifiability and measurability
Accessibility
Responsiveness
Criteria for Successful Segmentation
Characteristics of individuals, groups, or organizations
Segmentation bases (variables)
Segmenting markets by region of a country or the world, market size, market density or climate.
Geographic Segmentation
Segmenting markets by age, gender, income, ethnic backgrounds, and family life cycle.
Demographic Segmentation
A series of stages determined by a combination of age, marital status, and the presence or absence of children
Family Life Cycle
Market segmentation on the basis of personality, motives, lifestyles, and geodemographic
Psychographic Segmentation
Segmenting potential customers into neighborhood lifestyle categories
Geodemographic Segmentation
The process of grouping customers into market segments according to the benefits the seek from the product.
Benefit Segmentation
Dividing a market by the amount of product bought or consumed.
Usage-rate Segmentation
A principle holding that 20 percent of all customers generate 80 percent of the demand
80/20 principle
Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
Satisficers
Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals before selecting one
Optimizers
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
Target Market
A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
Undifferentiated Targeting Strategy
A strategy used to select one segment of a market for targeting marketing efforts
Concentrated Targeting Strategy
One segment of a market
Niche
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
Multisegment Targeting Strategy
A situation that occurs when sales of a new product cut into sales of a firm’s existing products.
Cannibalization
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer
One to one Marketing
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
Positioning
The place a product occupies in consumer’s minds relative to competing offerings
Position
A positioning strategy that some firms use to distinguish their products from those of competitors
Product differentiation
A means of displaying or graphing in two or more dimensions, the location of products, brands, or groups of products in customer’s minds
Perceptual mapping
Changing consumer’s perceptions of a brand in relation to competing brands
Repositioning
