Chapter 8: Customer-Driven Marketing Strategy: Creating Value for Target Customers Flashcards
Market Targeting (Targeting)
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Market Segmentation
Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviours that may require separate marketing strategies or mixes.
Differentiation
Differentiating the market offering to create superior customer value.
Positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Geographic Segmentation
Dividing a market into different geographical units, such as nations, regions, provinces, counties, cities, or even neighbourhoods.
Demographic Segmentation
Dividing a market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Age and Life-Cycle Segmentation
Dividing a market into different age and life-cycle groups.
Gender Segmentation
Dividing a market into different segments based on gender.
Income Segmentation
Dividing a market into different income segments.
Psychographic Segmentation
Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
Behavioural Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Occasion Segmentation
Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
Benefit Segmentation
Dividing the market into segments according to the different benefits that consumers seek from the product.
Intermarket Segmentation (Cross-Market Segmentation)
Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries.
Target Market
A set of buyers who share common needs or characteristics that the company decides to serve.
Undifferentiated (Mass) Marketing
A market-coverage strategy in which a firm decides to ignore market segmentation differences and target the whole market with one offer.
Differentiated (Segmented) Marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (Niche) Marketing
A market-coverage strategy in which a firm goes after a large share of one or a few smaller segments or niches.
Micromarketing
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Local Marketing
Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighbourhoods, and even specific stores.
Individual Marketing
Tailoring products and marketing programs to the needs and preferences of individual customers; also called one-to-one marketing, mass customization, and markets-of-one marketing.
Product Position
The way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products.
Competitive Advantage
An advantage over competitors gained by offering greater customer value, either by having lower prices, or providing more benefits that justify higher prices.
Value Propositon
The full positioning of a brand - the full mix of benefits on which it is positioned.
Positioning Statement
A statement that summarizes company or brand positioning. It takes this form: To (target segment and need) our (brand) is (concept) that (point of difference).
