Chapter 9 Flashcards
Market Segmentation
Involves aggregating prospective buyers into groups, or segments, that 1 have common needs and 2 will respond similarly to a marketing action.
Market-Production Grids
Framework to relate the market segments of potential buyers to products offered or potential marketing actions.
Usage Rate (Frequency Marketing)
The quantity consumed or patronage (store visits) during a specific period
80/20 Rule
A concept the suggest 80% of a firms sales are obtained from 20% of its customers.
Customer Lifetime Value (CLV)
Represents the financial worth of a customer to a company over the course of their relationship
Personas
Character description of a brand typical customers
Product Positioning
Place a product occupies in consumers minds based on important attributes relative to a competitive products.
Product Repositioning
Involves changing the place a product occupies in a consumers mind relative to competitive products.
Perceptual Map
Mean of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products, as well as the firms own.
Link Needs to Actions Step 1:
Group potential buyers into segments
Link Needs to Actions Step 2:
Group products to be sold into categories
Link Needs to Actions Step 3:
Develop a market-product grid and estimate size of markets
Link Needs to Actions Step 4:
Select target markets
Link Needs to Actions Step 5:
Take marketing actions to reach target markets
