Chapter 9: segmentation and target marketing Flashcards
segmentation
identifying and serving homogeneous groups of consumers
segments
naturally or existing groups of consumers with similar needs/wants and responses
target market
the segment your firm chooses to serve
geographic segmentation
customers into groups based on where they live
demographic
easily measured , objective characteristics such as age, gender, income, and education
psychographic
how consumers describe themselves- how ppl self select based on characteristics of how they choose to occupy their time and what underlying psych reasons determine those choices
self calues
goals for life, need for respect, fulfillment, etc.
self-concept
image people ideally have of themselves, display product within lifestyle consumers seek
lifestyles
the way we live- how we live our lives to achieve goals
value and lifestyle survey
8 segments
- vertical=resources
- horizontal=psychological motivation for buying
- 3 motivations- ideals, achievement, self-expression
benefit segmentation
benefits consumers derive from products/services
ie, producers know that people go to the theater for diff interests
behavioral segmentation
divides customers into groups on the basis of how they use the product or service- occasion and loyalty
occasion
when a product or service is consumed
loyalty
retain loyal customers- competitors are excluded, invest in retention and loyalty initiatives
using multiple segmentation methods
using demographics and geography to identify and target marketing communications to customers, ten using benefits or lifestyles to design the product/service and the substance of the marketing message
geodemographic segmentation
geo, demo, and lifestyle characteristics to classify cons
undifferentiated targeting strategy
aka mass marketing, when everyone might be considered a potential user of its product- focuses on similarities in needs of customers
differentiated targeting
target several market segments with a different offering for each
concentrated targeting strategy
when an organization selects a singly, primary target makret and focuses all its energies on providing a product to fit that market’s needs
micromarketing
when a firm tailors a product or service to suit an individual’s wants/needs
cookies
small text files a website stores in a visitor’s browser, provide a unique identification of each potential customer who visits and details how the customer has searched the site
value proposition
communicates customer benefits to be received from a product or service–> reasons for wanting to purchase it
value
reflects the relationship of benefits to costs, or what the consumers get for what she/he gives
perceptual map
displays in 2 or more dimensions, the position of products or brands int he consumer’s mind
