Marketing segmentation, targeting, and positioning Flashcards
It is a subdivision or part of an overall market with specific and distinctive characteristics
Market Segment
It involves grouping various customers into segments that have common needs or will respond similarly to a marketing action
Market Segmentation
It involves finding out that kinds of consumers with different needs exist
Segmentation
Criteria must be met in order for segmentation to be useful
- Substantiality
- Measurability
- Accessibility
- Differentiable
- Actionable
The companies tailor-fit their marketing to the needs and wants of the particular market segment
Market segmentation
It is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants
Market
It means all customers within the segment have similar preferences and characteristics but externally heterogeneous
Internal homogeneity
It means segregating markets by region of the country or the world, market size, market density or climate
Geographic segmentation
It is normally used for geographic segmentation because of its tremendous effect on residents’ needs and purchasing behavior
Climate
It is a market segmentation according to age, race,religion, gender, family size, ethnicity, income, and education
Demographic segmentation
This exert substantial influence over family purchases specifically in food
School-age-children
Members of this generation were born between 1982 to 2003.
Generation Y
Members of this generation were born between 1946 and 1964
Baby boomers
It is a popular target of marketers because of their numbers and income levels.
Baby boomers
Members of this generation were born between 1965 and 1981
Generation X
This group is very family-oriented, well-educated and optimistic
Generation X
They are composed of retirees living on modest incomes
Seniors
Members of this generation were born beyond 1946
Seniors
It is dividing a market into different segments based on gender
Gender segmentation
It is dividing a market into different income segments
Income segmentation
It influences consumers’ wants and determines their buying power
Income
It is a series of stages established through combination of age, marital status and the presence or absence of children
Family life cycle
It divides buyers into different segments based on personality, motives, lifestyles, and geodemographic
Psychographic segmentation
It mirrors a person’s traits, attitudes, and habits
Personality
It is a need that is sufficiently pressing to direct the person to seek satisfaction
Motives
It is a person’s way of living and describes how an individual spends his time, the importance of things around him, his beliefs and socioeconomic characteristics like income and education
Lifestyle
It divides the potential market into neighborhood lifestyles
Geodemographic
This manner of segmentation combines geographic, demographic, and lifestyle segmentations
Geodemographic
It divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product
Behavioral segmentation
It involves breaking a market into segments and then concentrating marketing efforts on one or a few key segments
Market Targeting
It is a strategy that uses two or more marketing mixes to target two or more market segments
Multisegment Targeting
It is the most sought after target market strategy because it has the potential to generate sales volume, higher profits, larger market share and economies of scale in manufacturing and marketing
Multisegment Targeting
It focuses all marketing efforts on a single market segment
Concentrated Targeting strategy
It assumes that all members of a market have similar needs that can be met with a single marketing mix
Undifferentiated targeting
It occurs when the marketer ignores the apparent segment differences that exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible
Undifferentiated Targeting
It is tailoring a product to the specific needs of an individual customer
Customized targeting
It is developing a product and brand image in the minds of consumers
Market Positioning
It is competing directly with competitors on similar product attributes in the same target markets
Head-to-Head positioning
It seeks a less competitive smaller market niche in which to position the brand
Differentiation positioning
It is a technique of attempting to determine through graphing how different product brands are perceived by consumers when mapped or compared against two or more product dimensions
Perceptual mapping
bases for positioning which a company may use
Attribute
Price and quality
Use or application
Product User
Product class
Competitor
Emotion
It is a brief description of the target market as well as a convincing picture of how the company wants that market to perceive the brand
Positioning statement
It is a guidepost for the marketing efforts
A good positioning statement
It helps maintain focus on the brand and its value proposition while working on market
A good positioning statement
Bases of segmenting business markets
Geographical location
Company Size
Usage rate
End-user application
Type of buying situation
