Marketing - Chapter 6

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market targeting

Evaluating each market segment’s attractiveness and selecting one or more segments to serve

Differentiation

Designing the market offering to create superior customer value that is distinct from that offered by competitors

Positioning

Creating a clear, distinctive, and desirable place for a marketing offer relative to competing products in the minds of target consumers

Geographic segmentation

Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

Demographic segmentation

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

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 or gender identity

Income segmentation

Dividing a market into different income segments

Psychographic segmentation

Dividing a market into different segments based on lifestyle or personality characteristics

Behavioral segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, 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

Target market

The total set of targeted buyers across the market segments that a company decides to serve

Undifferentiated marketing

A market-coverage strategy in which a firm decides to ignore market segment difference and go after the whole market with one offering

Differentiated marketing

A market-coverage strategy in which a firm targets several market segments and designs separate offerings for each

Concentrated marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes hyperlocal marketing and individual marketing

Hyperlocal marketing

Location-based targeting to consumers in specific locations using digital, mobile and social media technologies

Individual marketing

Tailoring products and marketing programs to the needs and preferences of individual customers

Product positioning

The way a product is defined by consumers on important attributes - the place it occupies in consumers’ minds relative to competing products

Competitive advantage

An advantage over competitors gained by differentiating and positioning a company as providing superior or different customer value

Value proposition

The full positioning of a brand - the mix of benefits on which it is positioned

Positioning statement

A statement that summarizes company or brand positioning using this form: For, who, our product is, which provides, unlike, our product