Market Segmentation Study Guide

A set of vocabulary flashcards defining key concepts in market approaches, segmentation bases, the MASDA criteria, positioning strategies, and brand behavior.

Mass Marketing

Advertising a single product to an entire audience without tailoring the message to specific groups (e.g., a generic national television commercial).

Target Marketing

Identifying specific groups of consumers with distinct needs and tailoring marketing strategies, messages, and products directly to them.

Consumer Diversity

The idea that consumers have varying needs, interests, incomes, and lifestyles, meaning "one-size-fits-all" marketing rarely succeeds.

Market Segmentation

The process of dividing a total market into smaller, more specific groups based on common traits.

Demographics

Measurable, objective statistical characteristics of a population, such as age, income level, gender, education level, occupation, marital status, and family size.

Psychographics

Mental characteristics, personality traits, and lifestyle choices, including values, beliefs, eco-consciousness, hobbies, personal attitudes, and moral priorities.

Geographics

Location-based characteristics of the target market, such as climate, zip code, urban vs. rural, region, and country.

Behavioral / Usage Level Segmentation

Segmenting based on customer behaviors, brand usage patterns, and buying habits, such as daily vs. monthly users (usage rate), brand loyalty, spending frequency, and holiday buyers.

MASDA Criteria

A set of five criteria (Measurable, Accessible, Substantial, Differentiable, Actionable) that a market segment must meet to be worth targeting.

Measurable (MASDA)

The criterion that you can estimate or measure the total size and purchasing power of the segment using data.

Accessible (MASDA)

The criterion that you can physically or digitally reach the target audience through marketing and distribution channels.

Substantial (MASDA)

The criterion that the segment is large enough (or profitable enough) to justify spending money to target them.

Differentiable (MASDA)

The criterion that the segment responds differently to marketing compared to other segments.

Actionable (MASDA)

The criterion that the company actually has the budget, staff, and resources necessary to execute a campaign for the segment.

Product Positioning

How a brand sets itself apart from competitors in the mind of the customer.

Price-Based Positioning

Emphasizing affordability, budget savings, or discount value (e.g., Walmart: "Save Money. Live Better.").

Benefit-Based Positioning

Highlighting a specific problem the product solves or a benefit it delivers (e.g., Colgate: "Maximum Cavity Protection").

Quality / Premium Positioning

Focusing on superior materials, prestige, high performance, or craftsmanship (e.g., Apple, Rolex).

User-Based Positioning

Crafting the brand identity around a specific type of person or user identity (e.g., Nike targeting athletes).

Competitor-Based Positioning

Directly contrasting the product against a primary market rival.

Brand Loyalty

When a customer repeatedly buys from the same brand due to trust, emotional preference, or strong habit—even when competitor prices fluctuate.

Price Sensitivity

When a customer's purchasing choices are determined almost entirely by finding the lowest available price, rather than loyalty to a brand.