Marketing Segmentation, Positioning, and Targeting

Flashcards covering key concepts in marketing segmentation, targeting, and positioning.

Marketing Segmentation

The process of dividing a target market into smaller groups of consumers or organizations who have common needs and are expected to respond similarly to a marketing action.

Segmentation

Identify and describe market segments.

Four major types of segmentation

Graphic segmentation”where”, demographic segmentation “who”, behavioral segmentation “how”, psychographic segmentation “why”

Targeting

Evaluate segments and decide which to pursue.

Positioning

Develop a marketing mix to create competitive advantage.

Geographic Segmentation

Segments the market based on location, such as cultural preferences, climate, and population density.

Demographic Segmentation

Segments the market based on characteristics such as age, gender, income, education, and family structure.

Behavioral Segmentation

Segments the market based on consumer behaviors, such as occasion-based, benefits sought, and usage rate.

Psychographic Segmentation

Segments the market based on personality, lifestyle, interests, and values.

Buyer Persona

A semi-fictional representation of an ideal customer used to help marketers understand their target market.

Target market

A market that highlights the differences between groups so that you can decide which group to focus your marketing efforts and resources on

What are the two types of positioning strategies?

Market positioning, value positioning

marketing positioning

Find the marketing mix so customers have clear understanding that the product does

Value Positioning

Communicate customer benefits of receiving the product

Mass Marketing

A marketing strategy that targets the overall market without segmentation, often applied to commodity products.

Differentiated Marketing

A strategy where a company targets multiple market segments with different offerings for each.

Concentrated Marketing

A niche marketing strategy focusing on a single segment with a specialized marketing mix.

Micromarketing

One-to-one customization of marketing efforts tailored to individual customers.

Positioning Statement

A statement that describes a product, service, brand, and target market to clarify the value proposition.

Perceptual Mapping

A visual representation of a product's position relative to competitors based on consumer attributes.

Value Proposition

Communicates the customer benefits to be received from a product or service.