Customer-Driven Marketing Strategy Flashcards

Flashcards based on Customer-Driven Marketing Strategy lecture notes.

Market Segmentation

Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Geographic segmentation

Dividing the market into different geographical units such as nations, regions, states, 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.

Psychographic segmentation

Dividing a market into different segments based on social class, 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.

Occasions segmentation

Segments based on occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Benefits sought segmentation

Segments based on the different benefits that consumers seek from the product.

User status segmentation

Segments based on nonusers, ex-users, potential users, first-time users, and regular users of a product.

Usage rate segmentation

Segments based on light, medium, and heavy product users.

Loyalty status segmentation

Segments based on consumer loyalty to brands, stores, and companies.

Multiple segmentation

Using multiple segmentation variables to identify smaller, better-defined target groups.

Business market segmentation variables

Additional variables for segmenting business markets including customer operating characteristics, purchasing approaches, situational factors, and personal characteristics

International market segmentation

Segmenting international markets based on geographic location, economic factors, political and legal factors, and cultural factors.

Intermarket segmentation

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Measurable

The segment must be measurable in terms of size, purchasing power, and profile.

Accessible

The segment must be accessible and can be effectively reached and served.

Substantial

The segment must be substantial enough in size to be profitable.

Differentiable

The segment should be differentiable and respond differently to different marketing mix elements and programs.

Actionable

Effective programs can be designed for attracting and serving the segments

Target market

A set of buyers who share common needs or characteristics that the company decides to serve.

Undifferentiated marketing

Targets the whole market with one offer, focusing on common needs rather than what’s different.

Differentiated marketing

Targets several different market segments and designs separate offers for each.

Concentrated marketing

Targets a large share of a smaller market, focusing on niches.

Micromarketing

Tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Local marketing

Tailoring brands and promotion to the needs and wants of local customer segments.

Individual marketing

Tailoring products and marketing programs to the needs and preferences of individual customers. Also known as one-to-one marketing.

Product position

The way the product is defined by consumers on important attributes.

Positioning maps

Show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.

Competitive advantage

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Value proposition

The full mix of benefits upon which a brand is positioned.