Chapter 9

behavioral segmentation

Segmentation method that divides customers into groups based on how they use the product or service

benefit segmentation

Grouping of consumers on the basis of the benefits they derive from products or services

Concentrated targeting strategy

Strategy of selecting a single primary target market and focusing all energies on providing a product to fit that market’s needs

demographic segmentation

Grouping of consumers according to easily measured, objective characteristics such as age or gender

differentiated targeting strategy

Strategy through which a firm targets several market segments with a different offering for each

geodemographic segmentation

Grouping of consumers on the basis of a combination of geographic, demographic and lifestyle characteristics

geographic segmentation

Grouping of consumers on the basis of where they live

ideal point

The position at which a particular market segment’s ideal product would lie on a perceptual map

loyal segmentation

Strategy of investing in loyalty initiatives to retain the firm’s most profitable customers.

market positioning

Process of defining the marketing mix variables so that target customers have a clear understanding of what the product does or represents in comparison with competing products

micromarketing

An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs (one-to-one marketing)

occasion segmentation

Type of behavioral segmentation based on when a product or service is purchased or consumed

perceptual map

Displays, in two or more dimensions the position of products or brands in the consumer’s mind

psychographic segmentation

Method of segmenting customers based on how they spend their time and money, what their hobbies are, and their attitudes and opinions.

psychographics

Looks at how consumers describe themselves; allowing people to describe themselves using those characteristics that help explain their behavior and what psychological reason determine those characteristics.

self-concept

The image a person has of themself

self-value

Goals for life, explaining what drives a person to live their life the way that they do.

undifferentiated targeting strategy (mass marketing)

Marketing strat firms use if the product or service is perceived to provide some benefits to everyone and not just one specific group of people.

value

Reflects the relationship of benefits to costs (what some gets for what they give)

value proposition

Unique value that a product provides to its customers and how it is better than and different from their competitors product

Values and Lifestyles Survey

A psychographic tool that classifies consumers into eight segments, (innovators, thinkers, believers, achievers, strivers, experiencers, makers or survivors)