Chapter 7: Marketing Principles

Market segmentation

involves 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 (or targeting)

consists of evaluating each market segment’s attractiveness and selecting one or more market segments to serve.

Differentiation

involves actually differentiating the firm’s market offering to create superior customer value

Positioning

the quest for a market offering to occupy a clear, distinctive, and desirable place in the minds of target consumers

hyperlocal social marketing

location-based targeting to consumers in local communities or neighborhoods using digital and social media

Demographic segmentation

divides 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

offering different products or using different marketing approaches for different age and life-cycle groups

Gender segmentation

has long been used in marketing clothing, cosmetics, toiletries, toys, and magazines

Psychographic segmentation

divides buyers into different segments based on lifestyle or personality characteristics

Behavioral segmentation

divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product

Occasion segmentation

grouped according to occasions when they get the idea to buy, actually make their purchases, or use the purchased items

undifferentiated marketing

(or mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer

differentiated marketing

(or segmented marketing) strategy, a firm targets several market segments and designs separate offers for each

concentrated marketing

(or niche marketing) strategy, instead of going after a small share of a large market, a firm goes after a larger share of one or a few smaller segments or niches

Micromarketing

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and local customer segments

Product positioning

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

individual marketing

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

target market

consists of a set of buyers who share common needs or characteristics that a company decides to serve