CHAPTER 6 Marketing: An Introduction by Gary Armstrong & Philip Kotler

Market segmentation

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

Evaluating each market segment's attractiveness and selecting one or more segments to serve

Differentiation

Differentiating the market offering to create superior customer value

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Geographic segmentation

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

Age and life-cycle segmentation

Dividing a market into different age and life-cycle groups

Gender segmentation

Dividing a market into different segments based on gender

Income segmentation

Dividing a group into different income segments

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

Occasion segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Benefit segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product

Intermarket (cross-market) segmentation

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

Target market

A set of buyers sharing common needs or characteristics that the company decides to serve

Undifferentiated (mass) marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Differentiated (segmented) marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Concentrated (niche) marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Local marketing

Tailoring brands and marketing to the needs and wants of local customer segments-- cities, neighborhoods, and even specific stores

Individual marketing

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

Product position

How a product is defined by consumers on important attributes-- the place the product occupies in consumers' minds relative to competing products

Competitive advantage

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

Value proposition

The full positioning of a brand-- the full mix of benefits on which it is differentiated and positioned

Positioning statement

A statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)