Chapter 4: Focusing Marketing Strategy with Segmentation and Positioning

Vocabulary practice flashcards covering key definitions and concepts from Chapter 4 on market segmentation, target marketing approaches, and positioning.

Market

A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

Generic Market

A market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs, defined by customer needs, customer types, and geographic area without specifying product type.

Product-Market

A market with very similar needs and sellers offering various close substitute ways of satisfying those needs, defined by customer needs, customer types, geographic area, and product type.

Market Segmentation

A two-step process that involves naming broad product-markets and segmenting these markets in order to select target markets and develop appropriate marketing mixes.

Segmenting

An aggregating process that clusters people with similar needs into a market segment.

Market Segment

A relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

Single Target Market Approach

A target market approach where a segmenter picks one homogeneous segment as the firm's target market and develops a specific marketing mix for it.

Multiple Target Market Approach

A target market approach where a firm segments the market, chooses two or more submarkets, and develops a different marketing mix for each segment.

Combined Target Market Approach

A target market approach where a combiner merges two or more submarkets into one larger target market as a basis for one strategy with a single marketing mix.

Combiners

Marketers who try to satisfy two or more submarkets "pretty well" by using a single marketing mix across the combined target market.

Segmenters

Marketers who aim at specific target markets by developing a separate marketing mix for each distinct segment to satisfy customer needs "very well."

Clustering Techniques

Computer-aided methods used in segmenting to find similar patterns or groups of customers in a data set.

Customer Relationship Management (CRM)

A system where a seller fine-tunes marketing efforts using detailed information from a customer database to target individual customers or small submarkets.

Dynamic Behavioral Segmentation

A computer-aided segmenting approach that analyzes real-time customer behavior to deliver customized offers or content.

Perceptual Map

A visual "product space" representation resulting from a positioning study that shows how target customers perceive competing brands along key dimensions.

Positioning Statement

A strategic statement structured as: For (our target market), (our brand) of all (product type) delivers (key benefits or point of differentiation) because (our brand) is (reasons to believe).

Mountain Dew Positioning Statement

For 16-24-year-old males, who embrace excitement, adventure, and fun, Mountain Dew of all carbonated soft drinks, delivers great taste that exhilarates like no other because Mountain Dew is energizing, thirst-quenching, and has a one-of-a-kind citrus flavor.

Segmenting Dimensions for Business Markets

Dimensions used to segment business markets, including geographic, demographic, how customers will use the product, type of customer, type of buying situation, purchasing methods, and kind of relationship.

Ethical Issues in Selecting Segmenting Dimensions

Ethical concerns when selecting target segments, such as exploitation, creating unnecessary wants, doing harm, and international targeting issues.