Chapter 6: Market Segmentation and Positioning

Behavioral segmentation

Segments based on consumer knowledge, attitudes, uses, or response to a product

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments

Demographic segmentation

Marketers divide the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Unique selling proposition

A specific attribute that a company chooses about a brand and touts as "number one" in regards to that attribute

Individual marketing

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

Psychographic segmentation

Divides a market into segments based on social class, lifestyle, or personality characteristics

Occasion segmentation

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

Concentrated marketing

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

Cultural factors

Group markets according to common languages, religions, values and attitudes, customs, and behavioral patterns

Product differentiation

Brands can be differentiated on features, performance, or style and design

Differentiation

Distinguishing a market offering from other offerings in order to create superior customer value

Intermarket segmentation

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

Value proposition

The full mix of benefits on which a brand is positioned

Geographic segmentation

Dividing a market into different units such as nations, regions, counties, cities, or even neighborhoods

Product position

Defined by consumers on important attributes (what do consumers think of this product relative to other competing products?)

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place

Market segmentation is

dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Political and legal factors

Countries can be segmented by _______ such as the type and stability of government, receptivity to foregin companies, monetary regulations, and amount fo bureaucracy

Market targeting is

evaluating each market segment's attractiveness and selecting one or more segments to enter

local marketing

is tailoring brands and marketing to the needs and wants of cities, neighborhoods, and even specific stores.