Marketing Segmentation and Research Concepts

Flashcards based on lecture notes detailing market segmentation (consumer & B2B), international segmentation, VALS framework, Hofstede dimensions, ADAMS criteria, STP model, positioning strategies, marketing ethics, and Big Data concepts.

Marketing Segmentation

The process of dividing a target market into smaller, precisely defined groups with common needs who respond similarly to marketing actions.

Geographic Segmentation

Consumer market segmentation based on 'Where' consumers are located, considering variables like population density or population type.

Demographic Segmentation

Consumer market segmentation based on 'Who' consumers are, using variables like age, income, education, occupation, or life cycle stage.

Behavioral Segmentation

Consumer market segmentation based on 'How' consumers act, focusing on usage patterns or interactions with a product.

Psychographic Segmentation

Consumer market segmentation based on 'Why' consumers act, focusing on values, attitudes, lifestyles, or personality traits.

AIO

An acronym in psychographic segmentation standing for Activities, Interests, and Opinions.

VALS Framework

A framework that segments consumers into eight types based on values, attitudes, and lifestyles.

Innovators (VALS)

High-resource consumers in the VALS framework characterized by a motivation to achieve the 'finer things' in life.

Thinkers (VALS)

High-resource consumers in the VALS framework whose primary motivation is knowledge.

Believers (VALS)

VALS consumer group with fewer resources than Thinkers that seeks affirmation from peers.

Achievers (VALS)

High-resource consumers in the VALS framework who differ from Strivers by possessing higher levels of resources despite having similar values.

Experiencers (VALS)

High-resource consumer type in the VALS framework that seeks to experience 'being different'.

Makers (VALS)

VALS consumer type that seeks self-expression but focuses on building a better family due to a lack of financial resources.

Survivors (VALS)

VALS consumer type with the fewest resources and who is least likely to adopt innovative products.

Firmographics

B2B segmentation based on organizational characteristics like industry, size, and location.

Technographic Segmentation

B2B segmentation method that organizes prospects based on their hardware and software technology ownership and usage.

Needs-Based Segmentation

B2B segmentation that clusters groups based on the features they look for in a product, focusing resources on customers who require the product and can purchase it.

Value-Based Segmentation

B2B segmentation (also called profitability segmentation) that groups customers by their transactional worth.

Power Distance Index (PDI)

Geert Hofstede's cultural dimension measuring the degree of power inequality within a society.

Individualism versus Collectivism (IDV)

Hofstede dimension defined as the emphasis placed on individual needs and goals versus those of the collective group.

Uncertainty Avoidance (UAI)

Hofstede dimension assessing the degree to which a society avoids risks and ambiguity.

Masculinity/Femininity (MAS)

Hofstede dimension defining how gender-specific roles are defined and valued in a society.

ADAMS Criteria

An acronym representing five criteria for effective market segmentation: Accessible, Differentiable, Actionable, Measurable, and Substantial.

Accessible (ADAMS Criterion)

The ability to reach consumers in the segment at an affordable cost.

Differentiable (ADAMS Criterion)

The criterion requiring that a segment be internally homogeneous (similar preferences) and externally heterogeneous (distinctly different from one another).

Actionable (ADAMS Criterion)

The possibility and profitability of delivering the marketing mix to the target segment.

Measurable (ADAMS Criterion)

The criterion asking if a marketer can accurately estimate the size, sales value, or customer count of a market segment.

Substantial (ADAMS Criterion)

The requirement that a segment must be large enough to justify the company's time and resources.

Buyer Persona

A made-up persona created to represent a specific customer segment for marketing planning and to humanize target customers.

STP Model

A framework standing for Segmenting, Targeting, and Positioning.

Targeting

Step 2 of the STP model, which involves choosing and selecting which market segments are the most valuable to focus on.

Positioning

The act of placing a product or service in the minds of the target audience through a specific marketing message by manipulating existing perceptions.

Undifferentiated Marketing

A marketing strategy involving creating one message for an entire market, also known as mass marketing.

Concentrated Marketing

Also known as niche marketing; a strategy focusing on one small segment, unlike undifferentiated marketing which targets the whole market.

Head-to-head Positioning

A positioning approach defined as positioning a product to compete directly with rival products.

Differentiation Positioning

A positioning approach defined as highlighting a product's unique qualities to distinguish it from competition.

Positioning Statement

A statement describing the product, service, brand, and target market to clarify consumer expectations and guide marketing teams.

Perceptual Map

A visual description and tool showing where a product or service stands in comparison to competitors on a two-dimensional graph based on determinant attributes.

Determinant Attributes

The specific attributes a customer uses to make a purchase decision.

Big Data

A vast and rapidly growing set of records often described by volume, velocity, and variety.

Velocity (Big Data)

One of the three Vs of Big Data referring to the increasing speed at which new data is generated and contributed.

Variety (Big Data)

One of the three Vs of Big Data referring to the diversity of data types and sources contributed by unique users.

Aided Awareness

A marketing research measurement method providing a list of brands or companies for the respondent to choose from.

Anonymous Data

Data in marketing research where the identity of the respondent is not recorded or known.

Breach of Confidentiality

A situation where a researcher fails to protect information they promised to keep private.

SWOT Analysis

The identification of internal strengths and weaknesses alongside external opportunities and threats.

Target Market

A group of people with shared characteristics identified as potential customers for a company's products.