Marketing305: Ch. 9 "Market Segmentation, Targeting, and Positioning"

McGraw Hill

market segmentation

involves aggregating prospective buyers into groups, or segments, that have common needs and will respond similarly to a marketing action

product differentiation

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products

market product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

product positioning

the place a product occupies in consumers’ minds based on important attributes relative to competitive products

product repositioning

involves changing the place a product occupies in a consumer’s mind relative to competitive products

perceptual map

a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand

usage rate

the quantity consumed or patronage (store visits) during a specific periods. AKA frequency marketing

80/20 rule

a concept that suggests that 80 percent of a firm’s sales are obtained from 20 percent of its customers

customer lifetime value (CLV)

represents the financial worth of a customer to a company over the course of their relationship

personas

character descriptions of a brand’s typical customers