Global Marketing: Segmentation, Target Marketing and Positioning

Vocabulary flashcards covering core concepts of market segmentation, target marketing strategies, and product positioning from BUS 124 Global Marketing.

Market Fragmentation

The creation of many consumer groups due to a diversity of distinct needs and wants in modern society.

Target Marketing Strategy

Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and then developing products to meet the needs of those specific segments.

Market Segment

A group of customers who share a similar set of needs and wants.

Segmentation

The process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristics.

Segmentation Variables

Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences.

Geodemography

A segmentation technique that combines geography with demographics.

Generation Z

Demographic segment born after 1994, described as diverse, digital natives who spend money on feel-good products like downloaded music.

Generation Y

Demographic segment (Millennials) born between 1979 and 1994, who are attuned to technology and difficult to reach through traditional marketing efforts.

Generation X

Demographic segment born between 1965 and 1978, characterized by a cynical attitude towards marketing, individual values, and being value-oriented.

Baby Boomers

Demographic segment born between 1946 and 1964, representing a big market approaching retirement with money to spend.

AIOs

Psychographic variables measuring Activities, Interests, and Opinions to understand consumer preferences for goods and services.

VALS Framework

A psychographic segmentation system based on social values, primary motivations (Ideals, Achievement, and Self-Expression), and levels of resources and innovation.

Behavioral Segmentation

Dividing consumers on the basis of how they act toward, feel about, or use a product, including user status, usage rate, occasion, and brand loyalty.

80/20 Rule

A rule of thumb (Pareto principle) stating that 20% of purchasers account for 80% of total product sales.

Targeting

The process of evaluating different market segments and selecting specific customer segments to focus on based on factors like profitability, market size, competition, and business objectives.

Target Market

The group or groups that a company selects to turn into customers as a result of segmentation and targeting.

Undifferentiated Targeting

A marketing strategy (mass marketing) that appeals to a broad spectrum of people who have similar needs, achieving economies of scale through a single marketing mix.

Differentiated Targeting

A strategy of developing specific products and distinct marketing mixes for each chosen market segment where different needs exist.

Concentrated Targeting

A strategy (niche marketing) that focuses all effort on one or a few narrow, specific consumer groups to build strong brand loyalty.

Customized Targeting

A targeting approach that tailors products or services to meet the specific needs of individual customers, common in B2B firms and mass customization.

Positioning

Developing a marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to competitor offerings.

Positioning Strategy

The process of creating and communicating distinctive differences in a product that are noticeable, relevant, and valued by consumers.

Brand Personality

A distinctive image that captures a product's character and benefits, often described by consumers using human personality traits.

Positioning Maps

Graphical depictions (perceptual maps) showing consumer perceptions of competing brands along key purchasing characteristics to identify market opportunities.