Retail Market Segmentation & Strategies Flashcards

Vocabulary flashcards covering retail market segmentation, types of retail markets, market strategies, market penetration, and growth strategies from Chapter 3.

Donald Norman

Director of The Design Lab who noted that market segmentation is the natural result of vast differences among people.

Market Segmentation

The process by which customers are divided into identifiable groups based on their product or service requirements.

Organized Retail

A large retail chain of shops run with up-to-date technology, accounting transparency, supply chain management, and distribution systems.

Unorganized Retail

A small retail business conducted by an owner or caretaker of the shop with no technological and accounting aids.

Retail Strategy

A plan designed by a retail organization outlining how the business intends to offer its products and services to customers.

Concentration (Niche) Strategy

A strategy in which an organization focuses on going after a large share of only one or very few market segments.

Multi Segment Strategy

A strategy under which an organization focuses its marketing efforts on two or more distinct market segments.

Price Penetration

Setting the price of a product or service lower than that of the competitor's product or service to increase volume.

Aggressive Promotion

Increasing promotion across TV, print media, radio, and e-mails alongside discounts and buying schemes to pull customers.

High Product Distribution

Distributing a product or service up to the level of saturation to enhance market penetration.

SWOT Analysis

An evaluation of Strength, Weakness, Opportunity, and Threat conducted before planning growth strategies.

Igor Ansoff

An American planning expert who developed a strategic planning tool that presents four alternative growth strategies based on products and markets.

Ansoff's Matrix

A strategic planning tool presenting four growth strategies along two dimensions: products and markets.

Market Penetration (Growth Strategy)

An Ansoff Matrix growth strategy where a company focuses on selling existing products or services in existing markets for a higher market share.

Market Development

An Ansoff Matrix growth strategy where a company focuses on selling existing products or services to new markets or market segments.

Product Development

An Ansoff Matrix growth strategy where a company works on innovations in existing products or developing new products for the existing market.

Diversification

An Ansoff Matrix growth strategy where a company works on developing new products or services for new markets.