Chapter 7: Segmentation, Target Marketing and Positioning

Inclusivity Mindset Marketing

An overarching approach to the marketer’s role of creating, promoting, and distributing products and services of value to customers of all types who can gain value from the offering.

Market Fragmentation

Peoples diverse interests and backgrounds naturally divide them into numerous groups with distinct needs and wants.

Target Marketing Strategy

Dividing the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments.

Segmentation

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

Oversegmentation

When consumers may become confused If an organization offers too many choices.

Segmentation Variables

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

Generational Variables

Marketing to members of a generation, who tend to share the some outlook, values, and priorities.

Digital Natives

Those who spend a big chunk of their time online, so they expect brands to engage them in two-way digital conversations.

Gender Identity

The personal sense of one’s own gender.

Androgyny

The possession of both masculine and feminine traits.

Gender-Bending Products

Traditionally sex-types items adapted to the opposite gender.

Me Too Movement

A movement against sexual harassment and sexual abuse of women has gained substantial momentum, and today it is a staple priority for all socially responsible firms.

Buying Power

A concept in segmentation that can help marketers to determine how to better match different products and versions of products to different consumer groups based on an understanding of what discretionary and nondiscretionary allocations of funds they are able to make.

Bicultural

Belonging to, representing, or understanding two different cultures.

Cultural Diversity

A management practice that actively seeks to include people of different sexes, races, ethnic groups, and religion in an organization’s employees, customers, suppliers, and distribution channel partners.

Geographic Segmentation

An approach in which marketers tailor their offerings to specific geographic areas because people’s preference often vary depending on where they live.

Geographic Information System (GIS)

A system that combines a geographic map with digitally stored data about the consumers in a particular geographic area.

Geodemography

A segmentation technique that combines geography with demographics.

PRIZM

A large database that classifies the US population into 68 segments based on various socioeconomic data (income, age, race, occupation, education, and lifestyle attributes) that profile who and what you are.

Geotargeting

Marketing to a set of specific users based on their current real-time location.

Micromarketing

§  The ability to identify and target small geographic segments that sometimes amount to just one or a few individuals.

Psychographics

Segments consumers in terms of psychological and behavioral similarities, such as shared activities, interests, and opinions.

VALS

A psychographic segmentation system that divides US adults into eight groups according to what drives them psychologically as well as by their economic resources.

Gamer Segment

Group that grew up playing games as second nature for primary recreation, and as they have entered college and the workforce, they continue to carry many gaming sensibilities with them.

Behavioral Segmentation

Slices consumer segments on the basis of how they act toward, feel about, or use a product.

80/20 Rule

20 percent of purchasers account for 80 percent of the products sales.

Customer Loyalty

A customers low likelihood of switching to a competitors offering, especially because of being highly engaged and connected with their current brand.

Customer Stickiness

Highly cultivated customers who are likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.

Experiential Loyalty

Customer loyalty that results not just in increased purchases but also in an enhanced broader experience for the customer.

Customers have a very high customer lifetime value

Usage Rate

Reflects the quantity purchased or frequency of use among consumers of a particular product or service.

Long Tail

A new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items.

Usage Occasions

When consumers use the product the most.

Organizational Demographics

Organization-specific dimensions that marketers use to describe, classify, and organize different organizations for the purpose of segmenting business-to-business markets.

Segment of One

Tracking the activity and preferences of a single potential customer and then tailoring products or ads for that individual according to their behaviors.

Targeting

Marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.

Target Market

The segment(s) on which an organization focuses its marketing plan and toward which it directs its marketing efforts.

Segment Profile

A description of a typical customer in a segment.

Demographics, location, lifestyle information, how frequently the customer buys the product.

Personas

Fictional characters created by marketers that represent different key potential user types for an offering.

Undifferentiated Targeting Strategy

Appealing to a broad spectrum of people.

Differentiated Taegeting Strategy

Develops one or more products for each of several customer groups with different product needs.

Concentrated Targeting Strategy

When a firm offers one or more products to a single segment.

Customized Marketing Strategy

An approach that tailors specific products and the messages about them to individual customers.

Mass Customization

When a manufacturer modifies a basic good or service to meet an individuals specific needs.

Positioning

Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.

Direct Competitors

Offerings are similar to mine

Indirect Competitors

Offerings are different from mine but potentially could provide the same benefits and satisfy the same customer needs as your offerings do.

Positioning Statement

An expression of a product’s positioning that is internally developed and maintained in order to support the development of marketing communication that articulates the specific value offered by a product.

Repositioning

Redoing a product’s position to respond to marketplace changes

Retro Brands

A once popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia.

Perceptual Map

A vivid way to construct a picture of where products or brands are located in consumers minds.

Neglected Segment

An unserved or underserved market segment for which opportunity may exist for a new product entry.