BUS KEY TERMS 4.2 Key Concepts in Marketing and Market Segmentation

Bargain products

Goods or services that are those perceived by customers to be of high quality but sold at a low price.

Consumer profiles

The demographic and psychographic characteristics of consumers in different market segments.

Cowboy products

Goods or services that are perceived by customers to be of low quality but high price.

Demographic segmentation

The process of splitting consumers according to statistical characteristics of the population, such as age, gender, family size, religion, and ethnicity.

Differentiation

The process of distinguishing an organization's products from those of other firms in the same industry.

Economy brands

Goods or services that are perceived by customers to be of low quality and sold at a low price.

Geographic segmentation

The marketing process that involves characterising consumers according to their different geographical locations.

Market

A market is the collective term for the buyers and sellers of a particular good or service.

Market segment

A distinct group of customers with similar characteristics, tastes, and preferences.

Market segmentation

The process of dividing a market for a product into smaller or distinct groups of customers in an effort to meet their specific desired needs and wants.

Marketing mix

The key elements of a marketing strategy to ensure its success in meeting the needs and wants of the organization's customers and the firm's marketing objectives.

Marketing objectives

These are the goals or targets that help to give marketing teams (or marketing departments) a sense of purpose and direction.

Marketing plan

A document that shows the marketing objectives and marketing strategy of a particular business.

Marketing planning

The structured process of formulating marketing objectives and appropriate marketing strategies to achieve these goals.

Marketing strategies

The different long-term actions used by an organization to achieve its marketing goals.

Mass markets

A marketing approach that focuses on supplying to wide-ranging groups of customers in a market, without having split them into separate market segments, such as the markets for bottled water or breakfast cereal.

Niche markets

Marketing approach that focuses on supplying highly specialised products to cater for a small and select target market.

Objective

Refers to a target or goal a business organization strives to achieve.

Premium products

Goods or services that are perceived by customers to be of high quality and high price.

Product differentiation

Refers to the process by which firms attempt to make their goods and services different from those provided by other firms in the market in order to increase their own sales revenue.

Product position map

Also known as a perception map, this is a graphical illustration of customer perceptions of a business, its products, and/or brands in comparison to other firms in the industry.

Psychographic segmentation

Segmentation that involves characterising consumers according to people's lifestyle choices and personal values.

Socio-economic segmentation

The process of splitting the market according to consumer or household income levels. This is often linked to their type of profession and/or their level of educational attainment.

Target market

The group of customers that an organization focuses on selling its products to.

Targeting

Targeting is the marketing practice of creating and using an appropriate marketing mix and marketing strategies to cater for different market segments.

Unique selling point (USP)

An exclusive feature or aspect of a business, its products or brands that makes it distinct from others in the same industry.