Market segmentation

Mass marketing

A marketing strategy that appeals to a broad audience

Target marketing

A strategy that tailors marketing efforts to a specific group consumers

Market segmentation

A breakdown of the total market into smaller, more specific groups based on characteristics such as demographics and behaviors

Customer persona

A representation of an ideal customer based on research and data, including their demographics, interests, and buying habits

Law of diffusion Of innovators

A marketing concept that explains how innovations spread through different adopter categories over time

Innovators

The first group of consumers to try new products after seeing early adopters’ success and social proof

Early adopters

Consumers who adopt innovations just before the average person, relying on reviews and recommendation

early majority

Consumers who adopt new products after seeing early adopters’ success and social proof

Late majority

The stage in the adoption curve that includes consumers who are highly skeptical and only adopt products after the majority of others have.

Market share

The portion of the total market that a company currently serves or sells to

TAM

The total demand for a product or service in a given market

SAM

The subset of TAM that a company realistically targets with its products or services

Degrees of competition

The varying levels of competition in a market, including perfect competition, monopolistic competition oligopoly, and monopoly

What is the primary goal of market segmentation?

To avoid wasted money on wasted audiences

What is the primary goal of mass marketing

To sell as many units as possible by targeting a wide audience

What is a monopoly?

One company controls market

What is an oligopoly?

A handful of large companie

What is monopolistic competition?

Differentiation in products but many compnies

What is perfect competition?

All products are identical and there are many companies

What is the formula for market share?

Your revenue/total market revenue