Marketing - Chapter 6

Market segmentation

Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Market targeting (targeting)

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Differentiation

Actually differentiating the market offering to create superior customer value.

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Geographic segmentation

Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.

Demographic segmentation

Dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

Age and life-cycle segmentation

Dividing a market into different age and life-cycle groups.

Gender segmentation

Dividing a market into different segments based on gender.

Income segmentation

Dividing a market into different income segments.

Psychographic segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.

Occasion segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Benefit segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product.

Intermarket segmentation

Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

Target market

A set of buyers sharing common needs or characteristics that the company decides to serve.

Undifferentiated (mass) marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Differentiated (segmented) marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentrated (niche) marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Micromarketing

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing.

Local marketing

Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores.

Individual marketing

Tailoring products and marketing programs to the needs and preferences of individual customers - also labeled "one-to-one marketing," "customized marketing," and "markets-of-one marketing."

Product position

The way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products.

Competitive advantage

An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.

Value proposition

The full positioning of a brand - the full mix of benefits upon which it is positioned.

Positioning statement

A statement that summarizes company or brand positioning - it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).