Marketing Unit 5

Positioning

The process of determining the desired position in the market and developing strategies to achieve it.

Consumer Segmentation

Dividing a market into smaller segments based on distinct needs, characteristics, or behaviors.

Geographic Segmentation

Dividing the market based on geographical units such as nations, regions, states, etc.

Demographic Segmentation

Dividing the market based on variables like age, gender, income, occupation, etc.

Psychographic Segmentation

Dividing the market based on social class, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing the market based on consumer knowledge, attitudes, product usage, or responses.

Multiple Segmentation

Identifying smaller, well-defined target groups within a market.

Experian's Mosaic USA

A system that classifies U.S. households into lifestyle segments and levels of affluence.

Business Segmentation

Using variables like customer operating characteristics, purchasing approaches, situational factors, and personal characteristics to segment business markets.

International Segmentation

Forming segments of consumers with similar needs and behaviors across different countries.

Requirements for Effective Segmentation

Measurable, accessible, substantial, differentiable, and actionable.

Evaluating Market Segments

Considering segment size, growth, and structural attractiveness.

Target Market

A set of buyers with common needs or characteristics that a company decides to serve.

Undifferentiated Marketing

Targeting the whole market with one offer.

Differentiated Marketing

Targeting multiple market segments with separate offers.

Concentrated Marketing

Targeting a large share of a smaller market.

Micromarketing

Tailoring products and marketing programs to specific individuals and locations.

Product Position

How consumers define a product based on important attributes.

Positioning Maps

Visual representations of consumer perceptions of brands on important buying dimensions.

Competitive Advantage

An advantage over competitors gained by offering greater value.

Value Proposition

The full mix of benefits upon which a brand is positioned.

Positioning Statement

A summary of company or brand positioning, stating the target segment, need, concept, and point of difference.

segmentation

Divides the total market into smaller segments

positioning

positioning the market offering in the minds of target customers.

Panera catering to healthy eating (example)

Lifestyle segmentation

age and lifestyle segmentation

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

Gender segmentation

divides a market into different segments based on gender

income segmentation

divides a market into different income segments.

order of marketing from broadest to most narrow

undifferenced, differenced, concentrated, micromarketing

order of marketing from most narrow to broadest

micromarketing, concentrated, differences, undifferenced