Market Segmentation, Targeting, and Positioning

Flashcards covering key concepts from the lecture on Market Segmentation, Targeting, Positioning, New Products, and Services.

Market Segmentation

Dividing a market into groups (segments) with similar needs and behaviors.

Targeting

Selecting specific market segments to focus marketing efforts on.

Positioning

Creating a mental image in the consumer's mind about a brand compared to competitors.

Segmentation Bases

Criteria for dividing a market into segments, including Geographic, Demographic, Psychographic, and Behavioral.

Behavioral Segmentation

Grouping customers based on their actual purchasing behavior.

Customer Lifetime Value (CLV)

A financial metric that estimates the total worth of a customer over the entire relationship with a business.

80/20 Rule

The principle that 20% of customers generate 80% of sales.

Product Differentiation

Making products appear different from competitors through features or branding.

Repositioning

Changing customers' perceptions of a brand.

Segments of One

A market strategy where each customer is treated as a separate segment, often involving mass customization.

Mass Customization

Tailoring products to individual customer preferences on a large scale.

Market Product Grid

A tool used to relate market segments to product offerings to identify opportunities.

Product Line Extension

Adding new items to an existing product line.

Brand Extension

Introducing a new product in a different category under an existing brand name.

Continuous Innovation

Minor improvements to existing products that require no new consumer behavior.

Dynamically Continuous Innovation

Innovations requiring minor changes in consumer behavior.

Discontinuous Innovation

Entirely new products that require consumers to learn new behaviors.

Groupthink

A phenomenon where team members conform to a consensus opinion, leading to poor decision-making.

Open Innovation

Collaboration with external sources to foster new ideas and innovations.

Test Marketing

The process of introducing a product in a limited market to gauge consumer response and gather data.

Product Life Cycle

The stages a new product goes through from introduction to decline.

Commercialization

The final step in the new-product process, introducing a product to the full market.

Market Modification

Strategies to increase sales by finding new users, uses, or segments for an existing product.

Brand Equity

The added value a brand gives to a product based on customer perception and loyalty.