Segmentation, Targeting, and Competitor Analysis

Flashcards covering key vocabulary and concepts from Chapter 9 on Segmentation, Targeting, and Competitor Analysis.

Segmentation

Dividing the market into groups based on shared characteristics.

Demographics

Segmentation based on age, life stage, gender, and other statistical data.

Geographic Segmentation

Dividing the market based on location, such as city, region, or zip code.

Psychographic Segmentation

Segmentation based on lifestyle, values, and attitudes.

Product Benefit

Focus on the most important attribute of a product as a basis for segmentation.

Usage Rate

Segmentation based on how often and how much customers use a product.

Identifiability

The ability to clearly define which customers belong to which market segment.

Accessibility

The capacity to effectively reach distinct market segments with marketing efforts.

Segment Profit Formula

Segment Profit = (size x price WTP x # of units) - Cost of Reach.

Mass Market Targeting

A strategy targeting the entire market with a single marketing mix.

Niche Targeting

Focusing on a specific market segment with tailored marketing strategies.

Porter's Five Forces

Potential entrants, suppliers, buyers, existing competitors, indirect competitors

Direct Competitors

Companies that offer similar products and target similar customers.

Indirect Competitors

Companies that target the same customer with different products.

Sustainable Competitive Advantage

Unique strengths that allow a firm to maintain an edge over its competitors.

Pioneer's Advantage

The benefit a company gains by being the first to enter a new market.

Product Lifecycle

The progression of a product through introduction, growth, maturity, and decline stages.

Market Attractiveness-Business Strength Matrix

A tool for assessing the attractiveness of market segments combined with business capabilities.

Points of Difference

Attributes that distinguish a brand from its competitors.

Points of Parity

Attributes that a brand must match or exceed to be considered as valid as competitors.

Format Wars

Competition among businesses to dominate a specific service or product standard.