MKTG102: Lecture 5 - STP (Segmentation, Targeting, Positioning)

Vocabulary flashcards from MKTG102 lecture notes focusing on segmentation, targeting, and positioning.

Market Segmentation

The process of dividing a market into smaller segments with distinct needs, characteristics, or behaviors.

Targeting

The process of identifying customers for whom the company will optimize its offerings.

Differentiation

Creating superior customer value by distinguishing the market offering.

Positioning

Establishing a market offering in the minds of target customers.

Mass Marketing

A strategy where a firm ignores segment differences and targets the whole market with one offer.

Target Compatibility

A company's ability to outperform competitors in meeting the needs of its target customers.

Core Competency

A source of competitive advantage that significantly contributes to perceived customer benefits.

Tactical Targeting

Identifying ways to reach strategically important customers.

Demographic Segmentation

Dividing the market based on age, gender, income, race, and culture.

Psychographic Segmentation

Grouping buyers based on psychological traits, lifestyle, or values.

Behavioral Segmentation

Dividing buyers based on their actions, such as usage rate and loyalty status.

Geographic Segmentation

Dividing the market into geographic units such as nations, states, or cities.

Essential Factors in Market Segmentation

Criteria that include Accessible, Differentiable, Actionable, Measurable, and Substantial.