Market Segmentation, Targeting & Positioning, Developing New Products & Services

This set of flashcards covers key concepts and terms related to market segmentation, targeting, positioning, and new product development, useful for exam preparation.

Market Segmentation

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

Targeting

The process of selecting specific segments to focus marketing efforts on.

Positioning

Creating a mental image in the consumer's mind about a brand versus its competitors.

Behavioral Segmentation

Grouping customers based on observable actions or attitudes, such as purchase habits.

Psychographic Segmentation

Classification of consumers based on lifestyle, personality traits, and values.

4 Types of Market Segmentation

Geographic, Demographic, Psychographic, and Behavioral.

Mass Customization

Creating products tailored to individual customer's preferences on a large scale.

Product Differentiation

Making products appear different through features, price, or branding.

Market Product Grid

A tool to relate market segments to specific products or marketing actions.

Customer Lifetime Value (CLV)

The total profit a business expects to earn from a customer over their entire relationship.

80/20 Rule

20% of customers drive 80% of sales.

Product Line Extension

Adding more items related to the existing product line.

Closed Innovation

R&D processes limited to internal resources without collaboration.

Open Innovation

Collaborating with external sources for research and development.

Three Levels of Newness

Continuous, Dynamically Continuous, and Discontinuous innovations.

Test Marketing

The stage of product development where products are tested in real market conditions.

Commercialization

The process of launching a product into the market.

Product Life Cycle

The stages a product passes through from introduction to decline.

Brand Equity

The added value a brand name provides to a product, influencing customer perception.

Market Modification

Increasing sales by finding new users, new uses, or new segments for existing products.