Market Segmentation
dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Market Targeting
evaluating each market segment's attractiveness and selecting one or more segments to enter
Differentiation
differentiating the market offering to create superior customer value
Positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Geographic Segmentation
dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
Demographic Segmentation
dividing the market into segments based on variables such as life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Age and life-cycle segmentation
dividing a market into different age and life-cycle groups
Gender Segmentation
dividing a market into different segments based on gender
Income Segmentation
dividing a market into different income segments
Psychographic Segmentation
dividing a market into different segments based on social class, lifestyle, or personality characteristics
Behavioral Segmentation
dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
Occasion segmentation
(type of behavioral segmentation) dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Benefit segmentation
(type of behavioral segmentation) dividing the market into segments according to the different benefits that consumers seek from the product
User Status
markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.
Usage Rate
markets can be segmented into light, medium, and heavy product users
Loyalty Status
market can be segmented by consumers who are loyal to brands (tide), stores (Target) , and companies (Apple)
Intermarket (cross-market) segmentation
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
Requirements for Effective Segmentation
1. Measurable
2. Accessible
3. Substantial
4. Differentiable
5. Actionable
Target Market
a set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated (mass) marketing
a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Differentiated (segmented) marketing
a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (niche) marketing
market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Micromarketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments. includes local marketing and individual marketing
Local marketing
tailoring brands and marketing to the needs and wants of local customer segments-cities, neighborhoods, and even specific stores
Individual marketing
tailoring products and marketing programs to the needs and preferences of individual customers
Product position
the way a product is defined by consumers on important attributes -the place the product occupies in consumers' minds relative to competing products
Competitive advantage
an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits to justify higher prices
Product differentiation
competitive adv gained by differentiating brands on features, performance, or style/design
Services differentiation
competitive adv gained by differentiating through speedy, convenient, or careful delivery
Channel differentiaion
competitive adv gained through the design of channel's coverage, expertise, and performance
People differentiation
competitive adv gained through hiring and training better people than competitors
Differences to promote
important, distinctive, superior, communicable, preemptive, affordable, profitable
Value proposition
the full positioning of a brand-the full mix of benefits on which it is positioned (more for more, more for the same, more for less, the same for less, less for less)
Positioning statement
a statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
Designing customer-driven marketing strategy steps
1. segmentation
2. targeting
3. differentiating
4. positioning
Unique selling proposition (USP)
aggressively promote only one benefit to the target market