Market Segmentation
Dividing the market into smaller segments with distinct needs, characteristics or behavior that might require separate marketing strategies or mixes
Market Targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Differentiation
Actually 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 customers.
Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities or neighborhoods.
Demographic segmentation
Dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality.
Age & 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.
Behavior Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
Occasion Segmentation
Dividing the market into segments according to occasions when the buyers get the idea to buy, actually make their purchase or use the purchased item.
Benefit Segmentation
Dividing the market into segments according to the different benefits that consumers seek from the product e.g. maternity clothes
Target Market
A set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated or 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
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. e.g. Whole Foods
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local consumer segments - includes local marketing and individual marketing
Local marketing
Tailoring brands and promotions to the needs and wants of local customer segments -- cities, neighborhoods and even specific stores. e.g. Wal-Mart
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers - also labeled "one to one" marketing "customized" marketing and "markets of one" marketing. e.g. MyM&MS.com
Product Position
The way the 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 through lower prices or by providing more benefits that justify higher prices.
Value Proposition
The full positioning of a brand - the full mix of benefits upon which it is positioned.
Perceptual Positioning Map
A two dimensional map with value or price vs. orientation