Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
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 product 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 neighborhoods.
Demographic segmentation
Dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Age and life-cycle segmentation
Dividing a market into different age and life-cycle groups.
Gender segmentation
Dividing a market into different groups based on gender.
Income segmentation
Dividing a market into different income groups.
Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle, or personally characteristics.
Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product.
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
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
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups�includes local marketing and individual marketing.
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups -- cities, neighborhoods and even specific stores.
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.
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.
Positioning statement
A statement that summarizes company or brand positioning -- it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).
Defining Market Segmentation
Common needs; respond similarly to marketing action
Ways to segment market
geographic; demographic; psychographic; behavioral
Business Market Segmentation
Segmenting business into groups of customers; Revenue (size); Type (need); geography; demographic; occasion (benefit sought)
Estimating Market Demand
Primary Demand (product category); Selective Demand (specific product); Total Market Demand (Q = no.of.buyers X quant/buyer/year X price.of.product); Chain Ratio Method
Targeting
BY: size of segment; growth potential; competitive position; cost to reach; compatibility with objectives
Micro Marketing
Technology (Promotion, Information Age); People (Recognition of Ethnic Groups, More demanding consumers); Mass Media (TV Networks, TV choices); Retailers (More Information and Power)
Product positioning
v. competition; what is unique about the product
Perceptual Maps
comparing products (meet similar need) on a graph with 2 axis. Axis measure specific, non-correlating attributes