chapter seven

lifestyle segmentation

Segmentation taht divides people into groups based on their opnions and the interests and activities they pursue

behavorial segmentation

Segmentation that divides consumers according to how they behave with or act toward products

demographic segmentation

Segmentation that divides markets by characteristics such as age, gender, income, education, and family size

geographics segmentation

Segmentation that divides markets into groups such as nations, regions, states, and neighborhoods

global segmentation

Segmentation that is used when a firm can identify a group of consumers with common needs and wants that spans the entire globe

unique segmentation

Segmentation that is used when the similarity in needs and wants exists only within one country

regional segmentation

Segmentation that is used when the similarity in needs and wants only extends across the region or several countries

market segments

The relatively homogenous group of consumers that result from the segmentation process

psychographic segmentation

The science of using psychology and demographics to segment consumers

perceptual map

A competitive analyisis tool that creates a visual picture of where products are located in consumer's minds

positioning statement

A succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product

undifferentiated targeting

A targeting strategy that approaches the marketplace as one large segment

niche marketing

A targeting strategy that involves pursuing a large share of a small market segment

differentiated targeting

A targeting strategy that simultaneously pursues several different market segments, usually with a different strategy for each

80/20 rule

A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand

targeting

The act of evaluating each market segment or segments present the most attractive opportunity to maximize sales

repositioning

The act of reestablishing a product's position to respond to changes in the marketplace

positioning

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market

target market

The group of customers toward which an organization has decided to direct its marketing efforts

market segmentation

The process of dividing a larger market into smaller groups, or market segments, based on meaningfully shared characteristics