Marketing Chapter 9

Generation X

The group of people born between 1966-1981, who are now between ages 25 and 40

4 Criteria for Effective Segmentation

(1) Segment must present measurable purchasing power and size, (2) Marketers can find a way to promote effectively and serve the market, (3) Marketers must identify segments that are large enough to give sufficient profit, (4) The firm must aim for segments that match its marketing capabilities

Psychographic Segmentation

(One of the four methods of segmentation) - Division of a population into groups that have similar psychological characteristics, attitudes, values, and lifestyles

Product Related Segmentation

(One of the four methods of segmentation) - Division of a population into homogeneous groups based on their relationships to the product

Geographic Segmentation

(One of the four methods of segmentation) - Division of an overall market into homogeneous groups based on their location

Demographic Segmentation

(One of the four methods of segmentation) - Division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, etc., also called socioeconomic segmentation

Concentrated Marketing

(One of the four strategies for reaching target markets) - Focusing marketing efforts on satisfying a single market segment also called niche marketing

Undifferentiated Marketing

(One of the four strategies for reaching target markets) - Strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing

Differentiated Marketing

(One of the four strategies for reaching target markets) - Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments

Micromarketing

(One of the four strategies for reaching target markets) - Targeting potential customer at very narrow, basic levels, such as by postal, specific occupation, or lifestyle, possibly even individuals themselves

Positioning Map

A tool that helps marketers place products in a market by graphically illustrating consumers perception of competing products within an industry

Video Game Generation

Another name for Generation Y, The Millennial Generation, Generation Next, and the Echo Boomers

Repositioning

Changing the position of a product within the minds of prospective buyers relative to the positions of competing products

Market Segmentation Step 1

Develop a relevant profile for each segment

Market Segmentation

Division of the total market into smaller, relatively homogeneous groups

Market Segmentation Step 2

Forecast market potential

Market Segmentation Step 3

Forecast market share

Competitors Strategies

Fourth of the basic determinants of marketing strategy

80/20 Principle

Generally accepted rule that 80 percent of a products revenues come form 20 percent of its total customers

Business Products

Goods and services purchased for use either directly or indirectly in the production of other goods

Census Metropolitan Area

Government classification of a geographic area surrounding an urban core with a population of at least 100,000

Census Agglomeration

Government classification of a geographic area with a population over 10,000

Target Market

Group of people whom a firm decides to direct its marketing efforts and ultimately its goods and services to

Market

Group of people with sufficient purchasing power, authority, and willingness to buy

AIO Statements

Items on lifestyle surveys that describe various activities, interests, and opinions of respondents

Company Resources

One of the basic determinants of marketing strategy

Baby Boomers

People born between the years of 1947 and 1965

Positioning

Placing a product at a certain point or location within a market in the minds of prospective buyers

Family Life Cycle

Process of family formation and dissolution

Consumer Products

Products bought by ultimate consumers for personal use

Core Region

Region from which most major brand get 40 to 80 percent of their sales

Product Homogeneity

Second of the basic determinants of marketing strategy

Vals Framework

Segmentation system that divides consumers into eight psychographic categories

Third form of Product Related Segmentation

Segmenting according to consumers brand loyalty towards a product

First Form of Product Related Segmentation

Segmenting based on the benefits that people seek,

Second form of Product Related Segmentation

Segmenting based on usage rates for a product

Market Segmentation Step 4

Select specific market segments

Cohort Effect

Tendency of members of a generation to be influenced and bound together by events occurring during their key formative years, roughly 17-22 years of age

Stage in the Product Life Cycle

Third of the basic determinants of marketing strategy