Marketing chapter 7

target market

consists of a set of buyers who share common needs or characteristics that the company decides to serve

psychographic segmentation

divides buyers into different groups based on social class, lifestyle, or personality traits.

behavioral segmentation

divides buyers into groups baed on their knowledge, attitudes, uses, or responses to a product.

inter-market segmentation

divides consumers into groups with similar needs and buying behaviors even though they are located in different countries.

gender segmentation

divides the market based on sex (male or female)

income segmentation

divides the market into affluent, middle-income or low-income consumers

geographic segmentation

divides the market into different geographical units such as nations, regions, states, counties, or cities

demographic segmentation

divides the market into groups based on variables such as age, gender, family, size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

PRIM NE classifies what?

every american household into 66 unique segments organized into 14 different social groups.

local marketing

involves tailoring brands and promotion to the needs and wants of local customer groups

individual marketing (one-to-one marketing OR mass customization)

involves tailoring products and marketing programs to the needs and preferences of individual customers.

competitive advantage

is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

value proposition

is the full mix of benefits upon which a brand is positioned

market segmentation

requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

concentration marketing

targets a small share of large market

differentiated marketing

targets several different market segments and designs separate offers for each. - goal: to achieve higher sales and stronger positions

undifferentiated marketing

targets the whole market with one offer: - mass marketing - focuses on common needs rather than what's different.

micromarketing

the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

age and life cycle stage segmentation

the process of offering different products or using different market approaches for different age and life-cycle groups.

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 - perceptions -impressions - feelings

true or false: choosing the position is often easier than implementing the position.

true

multiple segmentation

used to identify smaller, better-defined target groups

Requirements for effective segmentation

- measurable - accessible - substantial - differentiable - actionable

True or false: Differentiated marketing is cheaper than undifferentiated marketing

False; its more expensive