Marketing Chapter 7

PRIZM NE

Classifies every American household into 66 unique segments organized into 14 different social groups

Psychographic segmentation

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

Behavioral segmentation

Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Occasions, benefits sought, user status, usage rate, loyalty status)

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, countries, 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

Value proposition

Full mix of benefits upon which a brand is positioned

Segmenting Consumer Markets

Geographic, Demographic, Psychographic, Behavioral

Choosing differentiation and positioning strategy

Identifying a set of possible competitive advantages to build a position by providing superior value from: Product, service, channel, people, image differentiation

Individual marketing

Involves tailoring products and marketing programs to the needs and preferences of individual customers. Also known as one-to-one marketing, mass customization

To be useful, market segments must be

Measurable, Accessible, Substantial, Differentiable, Actionable

Micromarketing

Practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations (Local marketing, Individual marketing)

Age and life-cycle stage segmentation

Process of offering different products or using different marketing approaches for different age and life-cycle goups

Market segmentation

Requires diving a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Concentrated marketing

Targets a large share of a smaller segment. (Knowledge of the market, serves a niche well, more effective and efficient)

Differentiated marketing

Targets several different market segments and designs separate offers for each. (Goal is to achieve higher sales and stronger position. More expensive than undifferentiated marketing)

Undifferentiated marketing

Targets the whole market with one offer. (Mass marketing, focuses on common needs rather than what's different)

Multiple segmentation

Used to identify smaller, better-defined target groups

Competitive advantage

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