Identifying Market Segments and Targets

Concentrated marketing

Focusing on one segment with specialized products

Niche marketing

Focusing on small, specialized market segment

Grassroots marketing

Getting close to customers at local level through sponsorships

Market segment

Group of customers who share similar needs and wants

Needs-based segmentation

Grouping customers based on similar needs and benefits sought

Segmentation process

Identifying needs-based segments, evaluating attractiveness, and positioning

Undifferentiated marketing

Ignoring segment differences and targeting whole market

Flexible market offering

Combining naked solution and discretionary options

VALS segmentation system

Classifying consumers based on motivations and resources

Segment positioning

Creating value proposition and product-price strategy for each segment

Customerization

Empowering consumers to design their own product-service offering

Distinctive benefit

Establishing and communicating unique value of company's market offering

Segment attractiveness

Evaluating segment based on criteria like growth and market access

Customer differences

Key factor in adjusting marketing program to recognize

Market Segmentation

Process of identifying and profiling distinct groups of buyers

Market targeting

Process of selecting one or more market segments to enter

Accessible segment

Segment that can be effectively reached and served

Actionable segment

Segment that can be effectively targeted with marketing programs

Measurable segment

Segment that can be identified and measured

Differentiable segment

Segment that is distinguishable and responds differently

Substantial segment

Segment that is large enough to be worth targeting

Demographic segmentation

Segmenting market based on age, gender, income, etc.

Psychographic segmentation

Segmenting market based on lifestyle, interests, and values

Geographic segmentation

Segmenting market based on neighborhoods or geographic areas

Selective specialization

Targeting multiple market segments with different products

Market specialization

Targeting one market segment with all products

Product specialization

Targeting one market segment with multiple products