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.