Marketing Test #2 - Chapter 6 - Segmentation, Target Market, & Positioning

Undifferentiated (mass) Marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Good for uniform products such as steel or fruits.

Differentiated (segmented) Marketing

A market-coverage strategy in which a firm decides to target several market segments an designs separate offers for each. ex. P&G makes Tide, Gain, Cheer, Era for its different target markets. Good for products that vary in design and function.

Concentrated (niche) Marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. ex. Whole Foods. Is more effective and efficient.

Target Market

A set of buyers sharing common needs or characteristics that the company decides to serve. Helps companies become more efficient and effective by focusing on segments they can satisfy best and most profitably with carefully tailored offers.Things to consider when choosing a targeting strategy are market variability, product life cycle, competitors marketing strategies, resources and other environmental factors.

VALS Framework

Best known psychographic segmentation system. Stands for Values and Lifestyles, places customers into one of eight unique groups based on motivations(ideals, achievement& self-expression) as well as levels of resources and innovation.

Geodemography

Combines geography with Demographics, lifestyle and consumer behaviors for shopping, financial, media and more.

Socially Responsible Targeting

Considering the implications of how and to who a product is being marketed in order to avoid generating controversy and harm to society.

Differentiation

Creating superior customer value by distinguishing a product from the competition or the firms other products. The difference must be important, distinctive, superior, communicable, preemptive, affordable and profitable.

Income Segmentation

Dividing a market into different income segments

Gender Segmentation

Dividing a market into different segments based on gender.

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Psychographic Segmentation

Dividing the market into different segments based on social class, lifestyle, or personality characteristics. W Hotels for fancy hip people.

Occasion Segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item. Ex. MnM's specific to holidays for snacks.

Market Segmentation

Dividing the total market into smaller segments based on buyers needs, characteristics or behaviors that might require a separate marketing strategy. Effective segmentation means segments should be measurable, accessible, substantial, differentiable and actionable so that programs can be assigned to attract this segment.

Market Targeting

Evaluating segments based on segment size, growth, structural attractiveness, company objectives and resources.

Intermarket (cross-market) segmentation

Grouping consumers with similar needs and buying behaviors irrespective of their location. Lexus targets the Global elite regardless of their country.

Multiple Segmentation Bases

Help companies identify smaller, better-defined target groups, identify and understand key consumer segments and reach customers more efficiently by tailoring market offerings and messages to customers specific needs. Most marketers usually use a combinations of these.

Market Segment Evaluation

Looking into the attractiveness of a market segments based on competitors, barriers to entry, substitute products, buyer purchasing power and powerful suppliers.

Customer-Driven Marketing Strategy

Marketing strategy that focuses on creating value for targeted customers.

User Status

Markets can be segmented into consumers can be nonusers, ex-users, potential users, first-time users and heavy users.

Loyalty Status

Markets can be segmented into consumers that are loyal or not to brands, stores and companies. Loyal users can promote by word of mouth. Less loyal buyers can detect which brands are most competitive with its own. Looking at customers who are shifting away from a brand can help detect weaknesses in a product/brand.

Usage Rate

Markets can be segmented into light, medium and heavy users.

Value Proposition

Positioning of a brand--the full mix of benefits on which it is positioned. The reason why a customer should buy your product above others. This can be more for more, more for the same, more for less, the same for less and less for much less.

Market Targeting

Selecting the segment or segments to enter by evaluating the markets attractiveness..

Micromarketing

Tailoring Products and marketing programs to the needs and wants of specific individuals and local customer segments: it includes local marketing (tailoring to local cities, neighborhoods and even stores) and individual marketing(tailoring to needs of individual customers through mass customization ex. MnM pictures.

Product Life Cycle

The stage in which the product is, from Development, to Introduction, to growth, to maturity to to decline. affects the marketing strategy you should use. ex. a product that has just been launched should be launched with one version only instead of many different types.

Product Position

The way a product is defined by consumers on important attributes: the place the product occupies in consumers minds relative to competing products. Brands happen in the minds of consumers.

Positioning statement

a statement that summarizes company or brand positioning using a format: To (target segment and need) our (brand) is (concept) that (point of difference).

Competitive Advantage

advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices. Marketers must offer points of differentiation in product, services, channels, people or image. Companies can have one unique selling proposition or have a well rounded product.

Positioning

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Age and life-cycle segmentation

dividing a market into different age and life-cycle groups. Products for Seniors.

Benefit segmentations

dividing a segment based on the different values that consumers seek from the product. Mountain Bikes vs. City Bikes.

Demographic Segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation.

Segmentation Variables

factors used to segment consumer markets: Geographic, Demographic, Psychographic and Behavioral.

Effective Segmentation

requirements for a successful segmentation: Measurable, accessible, substantial, differentiable, actionable.

Market Variablility

the amount of variation in needs and wants of one consumer to another in a target market.

Business Market Segmenting

variables used to segment business markets. Operating characteristics, purchasing approaches, situational factors and personal characteristics.

International Market Segmenting

variables used to segment international markets such as geographic location, economic factors, political, cultural and legal factors.