MKT 3501 CHAPTER 7
Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
Geographic Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Market Segmentation
4 major steps in designing a customer value-driven marketing strategy
Market Segmentation; Market Targeting; Differentiation; Positioning
Evaluating each market segment's attractiveness and selecting one or more segments to serve
Market Targeting
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Undifferentiated (Mass) Marketing
Dividing a market into different age and life-cycle groups
Age and Life-Cycle Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product
Behavioral Segmentation
Dividing the market into segments according to the different benefits that consumers seek from the product
Benefit Segmentation
An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices
Competitive Advantage
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Concentrated (Niche) Marketing
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Demographic Segmentation
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________.
Differentiable
A market-coverage strategy in which a firm targets several market segments and designs separate offers for each
Differentiated (Segmented) Marketing
Actually differentiating the market offering to create superior customer value
Differentiation
Dividing a market into different segments based on gender
Gender Segmentation
Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
Image
Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
Income
Dividing a market into different income segments
Income Segmentation
Tailoring brands and marketing programs to the needs and preferences of individual customers
Individual Marketing
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
Inter-Market (Cross-Market) Segmentation
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
Lifestyle
To be useful, market segments must be? (5 things)
Measurable; Accessible; Substantial; Differentiable; Actionable
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Micromarketing
Which value proposition is the most difficult to sustain in the long run?
More For Less
________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.
More For More
Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Occasion Segmentation
________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.
Perceptual Positioning Maps
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Positioning
A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference)
Positioning Statement
The way a product is defines by consumers on important attributes - the place it occupies in consumers' minds relative to competing products
Product Position
Dividing a market into different segments based on lifestyle or personality characteristics
Psychographic Segmentation
Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.
Same For Less
In evaluating different market segments, a firm must look at what 3 factors?
Segment size and growth; Segment structural attractiveness; Company objectives and resources
A set of buyers who share common needs or characteristics that a company decides to serve
Target Market
What is the overall purpose of differentiation?
To create superior customer value
The full positioning of a brand - the full mix of benefits on which it is positioned
Value Proposition