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