Segmentation, Targeting, Positioning

What are the various segmentation methods?

1.Geographic, Demographic, Psychographic, Geodemographic, Benefits, and Behavioral

Perceptual map

A map that displays, in two or more dimensions, the position of products or brands in the consumer's mind.

psychographic segmentation

Allows people to describe themselves using characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices.

Value proposition

Communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it.

Identify the six positioning steps

Determine consumers' perceptions and evaluations of the product or service in relation to competitors', identify competitors' positions, determine consumer preferences, select the position, monitor the positioning strategy.

Value

The benefits a customer perceives they'll gain from consuming a product or service.

one-to-one marketing

When a firm tailors a product or service to suit an individual customer's wants or needs.

Undifferentiated targeting strategy

When a firm uses a single marketing strategy to target different groups with similar needs.

Market basket analysis

a mathematical modeling technique firms can use to determine an association between a group of items that customers generally purchase together.

self-values

are goals for life, not just the goals one wants to accomplish in a day.

Occasion segmentation

behavioral segmentation based on when a product or service is purchased or consumed.

Behavioral Segmentation

divides customers into groups based on how they use the product or service.

demographic segmentation

groups consumers according to easily measured, objective characteristics such as age, gender, income, and education.

benefit segmentation

groups consumers on the basis of the benefits they derive from products or services.

market positioning

involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

geographic segmentation

organizes customers into groups on the basis of where they live

lifestyle

refers to the way a customer lives

self-concept

the image people ideally have of themselves.

geodemographic segmentation

uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers.

Loyalty segmentation

when a firm invests in retention and loyalty initiatives to retain their most profitable customers.

Micromarketing

when a firm tailors a product or service to suit an individuals customer's wants or needs.

differentiated targeting strategy

when a firm targets several market segments with a different offering for each.

Mass marketing

when a firm uses a single marketing strategy to target different group with similar needs.

concentrated targeting strategy

when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs.

ideal point

where a particular market segment's ideal product would lie on a perceptual map.