Marketing: Chapter 8

Front 1

Undifferentiated Segmentation Strategy

Back 1

-marketing strategy a firm can use if the product or service is perceived to provide the same benefit to everyone, with no need to develop separate strategies for different groups
-shotgun approach
-common for necessities like sugar and salt

Front 2

Differentiated Segmentation Strategy

Back 2

-a strategy through which a firm targets several market segments with a different offering for each
-helps obtain bigger share of the market
-ex. Gap is broken up into Banana Republic, The Gap and Old Navy

Front 3

Concentrated Segmentation Strategy

Back 3

-marketing strategy of selecting a single, primary market and focusing all energies on providing a product to fit that market's needs
-Abercrombie and Fitch targets young, good looking people and them only

Front 4

Micromarketing

Back 4

-extreme for of segmentation also called "one to one" that tailors a product or service to suit an individual consumers wants and needs
-ex. Dell offering custom made computer

Front 5

Demographics

Back 5

-grouping of consumers according to easily measured, objective characteristics
-age, gender, income, and education

Front 6

Psychographic Segmentation

Back 6

-delves into how consumers describe themselves
-how people use their time and what underlying reason determine their choices
-self values (goals for life)
-lifestyles (the way we live)
-self concept (how people perceive you)

Front 7

Benefit Segmentation

Back 7

-grouping of consumers on the basis of the benefits they derive from products or services
ex. Flyphone appeals to tweens (because it's cool) and parents (because they can regulate use)

Front 8

Loyalty Segmentation

Back 8

-strategy of investing loyalty initiatives to retain the firm's most profitable customers
-ex. United Airlines "Premier Executive 1K" receive guaranteed reservations, priority check in and special seating priorities

Front 9

Positioning Strategies

Back 9

-value (relationship between price and quality)
-salient attributes (focusing on the product attributes that are most important to the target market)
-symbol (logo and trademarks)
-competition (positioning against a specific competitor)

Front 10

Geodemographic Segmentation

Back 10

-grouping of consumers on the basis of combination of geographic, demographic and lifestyle characteristics