Marketing Chapter 8

Front 1

Segmentation

Back 1

Division of a market into homogeneous groups with similar needs, wants, values, and buying behaviors

Front 2

Targeting

Back 2

The selection of specific segments of potential customers for emphasis

Front 3

Positioning

Back 3

Creating an image in the mind's of consumers about the organization or product in relation to competitors

Front 4

Target Market Strategies

Back 4

Defines number of markets and relative amount of resources allocated to each

Front 5

Undifferentiated Market Strategy

Back 5

Single mass market, one approach for all

Large proportion of customers must have similar needs

Front 6

Concentrated Market

Back 6

Concentrated- single well defined market, one approach for particular market, focus on one segment

Front 7

Differentiated Market

Back 7

Several markets, different approaches for each

Front 8

Mass customization

Back 8

Serves one or several markets while efficiently responding to the needs and desires of individual customers

Front 9

Segmentation Variable

Back 9

Any descriptive characteristic that helps separate all potential purchasers into one group

Geographic, demographic, diversity, lifestyle, behavior, benefit

Front 10

Psychographics

Back 10

marketing approaches and tools used to identify lifestyles based on measures of consumer values, activities, interests, opinions, and demographics

Front 11

Behavioristic Segmentation

Back 11

Categorizes consumers based on people's awareness, product and media uses, and actions

Usage, readiness, ability, loyalty, media and shopping habits

Front 12

Segmentation by benefit

Back 12

Divides market into homogenous groups based on the attributes consumers seek from a particular product class

Front 13

For market segmentation to succeed

Back 13

1. Customer needs must be heterogeneous

2. Segments must be identifiable and divisible

3. At least one segment must have enough profit potential

4. Company must be able to reach chosen segments

Front 14

Steps for positioning

Back 14

1. Identify the attributes or characteristics used by buyers in segment

2. Diagram most important dimensions on grid

3. Locate brand relative to others based on how customer's perceive it

4. Identify ideal position for buyers in segment

5. Determine fundamental way to position product

6. Develop marketing mix that supports positioning strategy

Front 15

Bases for positioning

Back 15

Benefit, price, time of use, product user, direct comparison, product class/category, country of origin