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31 Cards in this Set
- Front
- Back
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separation of consumers into smaller target markets |
segmenting |
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segmentation variables |
geography population demographics psychographics behavior/usage |
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demographics variables |
age gender ethnic income occupation |
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population trends |
smaller families household composition (traditional = mom, dad, 2 kids = 1/3) more people in suburbs than cities shrinking rural population birthrates immigration increased mobility |
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consumers born between 1979 and 1994 |
Generation Y |
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consumers born between 1965 and 1978 |
Generation X |
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consumers born between 1946 and 1964 |
baby boomers |
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Market:
fastest growing younger larger than average family size now largest ethnic minority |
Hispanic market |
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segmentation based on personal characteristics |
psychographics |
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psychographics is based on |
Psychological factors (internal thought process) Sociological factors (interact w/others) Anthropological factors (background) |
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VALS |
"Values and Lifestyle Profiles"
8 groups that exist in each other but in different proportions |
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VALS Groups |
Believers Achievers Innovators Thinkers Makers Experiencers Survivors Strivers |
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income after taxes |
disposable income |
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income after taxes and after necessities |
discretionary income |
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combination of demographic and geography; use of statistical data to target markets |
geodemography |
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A syndicated national service that assigns an identity to each zip code by using demographic characteristics and purchase behavior |
PRIZM |
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buying different items for different occasions |
usage occasion |
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B2B segmentation variables |
company size industry domestic vs international producer vs reseller |
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targeting strategies |
undifferentiated differentiated concentrated customized/combiner mass customization |
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targeting strategy that appeals to a broad spectrum of people; treats all customers the same |
undifferentiated |
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targeting strategy that develops different products for each different consumer group |
differentiated |
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targeting strategy that focuses on one segment |
concentrated |
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targeting strategy that tailors one strategy to multiple segments; multiple segments treated alike |
customized/combiner |
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targeting strategy that modifies products to meet individual wants/needs; treats everybody differently |
mass customization |
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Strategy aimed at how a product is perceived |
positioning |
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positioning strategy |
analyze competition, identify competitive advantage, match competitive advantage to selected segment by using the 4 P's, evaluate response to unique product profile |
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graphical representation of customer perceptions based on multiple attributes |
perceptual map |
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CRM Steps |
Identify customers (heavily data driven) Differentiate in terms of needs and values Determine cost efficient ways of interacting Customize product/service for each customer |
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CRM Characteristics |
Multiple touchpoints Share of customer Lifetime value Customer equity Focusing on high value customers |
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80/20 Rule |
80% of sales come from 20% of customers (good)
20% of sales come from 80% of customers (bad) |
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A systematic tracking of consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs |
Customer Relationship Management (CRM) |
