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44 Cards in this Set

  • Front
  • Back
Four Steps in designin a customer-driven strategy
1. Market Segmentation
2. Market Targeting
3. Differentiation
4. Market Positioning
Market Segmentation
process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
Market Targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
differentiating firm's market offering to create superior customer value
Market Positioning
arranging for product to occupy clear, distinctive, and desirable place relative to competing products in minds of target consumers
Major bases for segmenting consumer markets
1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioral segmentation
Major bases for segmenting business markets
1. Customer-operating characteristics
2. Purchasing approaches
3. Situational factors
4. Personal characteristics
Geographic Segmentation
divided into nations, regions, states, counties, or cities
Demographic Segmentation
Most Popular and easiest to measure!
Divided into age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
Psychographic Segmentation
divides buyers into different groups based on social class, lifestyle, or personality traits
Behavioral Segmentation
divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product
Benefits sought
User status
Usage rate
Loyalty status
Individual Marketing
involves tailoring products and marketing programs to the needs and preferences of individual customers
Also known as:
One-to-one marketing
Mass customization
Markets-of-one marketing
Intermarket Segmentation
divides consumers into groups with similar needs and buying behaviors even though they are located in different countries
Local Marketing
tailoring brands and promotion to the needs and wants of local customer groups; cities, neighborhoods, stores
Increased marketing effectiveness in competitive markets
More customer-specific offerings
Increased manufacturing and marketing costs
Less economy of scale
Dilution of company image
tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing
Individual marketing
Positioning Statement
states the product’s membership in a category and then shows its point-of-difference from other members of the category.

Example: To (target segment and need) our (brand) is (concept) that (point of difference).
Product Position
way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products
Undifferentiated or Mass Marketing
targets the whole market with one offer

Focuses on common needs rather than product or consumer differences
Value Proposition
the full mix of benefits upon which a brand is positioned
More for more
More for the same
Same for less
Less for much less
More for less
4 Consumer Product Classifications
1. Convenience products: bought frequently, immediately, little comparison (gum,newspaper)
2. Shopping products: compared carefully on suitability, quality, price, and style (cars, furniture)
3. Specialty products: unique characteristics, brand identification (medical serv, $$$ electronics, clothes)
4. Unsought products:
Life insurance
Funeral services
Blood donations
name, term, sign, or design that defines seller
Brand Equity
positive differential effect that knowing the brand name has on customer response to product/service
Brand Extension
extending existing brand name to new product categories
practice of using the established brand names of two different companies on the same product
Interactive Marketing
training service employees to interact with customers to satisfy needs
Internal Marketing
Orienting and motivating customer-contact employees and the supporting service people to work as team to provide customer satisfaction
Line Extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
Private Brand
(store brand) created and owned by reseller of product/service
Product Line
group of products closely related, function in similar manner, sold to same customer groups, prices
Product Mix
(product portfolio) set of all product lines and items that seller offers
Product Quality
characteristics of product/service that bear on its ability to satisfy stated or implied customer needs
activity or benefit offered that is intangible and does not result in ownership
Service Inseperability
major characteristic of services. They are bought and consumed at the same time and cannot be seperated from providers
Service Ingangibility
major characteristic of services. cannot be tasted, seen, felt, heard or smelled bofore they are bought
Service Perishability
Major characteristic of services--cannot be stored for later use/sale
Service Variability
Major characteristic of services--quality may very greatly depending on who provides them, when, where, and how
Social Marketing
use of commercial marketing concepts in programs designed to influence individuals' behavior to improve well-being of individual and society
Product Mix Depth
Number of versions of product offered in each product line
How closely various product lines are in end use, production requirements, or distribution channels
Brand Strategy Decisions
Brand Positioning (attributes, benefits, beliefs, values) > Brand Name Selection (selection, protection) > Brand Sponsorship (manufacturers/private brand, Licensing, co-branding) > Brand Development (line/brand extensions, multi-brand, new brands)
4 Major Characteristics of Services
1. Intangibility
2. Variability
3. Perishability
4. Inseparability
Internal Marketing is between
Company <--> Employee
Interactive Marketing is between
Employees <-->Customers
External Marketing is between
Company <--> Customers