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10 Cards in this Set

  • Front
  • Back

Market Segmentation

Process of subdiving heneral markets into distinct segments with different needs and responds differently to marketing efforts


The selection of market segments to which a company plans to sell products/services


Seeks to make consumers perceive that a brand occupies a distinct position relatice to other competing brands

Advantages of STP

Focus on organization’s core competencies vs. spreading resources broadly across the market

More likely to increase customer satisfaction with product targeted for a specific market

Profitability increases as an organization can analyze product targets and retail price charged by segment and select the segment that is most attractive

Competitive advantage (e.g. Enterprise rent-a-car)

Niche marketing (e.g. Elmhurst Milks)

Segmentation Variables

Functional- performance, reliability

Service and convenience




Consumer Demographics

Consumer Geographics

Consumer Psychographics

Targeting Criteria

Potential- segments that have financial potential

Alignment- segments that are best aligned with company's core competencies

Marketability- segments are accessible, distinct, and responsive to a value proposition

5 Types of segment strategies

Single segment- concentrate efforts on one market segment

Selectice specialization- marketing multiple independent products to multiple segments

product/service specialization-focusing on a specific product/service

market specialization- market variety of goods/services to one market

full market coverage- offer multiple categories products to multiple markets

4 approaches in marketing to target segments

marketing mix- price, product, place, promotion (chanel-luxury)

direct marketing campaigns- sell products services directing to customers (amazon)

website marketing campaigns- enable customers to select and configure purchases when shopping online (cisco)

retail marketing- carry wide selection to serve multiple segments (home depot)

perceptual maps

graphically represents consumers perceptions of product/service attributes the maps show us the position of products/ services in their mine

advantages of perceptual maps

cluster identification


new opportunities

commcunications vehicle

consumer perceptions