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Marketing Final
Module 5
21
Marketing
11/29/2010

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Term
Market segmentation
Definition
is the 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
Ex: Senior citizen market or Hispanic market or College student market
Term
The Bases for Segmenting Consumer Markets (4)
Definition
Theese four are used to ___ the Market.
1Geographic
2Demographic
3Psychographic
4Behavioral
Term
Demographic Segmentation
Definition
(MARKET SEGMENTATION)divides the market into groups based on variables such as age, gender, family size, family life cycle,
income, occupation, education, religion,
race, generation, and nationality
Term
Demographic Segmentation
Definition
(MARKET SEGMENTATION)
_____ is the most popular segmentation method because consumer needs, wants, and usage often
vary closely with demographic variables and
are easier to measure than other types of variables
Term
Psychographic segmentation
Definition
(MARKET SEGMENTATION)divides
buyers into different groups based on social class, lifestyle, or personality
traits

Term
Behavioral segmentation
Definition
(MARKET SEGMENTATION)divides buyers into
groups based on their knowledge, attitudes, uses, or response to a product.
Considers:
• Occasion
• Benefits sought
• User status
• Usage rate
• Loyalty status
Term
Requirements for Effective Market Segmentation
Definition
These for are the ________
• Measurable
• Accessible
• Substantial
• Actionable
Term
Measurable
Definition
(Requirements of MS)
examples include the size, purchasing power, and profiles of the
segments
Term
Accessible
Definition
(Requirements of MS)
refers to the fact that the market
can be effectively reached and served
Term
Substantial
Definition
(Requirements of MS)
refers to the fact that the markets are large and profitable enough to serve
Term
Actionable
Definition
(Requirements of MS)
refers to the fact that effective
programs can be designed for attracting and
serving the segments
Term
Options for Selecting Market Segments
Definition
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
• Micromarketing
Term
Undifferentiated marketing
Definition
(Selecting Market Segments)
targets the whole market with one offer
• Mass marketing
• Focuses on common needs rather than what’s different
Term
Differentiated marketing
Definition
(Selecting Market Segments)
targets several different market segments and designs separate offers for each
• Goal is to achieve higher sales and stronger position
• More expensive than undifferentiated marketing
Term
Concentrated marketing
Definition
(Selecting Market Segments)
targets a small share of a large market
• Limited company resources
• Knowledge of the market
• More effective and efficient
Term
Micromarketing
Definition
(Selecting Market Segments)
is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
• Local marketing
• Individual marketing
Term
Product position
Definition
is the way the product is
defined by consumers on important
attributes—the place the product occupies in consumers’ minds relative to competing products
• Perceptions
• Impressions
• Feelings
Term
3 Factors for Evaluating Market Segments
Definition
What are these 3?
User status
Usage rate
Loyalty status
Term
User status
Definition
(Evaluating Market Segments)
divides buyers into ex-users, potential
users first time users and regular users of a users, first-users, product
Term
Usage rate
Definition
(Evaluating Market Segments)
Divides buyers by how often.
Divides buyers into light, medium, and
heavy product users –
Term
Loyalty status
Definition
(Evaluating Market Segments)
divides buyers into groups according to their degree of loyalty