Term
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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 |
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Term
| The Bases for Segmenting Consumer Markets (4) |
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Definition
Theese four are used to ___ the Market.
1Geographic
2Demographic
3Psychographic
4Behavioral |
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Term
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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 |
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Term
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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 |
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Term
| Psychographic segmentation |
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Definition
(MARKET SEGMENTATION)divides
buyers into different groups based on social class, lifestyle, or personality
traits |
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Term
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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 |
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Term
| Requirements for Effective Market Segmentation |
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Definition
These for are the ________
• Measurable
• Accessible
• Substantial
• Actionable |
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Term
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Definition
(Requirements of MS)
examples include the size, purchasing power, and profiles of the
segments |
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Term
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Definition
(Requirements of MS)
refers to the fact that the market
can be effectively reached and served |
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Term
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Definition
(Requirements of MS)
refers to the fact that the markets are large and profitable enough to serve |
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Term
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Definition
(Requirements of MS)
refers to the fact that effective
programs can be designed for attracting and
serving the segments |
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Term
| Options for Selecting Market Segments |
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Definition
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
• Micromarketing |
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Term
| Undifferentiated marketing |
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Definition
(Selecting Market Segments)
targets the whole market with one offer
• Mass marketing
• Focuses on common needs rather than what’s different |
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Term
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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 |
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Term
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Definition
(Selecting Market Segments)
targets a small share of a large market
• Limited company resources
• Knowledge of the market
• More effective and efficient |
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Term
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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 |
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Term
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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 |
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Term
| 3 Factors for Evaluating Market Segments |
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Definition
What are these 3?
User status
Usage rate
Loyalty status |
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Term
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Definition
(Evaluating Market Segments)
divides buyers into ex-users, potential
users first time users and regular users of a users, first-users, product |
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Term
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Definition
(Evaluating Market Segments)
Divides buyers by how often.
Divides buyers into light, medium, and
heavy product users – |
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Term
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Definition
(Evaluating Market Segments)
divides buyers into groups according to their degree of loyalty |
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