Term
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Definition
| The creation of many consumer groups due to a diversity of distinct needs and wants in modern society. |
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Term
| Target Marketing Strategy |
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Definition
| Marketing to one or more segments rather than the mass market due to market fragmentation |
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Term
| The 5 Criteria for Identifying Market Segments |
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Definition
i) Similar enough within the group.
ii) Different from other groups
iii) Large enough to matter
iv) Measurable (has purchasing power)
v) Reachable |
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Term
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Definition
| The process of dividing up the larger mass market into smaller factions |
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Term
| The 3 Methods of Segmenting |
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Definition
i) Segment by Behaviour
ii) Segment by Psychographics
iii) Segment by Demographics |
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Term
| The 2 Types of Behavioural Segmenting |
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Definition
i) Benefit Segmentation
ii) Usage Segmentation |
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Term
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Definition
| 80% of sales come from 20% of consumer base |
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Term
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Definition
| A strategy of providing many types of products in short periods of time and quantity |
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Term
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Definition
| Dividing the consumer base based on how they feel towards, and use a product |
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Term
| Psychographic Segmentation |
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Definition
| Dividing the consumer base based on their attitudes, values, beliefs, or other psychological orientations |
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Term
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Definition
| Dividing the consumer base based on objective criteria. |
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Term
| The 6 Demographic Segmentation Possibilities |
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Definition
i) Gender
ii) Age
iii) Social/Income Class
iv) Family Life Cycle
v) Ethnicity
vi) Geography |
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Term
| The 4 Targeting Strategies |
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Definition
i) Undifferentiated Targeting Strategy
ii) Differentiated Targeting Strategy
iii) Concentrated Targeting Strategy
iv) Custom Marketing Strategy |
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Term
| Undifferentiated Targeting Strategy |
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Definition
| Appealing to a broad spectrum of consumers |
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Term
| Differentiated Targeting Strategy |
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Definition
| Appealing to several distinct segments with one or more product |
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Term
| Concentrated Targeting Strategy |
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Definition
| Appealing to a single segment |
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Term
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Definition
| A type of concentrated targeting strategy where the target is very small |
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Term
| Custom Targeting Strategy |
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Definition
| Appealing to individual customers with specific products that are tailored |
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Term
| The 4 Focuses of Positioning |
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Definition
i) Strategic Orientation
ii) Defendability
iii) Differentiation
iv) Brand Personality |
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Term
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Definition
| The overall approach on how a firm plans on competing and creating value |
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Term
| The 3 Types of Strategic Orientation |
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Definition
i) Product Leadership
ii) Customer Intimacy
iii) Operational Excellence |
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Term
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Definition
| A type of strategic orientation - focuses on developing and introducing new and innovative products |
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Term
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Definition
| A type of strategic orientation - focuses on creating tailored solutions for narrow markets |
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Term
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Definition
| A type of strategic orientation - focuses on cost effectiveness, efficiency, and customer satisfaction |
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Term
| Symbolic-Expressive Value |
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Definition
| A type of strategic orientation - focuses on differentiation through psychological meaning |
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Term
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Definition
| How a firm wants to be differentiated |
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Term
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Definition
| How consumers perceive the brand |
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Term
| The 4 Challenges of Positioning |
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Definition
i) Vague Positioning
ii) Confused Positioning
iii) Off-target Positioning
iv) Over-Positioning |
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Term
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Definition
| A challenge of positioning - the main points of differentiation are not clearly articulated |
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Term
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Definition
| A challenge of positioning - the main points of differentiation are constantly changing; confusing customers |
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Term
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Definition
| A challenge of positioning - the main points of differentiation do not focus on the key values of the target audience |
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Term
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Definition
| A challenge of positioning - the main points of differentiation are too narrow and do not allow for adaptation |
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Term
| Customer Relationship Management |
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Definition
| A systematic tracking of consumers' preferences and behaviours in order to tailor the value proposition as closely as possible to each individual's unique wants and needs |
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Term
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Definition
i) Identify the customers
ii) Differentiate their needs
iii) Interact and learn
iv) Customize and tailor |
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Term
| The 4 Critical Elements of CRM |
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Definition
i) Share of Customer
ii) Lifetime Value of a Customer
iii) Customer Equity
iv) Customer Prioritization |
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