Term
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Definition
1) Generic
- consumer has broad needs and many marketers satisfying those needs
- ex) consumer needs transportation
2) Product
- consumers have similar needs
- ex) bus market, motorcycle market, etc. |
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Term
| General Steps Segmentation |
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Definition
- Two steps:
1) naming broad product markets (transportation)
2) segmenting into homogeneous product markets (trucks) |
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Term
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Definition
- Aggregating process
- Clustering people with similar needs |
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Term
| Methods for developing strategies in product markets |
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Definition
1) single target market
- 1 target with 1 marketing mix
2) multiple target market
- multiple target markets with each its own unique marketing mix
- best option
3) combined target market
- targets 2 or more marketing segments with 1 marketing mix |
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Term
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Definition
| Develops a different marketing mix for each segment |
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Term
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Definition
| Aims at two or more submarkets with the same marketing mix |
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Term
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Definition
1) Homogeneous within
- segments should share similarities
2) Heterogeneous between
- there should be a difference between the segments you are targeting and those you're not
3) Substantial
- segment should be big enough to make a profit
4) Operational
- segments should respond to your marketing efforts
5) Accessible
- can you reach your segment?
6) Durable
- long-lasting segment |
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Term
| Segmenting dimensions - consumer markets |
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Definition
- geographic
- psychographic
- demographic (most widely used)
- behavioral |
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Term
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Definition
- region (some products do better in different regions)
- size and population density
- climate |
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Term
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Definition
- values, attitudes, personality, lifestyle
- hard to measure
- VALS 2 (best method to measure psychographic) |
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Term
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Definition
- age
- gender
- family size/life cycle
- income
- occupation
- education
- religion, race, nationality |
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Term
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Definition
- needs and benefits (benefit = how product satisfies needs)
- usage (80/20 rule)
- brand familiarity and loyalty
- buying situation
- type of problem solving
- location of purchase |
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Term
| Segmenting dimensions - organizational markets |
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Definition
- geographic
- size of customer (ex. Walmart vs. Ingles)
- purchasing method
- type of relationship
- product usage
- type of customer (ex. supermarkets vs. restaurants) |
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Term
| Detailed steps in segmenting |
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Definition
1) name broad product market
- what product market are you competing in?
2) list potential customers' needs
3) form homogeneous submarkets
4) identify determining dimensions
- factors that affect what brand people want to buy
5) name product markets
- break down broad product market
6) determine why segments behave as they do
- why do certain consumers want certain things - hotels
7) determine size of segments |
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Term
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Definition
1) clustering techniques
- can use database to group consumers with things in common
2) customer relationship management
- finding out as much as you can about your customers |
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Term
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Definition
- targeting children
- gender stereotypes
- racial stereotyping
- privacy issues
- targeting those who lack spending power |
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Term
| Positioning and differentiation |
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Definition
- positioning is determined by customers
- company and competitor's products
- differentiation (developing a unique mix)
- perceptual map ('product space') |
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Term
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Definition
- price changes
- trade up
- trade down
- catch a trend
- refute what consumers think |
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Term
| Positioning and differentiation |
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Definition
- positioning: how customers view your brand
- company and competitor's products
- differentiation: what separates you from competition
- perceptual map: where your product is in a customer's mind |
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Term
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Definition
- price changes (budget item in consumer's mind)
- trade up (add something more to your product)
- trade down (take something away from a product and make it cheaper)
- catch a trend
- refute what consumers think |
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