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Definition
| The process of dividing a larger market into smaller pieces |
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Term
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Definition
-Age-different want and needs
-Gender-Starts at a very young age
-Family Structure-impacts properties
-Income and Social Issues-have things in common
-Race and ethnicity-impacts preferences
-Geography-needs vary by location |
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Definition
-Children
-Teens
-Generation Y
-Generation X
-Baby Boomers
-Elderly |
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Definition
4-12
impacts family purchases |
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Definition
13-17
Spend money on feel good products |
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Definition
1977-1994
Children of Baby Boomers
26%of population
200 billion a year |
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Definition
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Definition
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Definition
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Term
| The Hispanic Market Segment |
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Definition
Brand loyalty-buy products from their own country of origin
Highly Concentrated-live together
Youthful- middle age is 23
Receptive to relationship building-avg household size is 3.5
appreciate companies trying to relate to them |
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Term
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Definition
Segment market in terms of shared attitude,interests,and opinions, and activities
Some organization develop their own psychographics segments for their consumers
-better understanding who their customers are |
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Term
| Metro-sexual:a new segmentation buzzword |
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Definition
sensitive
educated
in touch with feminine side |
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Term
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Definition
Slice consumer on the basis of they act toward, feel about,or use a product
-find out why someone uses or doesn't use a product
-heavy, moderate or light user
-80/20 Rule- 80% of sales come from 20% of our customers
-When they use the product the most |
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Term
| Segmenting Industrial Markets |
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Definition
Organizational Demographics
-firm size
-number of facilities
-domestic or multinational
-type of business
-production technology utilized |
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Term
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Definition
Evaluating Market Segments
Developing Segments Profiles
Choosing a Target Strategy |
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Term
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Definition
Step 1- Segmentation
Step 2-Targeting
Step 3-Positioning |
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Term
| Evaluating Market Segments |
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Definition
A viable target segment should:
-Have similar members
-Be measurable-in size and purchasing power
-Be large enough-to be profitable
-Be reachable by- marketing communications
- Have needs the marketer can serve |
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Term
| Developing Segment Profiles |
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Definition
description of a typical consumer in that segment. Includes:
-demographics
-location
-lifestyle
-and how frequently the customer buys the product. |
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Term
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Definition
Differentiated Marketing, Undifferentiated Marketing,
Concentrated Marketing,
Customized Marketing |
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Term
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Definition
developing one or more products for each of several customer groups.
- Used when customers are choosing among well-known brands have distinctive images and the company can identify one or more segments that have distinctive needs for different types of products. |
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Term
| Undifferentiated Targeting |
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Definition
Appealing to a broad spectrum of people
-Cheaper
-Same product appeal to many people |
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Term
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Definition
Focuses a firm effort of offering one or more products to a single segment
-Smaller firms with less resources |
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Definition
An approach that tailors specific products and the message about them to individual customers.
-doctors, lawyers and hairstylist uses this |
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Term
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Definition
An approach that modifies a basic good or service to meet the needs of an individual.
-Computer Companies are starting to use this (Creation of own personal computer) |
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Term
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Definition
Develop a market strategy aimed at influencing how customer perceive the product.
-analyze competition position
-Offer a product with competitive advantage
-Finalize the marketing mix
-Evaluate the target markets response |
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Term
| Analyze the competitors position |
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Definition
| What competition is are there? How do consumer perceive them? What are the substitutes? |
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Term
| Offer a product with a competitive advantage |
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Definition
provide a reason why consumer will choose your product over competition.
-offer a lower price
-superior image
-unique product feature
-better service
-more expertise |
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Term
| Finalize the marketing mix |
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Definition
marketing mix must match the selected segment. Goods and service must deliver benefits that the segment values, such as convenience or status. Must add value and satisfactions.
-Must set a reasonable price
-Make available where consumers are likely to go
-and communicate the product where consumer are going to notice it |
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Term
| Evaluate target market's response |
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Definition
modify any needed changes
firm might need to target a different segment or position. |
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Term
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Definition
Redoing a products position to respond to marketplace changes.
-Marlboro the cigarette company targeted women at first and then switched. |
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Term
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Definition
| a once popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia. |
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Definition
A distinctive image that captures a good's or service's character and benefits.
-cheap
-expensive
-elegant
-sexy
-cool |
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Definition
| A vivid way to construct a picture of where products or brands are located in consumers minds. |
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Term
| Customer Relationship Management |
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Definition
Allows a company to identify its best customers, stay on top of theirs needs and increase their satisfactions
communicating with customers |
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Term
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Definition
| Identify customers,Differentiate customers,Interact with customers, customize for your customers. |
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Term
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Definition
| get to know them in a much detail as possible |
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Term
| Differentiate among customers |
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Definition
| in terms of both their needs and their values to the company |
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Term
| Interact with the customer |
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Definition
| find ways to improve cost efficiency and the effectiveness of the interaction. |
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Term
| Customize for your customers |
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Definition
| Customize some aspects of the goods and service that you offer to each customer. This means treating customers differently based on what has been learned through customers interaction. |
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Term
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Definition
| Share of customers, Lifetime value of the customer, Customer equity, A greater focus on high-value customers |
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Term
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Definition
| the percentage of an individual customer purchase of a product this is a single brand, increase sales at a lower cost by advertising directly to a giving customer |
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Term
| Lifetime Value of a customer |
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Definition
| the potential profit generated by a single customers purchase of a firms products over the firms lifetime. |
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Term
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Definition
the financial value of a customer relationship throughout the lifetime of the relationship
-compare investments made to acquire new customers, retain old customers, and relationship enhancement with the financial return on those investments |
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Term
| A greater focus on High-Value Customers |
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Definition
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