Term
| Undifferentiated target market strategy (mass marketing) |
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Definition
o This is used when everyone might be considered a potential user of it product
o Focuses on similarities in needs rather than differences
o Used for many basic commodities (gas, salt, sugar) |
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Term
| Differentiated target market strategy |
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Definition
o Target several market segments with a different offering for each
o Helps firms gain a larger market share
o Diversifies and lowers risk (but more costly) |
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Term
| Concentrated target market strategy |
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Definition
o Single, primary market
o Good strategy for entrepreneurial start-up ventures |
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Term
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Definition
o Firm tailors a product or service to suit an individual customer’s wants or needs
o Also called one-to-one marketing
o Easy for small companies, difficult for large
o Internet allows for efficient micromanagement
o Internet simplifies customer identification |
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Term
| Methods for describing and categorizing segments |
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Definition
Geographic
Demographic
Psychographic
Geodemographic
Behavioral
Benefit |
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Term
| 4 Elements of segment attractiveness |
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Definition
Identifiable
Substantial
Responsive
Profitable |
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Term
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Definition
• Unique value that a product or service provides to its customers, and how it is better than and different from those of competitors
• Goods positioned according to value and salient attributes |
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