Chapter 8 Principles of Marketing

Product Differentiation
a positioning strategy that some firms use to distinguish their products
Target Market
a group of people or organizations who maintains a market mix for a group of people
Optimizers
business customers who consider numerous supplies before selecting one
Usage Rate Segmentation
former users, potential users, first time users, light users, heavy users
Repositioning
changing consumers perceptions of a brand in relations to competing brands
Multi-Segment Target Strategy
two or more segmenting market
Position
The place a product/brand occupies a consumers mind
Satisfillers
satisfying products and delivery requirements
Cannibalization
when new sales of new product cut into sales of old product
Family Life Cycle
a series of stages occupied by “children”, marital status, and age
Market Segments
a subgroup of people sharing one or more characteristics that have similar product needs
Psychographic Segmentation
market segmentation on the basis of personality motives lifestyles and geo-demographics
Perceptual Mapping
displaying/graphing two or more dimensions of the location product brands or groups of products in customer minds
Concentrating Targeting Strategy
selecting one segment or a market
Segmentation Bases
characteristics of individuals, groups, or organizations
80/20 Principle
20% of the customers generate 80% of the demand
Niche
one segment of a market
Geographic Segmentation
segmenting markets by region of a country or market size, density and climate
Benefit Segmentation
grouping customers who will benefit from specific products
Geo-Demographic Segmentation
segmenting customers into lifestyle categories
Undifferentiated Targeting Mix
views market as ONE big market
Positioning
developing specific marketing mix to influence customers overall perception of a brand, product line, or organization
Demographic Segmentation
age, gender, income, ethnic background, and family lifecycle