Hacker Baylor Marketing Ch. 7

market fragmentation
the creation of many consumer groups due to a diversity of distinct needs and wants in modern society
target marketing strategy
divides the total market into different segments on the basis of customer characteristics, selecting one or more segments and developing products to meet the needs of those specific segments
Segmentation
the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
targeting
a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to turn them into customers
demographics
statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure
usage indicators
indicators used in behavioral market segmentation based on when consumers use a product most
segmentation variables
dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences
geographic information system (GIS)
a system that combines a geographic map with digitally stored data about the consumers in a particular geographic area
positioning
a strategy that influences how a particular market segment perceives a good or service in comparison with the competition
repositioning
the process of redoing a product’s position to respond to marketplace changes
content marketing
the strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics
segmentation variable
a dimension that divides the total market into fairly homogenous groups, each with different needs and preferences
Generational marketing
a strategy that markets to members of a generation, who tend to share the same outlook and priorities
geodemography
a segmentation strategy that combines geography with demographics
the first stage in a positioning decision
to analyze competitors’ positions
the second stage in a positioning decision
offering a good or service with a competitive advantage
the third stage in a positioning decision
finalizing the marketing mix
the last (fourth) stage in a positioning decision
evaluating responses and modifying the strategy as needed
usage rate
measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service
80/20 rule
a marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product’s sales
a badge
a milestone or reward earned for progressing through a video game
concentrated targeting strategy
the focus on a firm’s efforts on offering one or more products to a single segment
undifferentiated target strategy
appeals to a broad spectrum of people
differentiated targeting strategy
develops one or more products for each of several distinct customer groups and makes sure these offerings are kept separate in the marketplace
customized marketing strategy
tailors specific products and the messages about them to individual customers
Generation X
a group of consumers who often have a cynical attitude toward marketing
Generation Y
a group of consumers who are technology savvy and often have no religious affiliation
Baby boomers
a group of consumers who are willing to invest money, time, and energy to maintain their youthful image
Metrosexuals
straight, urban males who are keenly interested in fashion, home design, gourmet cooking, and personal care
first step in the target marketing process
segmentation
second step in the target marketing process
targeting
third step in the target marketing process
positioning
psychographics
the use of psychological, sociological, and anthropological factors to construct market segments
micromarketing
the ability to identify and target very small geographic segments that sometimes amount to individuals
behavioral segmentation
a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service
target market consists of….
the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
a perceptual map
a technique used to visually describe where brands are “located” in consumers’ minds relative to competing brands
brand personality
an identity for the product market that the target market will prefer over those of competing brands. it is a distinctive image that captures a good or service’s character and benefits
segment profile
a description of the “typical” customer in a segment
long tail
a new approach to segmentation based on the idea that companies can make more money by selling small amounts of items that only a few people want, provided they sell enough different items
as part of the decision-making process in positioning, marketers must __________, which means to provide a reason why consumers will perceive the product as better than the competition
define the competitive advantage
mass customization
an approach that modifies a basic good or service to meet the needs of an individual
retro brand
a once-popular brand that has been revived to experience a popularity comeback