Kotler|Armstrong Principles of Marketing Chapter 7 Vocabulary

Market segmentation
Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behavior who might require separate products of marketing mixes
Target marketing
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods
Demographic segmentation
Dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race, and nationality
Age and life-cycle segmentation
Dividing a market into different age and life-cycle groups
Gender segmentation
Dividing a market into different groups based on gender
Income segmentation
Dividing a market into different income groups
Psychological segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics
Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
Target market
A set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Differentiated (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups—includes local marketing and individual marketing
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers—also labeled “markets-of-one marketing,” “customized marketing,” and “one-to-one marketing”
Product position
The way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products
Competitive advantage
An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
Value proposition
The full positioning of a brand—the full mix of benefits upon which it is positioned
Positioning statement
A statement that summarizes company or brand positioning—it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference)