| Question |
Answer |
| Positioning |
Arranging for a market offering 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, counties, cities, or neighborhoods. |
| Market segmentation |
The process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. |
| Demographic segmentation |
Divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. |
| Age and life-cycle stage segmentation |
The process of offering different products or using different marketing approaches for different age and life-cycle groups. |
| Gender segmentation |
Divides the market based on sex (male or female) |
| Income segmentation |
Divides the market into affluent or low-income consumers |
| Psychographic segmentation |
Divides buyers into different groups based on social class, lifestyle, or personality traits |
| Behavioral segmentation |
Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status |
| Multiple segmentation |
Identifies smaller, better-defined target groups |
| Geodemographic segmentation |
Multivariable segmentation that divides groups into consumer lifestyle patterns |
| Intermarket segmentation |
Divides consumers into groups with similar needs and buying behaviors even though they are located in different countries |
| Undifferentiated marketing |
Targets the whole market with one offer |
| Differentiated marketing |
Targets several different market segments and designs separate offers for each |
| Micromarketing |
The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations |
| Local marketing |
Tailoring brands and promotion to the needs and wants of local customer groups |
| Individual marketing |
Tailoring products and marketing programs to the needs and preferences of individual customers |
| 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. i.e. Perceptions Impressions Feelings |
| 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 |
| In general, a company should only enter a segment when it can |
Offer superior value and gain advantage over customers. |
| Business marketers do not segment the market by |
Brand personalities |
| Marketers must be careful to guard against this when using age and life cycle segmentation |
Stereotyping |
| This reason would NOT make segmentation less attractive to a company |
Concentrated Market |
| When a company serves the common needs of music and artists to 55 year old baby boomers it is called |
Target marketing |
Ch.18 LTI-MA 509
