Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

MP Chapter 8

Market Segmentation, Targeting, and Positioning

TermDefinition
market segmentation Aggregates potential buyers into groups that have common needs and will respond similarly to a marketing action.
market segments The relatively homogeneous groups of prospective buyers that result from the market segmentation process.
product differentiation The strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products.
market-product grid A framework relating the segments of a market to products or marketing actions of the firm.
usage rate The quantity consumed or the number of store visits during a specific period.
80/20 rule The idea that 80 percent of a firm's sales are obtained from 20 percent of its customers.
product positioning The place a product occupies in consumers' minds based on important features relative to the competitive products.
product repositioning Changing the place a product occupies in a consumers' minds relative to competitive products.
perceptual map A means of displaying the position of products or brands in consumers' minds.
one product, multiple market segments Avoids the extra costs of developing and producing more versions of the product. Incremental costs of taking the product into a new market segment are normally a separate campaign.
multiple products, multiple market segments Ability to meet multiple customers' needs, but can if it doesn't meet the needs then it can just end up reducing quality and raise prices.
build-to-order (BTO) Manufacturing a product only when there is an order from the customer. The system trims work-in-progress inventories and shorten delivery times to customers.
mass customization Tailoring goods or services to the tastes of the individual customers on a high-volume scale.
organizational synergy The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.
cannibalization When the new products or new chain simply stealing customers from the older, existing ones.
5 steps to segment the market and select the target market 1) Group potential buyers into segments. 2) Group products to be sold into categories. 3) Develop a market-product grid and estimate the size of the markets. 4) Select target markets. 5) Take marketing actions to reach target markets.
step 1: group potential buyers into segments (5 essential criteria) -simplicity and cost-effectiveness of assigning potential buyers to segments -potential for increased profit -similar needs of potential buyers within segment -difference of needs of buyers segments -potential of marketing action to reach a segment
ways to segment consumer markets 1) geographic segmentation 2) demographic segmentation 3) psychographic segmentation 4) behavioral segmentation
step 2: group products to be sold into categories Can possibly sell products as a package deal
step 3: develop a market-product grid and estimate the size of the markets definition of market-product grid
step 4: select target markets (5 criteria) 1) market size 2) expected growth 3) competitive position 4) cost of reaching the segment 5) compatibility with the organization's objectives and resources
step 5:
Created by: mariwalsh
Popular Marketing sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards