Chapter 7 Denitions

Dene the major steps of designing a customer driven marketing strategy: market segmentation, targeting, differentiation, and positioning Bases of Segmentation: The criteria for dividing consumers into identiable groups. The four main bases of segmentation are geography, demographics, psychographics, and behaviour. Geographic Segmentation: Dividing a market into different geographical units such as nations, regions, provinces, counties, cities, or neighbourhoods. Demographic Segmentation: Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. 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. Psychographic Segmentation: Describing a market segment according to shared attitudes and behaviours, lifestyles, and personality. Behavioural Segmentation: Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product. Benet Segmentation: Dividing the market into groups according to the different benets that consumers seek from the product. Income Segmentation: Dividing a market into different income groups. 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. Intermarket Segmentation: Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries. List and discuss the major approaches for segmenting consumer and business markets Local Marketing: Tailoring brands and promotions to the needs and wants of local customer groups: cities, neighbourhoods, and even specic stores. Collaborative Filtering: The method of making automatic predictions about the interests of an individual user by collecting

predictions about the interests of an individual user by collecting taste information from many users. Differentiated Marketing: A market-coverage strategy in which a rm decides to target several market segments and designs separate offers for each. Micromarketing: The practice of tailoring products and marketing programs to the needs and wants of specic individuals and local customer groups - includes local marketing and individual marketing. Undifferentiated (Mass) Marketing: A market-coverage strategy in which a rm decides to ignore market segment differences and go after the whole market with one offer. Mass Customization: The process of customizing products on a mass-market level. Standardized Marketing Mix: An international marketing strategy for using basically the same product, advertising, distribution channels, and other elements of the marketing mix in all the company's international markets. Niche Marketing: A market-coverage strategy in which a rm goes after a very narrowly dened market segment. Individual Marketing: Tailoring products and marketing programs to the needs and preferences of individual customers; also labelled "markets-of-one marketing," "customized marketing," and "one-toone marketing." Target Market: A set of buyers sharing common needs or characteristics that the company decides to serve. Adapted Marketing Mix: An international marketing strategy for adjusting the marketing mix elements to each international target market, bearing more costs but hoping for a larger market share and return. Explain how companies identify attractive market segments and choose a target marketing strategy Value Proposition: The full positioning of a brand: the full mix of benets on which it is positioned. Competitive Advantage: An advantage over competitors gained by offering greater value, either through lower prices or by providing more benets that justify higher prices. Unique Selling Proposition: The one thing that makes a company's product or offer unique in the marketplace. Positioning: The way the product is dened by consumers on important attributes; the place the product occupies in consumers' minds relative to competing products. 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).

brand positioning - it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).