Chapter 8 Principles of Marketing

Product Differentiation
a positioning strategy that some firms use to distinguish their products
Target Market
a group of people or organizations who maintains a market mix for a group of people
business customers who consider numerous supplies before selecting one
Usage Rate Segmentation
former users, potential users, first time users, light users, heavy users
changing consumers perceptions of a brand in relations to competing brands
Multi-Segment Target Strategy
two or more segmenting market
The place a product/brand occupies a consumers mind
satisfying products and delivery requirements
when new sales of new product cut into sales of old product
Family Life Cycle
a series of stages occupied by “children”, marital status, and age
Market Segments
a subgroup of people sharing one or more characteristics that have similar product needs
Psychographic Segmentation
market segmentation on the basis of personality motives lifestyles and geo-demographics
Perceptual Mapping
displaying/graphing two or more dimensions of the location product brands or groups of products in customer minds
Concentrating Targeting Strategy
selecting one segment or a market
Segmentation Bases
characteristics of individuals, groups, or organizations
80/20 Principle
20% of the customers generate 80% of the demand
one segment of a market
Geographic Segmentation
segmenting markets by region of a country or market size, density and climate
Benefit Segmentation
grouping customers who will benefit from specific products
Geo-Demographic Segmentation
segmenting customers into lifestyle categories
Undifferentiated Targeting Mix
views market as ONE big market
developing specific marketing mix to influence customers overall perception of a brand, product line, or organization
Demographic Segmentation
age, gender, income, ethnic background, and family lifecycle

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