Kotler|Armstrong Principles of Marketing Chapter 7 Vocabulary – Flashcards
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Market segmentation
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Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behavior who might require separate products of marketing mixes
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Target marketing
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
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Market positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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Geographic segmentation
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Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods
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Demographic segmentation
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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
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Age and life-cycle segmentation
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Dividing a market into different age and life-cycle groups
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Gender segmentation
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Dividing a market into different groups based on gender
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Income segmentation
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Dividing a market into different income groups
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Psychological segmentation
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Dividing a market into different groups based on social class, lifestyle, or personality characteristics
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Behavioral segmentation
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Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
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Occasion segmentation
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Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
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Benefit segmentation
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Dividing the market into groups according to the different benefits that consumers seek from the product
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Intermarket segmentation
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Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
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Target market
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A set of buyers sharing common needs or characteristics that the company decides to serve
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Undifferentiated (mass) marketing
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A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
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Differentiated (segmented) marketing
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A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
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Concentrated (niche) marketing
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A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
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Micromarketing
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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
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Local marketing
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Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores
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Individual marketing
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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"
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Product position
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The way the product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products
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Competitive advantage
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An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
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Value proposition
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The full positioning of a brand—the full mix of benefits upon which it is positioned
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Positioning statement
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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)
