1market
people or organizations with needs or wants and the ability and willingness to buy
2market segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
3market segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
4segmentation bases (variables)
characteristics of individuals, groups, or organizations
5geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
6demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
7family life cycle
a series of stages determined by a combination of age, marital status, and the presence or absence of children
8psychographic segmentation
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
9geodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories
10benefit segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
11usage-rate segmentation
dividing a market by the amount of product bought or consumed
1280/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
13satisficers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
14optimizers
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
15target market
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
16undifferentiated targeting strategy
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
17concentrated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
18niche
one segment of a market
19multisegment targeting strategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
20Cannibalization
a situation that occurs when sales of a new product cut into sales of a firm's existing products
21positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
22position
the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
23product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
24perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
25Repositioning
changing consumers' perceptions of a brand in relation to competing brands