Principles of Marketing Exam 2 Terms with Definitions

Market Segmentation - Dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. Market Targeting - The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Differentiation - Actually differentiating the market offering to create superior customer to create superior customer value. Positioning - Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of the target consumer. Geographic Segmentation - Dividing a market into different geographical units such as nations, states, regions, counties. Cities or neighborhoods. Demographic Segmentation - Dividing the market into groups based on variables such as age, gender, family size, family life cycles, income, occupation, education, religion, race, generation, and nationality. 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. Income Segmentation - Dividing a market into different income groups. Psychographic Segmentation - Dividing a market into different groups based on social class, lifestyle, or personality characteristics. 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. Benefit Segmentation - Dividing the market into groups according to the different benefits that consumer seek from the product. Intermarket Segmentation - Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries. Target Market - A set of buyers sharing common needs or characteristics that they company decides to serve. Undifferentiated Marketing - A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Differentiated Marketing - A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. Concentrated Marketing - A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.