end–of–chapter resources

Reviewing the Key Terms

age and life-cycle segmentation: Dividing a market into different age and life-cycle groups.
behavioral segmentation: Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.
benefit segmentation: Dividing the market into groups according to the different benefits that consumers seek from the product.
competitive advantage: An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
concentrated (niche) marketing: A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
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.
differentiated (segmented) marketing: A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
gender segmentation: Dividing a market into different groups based on gender.
geographic segmentation: Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.
income segmentation: Dividing a market into different income groups.
individual marketing: 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."
intermarket segmentation: Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
local marketing: Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.
market positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
market segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
micromarketing: 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.
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.
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).
product position: The way the product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.
psychographic segmentation: Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
target market: A set of buyers sharing common needs or characteristics that the company decides to serve.
target marketing: The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
undifferentiated (mass) marketing: A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
value proposition: The full positioning of a brand—the full mix of benefits upon which it is positioned.