3 Segmentation, Targeting, and Positioning Free Online FlashCards

What are the three decisions in the STP process?

Segmentation groups customers with meaningful differences; targeting chooses which groups to serve; positioning shapes how the offering is understood relative to alternatives.

What is market segmentation?

Market segmentation divides a broad market into smaller groups whose members share relevant needs, characteristics, or behaviors and may respond similarly to marketing.

What does geographic segmentation use to group customers?

Geographic segmentation groups customers by where they live, such as country, region, climate, or population density.

Which traits are used in demographic segmentation?

Demographic segmentation groups customers by measurable traits such as age, income, household size, occupation, or life stage.

What characterizes psychographic segmentation?

Psychographic segmentation groups customers by lifestyles, interests, values, or attitudes.

What behaviors can marketers use for segmentation?

Behavioral segmentation groups customers by product knowledge, usage, purchase occasions, loyalty, or benefits sought.

What five criteria make a market segment useful (ADAMS)?

ADAMS means Accessible, Differentiable, Actionable, Measurable, and Substantial: a segment should be reachable, distinct, practical to serve, estimable, and valuable enough to justify serving.

What should a firm assess when selecting target markets?

Estimate each segment’s size and growth, likely profitability and competition, and fit with the firm’s objectives, capabilities, and resources.

What is undifferentiated (mass) marketing?

Undifferentiated, or mass, marketing serves a broad market with one basic offer and marketing approach.

What is differentiated marketing?

Differentiated marketing serves several segments with tailored offers or marketing programs.

What is concentrated (niche) marketing?

Concentrated, or niche, marketing focuses on one segment or a small number of segments.

What is micromarketing?

Micromarketing tailors offerings to local markets or individuals, such as adapting a retailer’s selection to a neighborhood or personalizing online recommendations.