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market fragmentation
the creation of many consumer groups due to a diversity of distinct needs and wants in modern society TERM 2
target marketing strategy
DEFINITION 2 dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments TERM 3
segmentation
DEFINITION 3 the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics TERM 4
segmentation variables
DEFINITION 4 dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences TERM 5
Generation Y
DEFINITION 5 the group of consumers born between 1979 and 1994
demographics
statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure TERM 7
generational marketing
DEFINITION 7 marketing to members of a generation, who tend to share the same outlook and priorities TERM 8
Generation X
DEFINITION 8 the group of consumers born between 1965 and 1978 TERM 9
baby boomers
DEFINITION 9 the segment of people born between 1946 and 1964 TERM 10
metrosexual
DEFINITION 10 a straight, urban male who is keenly interested in fashion, home design, gourmet cooking, and personal care
behavioral segmentation
a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service TERM 17
80/20 rule
DEFINITION 17 a marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product's sales TERM 18
long tail
DEFINITION 18 a new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided that they sell enough different items TERM 19
usage occasions
DEFINITION 19 an indicator used in behavioral market segmentation based on when consumers use a product most TERM 20
targeting
DEFINITION 20 a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers
target market
the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts TERM 22
segment profile
DEFINITION 22 a description of the "typical" customer in a segment TERM 23
undifferentiated targeting strategy
DEFINITION 23 appealing to a spectrum of people TERM 24
differentiated targeting strategy
DEFINITION 24 developing one or more products for each of several distinct customer groups and making sure these offerings are kept in separate in the marketplace TERM 25
concentrated target strategy
DEFINITION 25 focusing a firm's effort on offering one or more products to a single segment
brand personality
a distinctive image that captures a good's or service's character and benefits TERM 32
perceptual map
DEFINITION 32 a technique to visually describe where brands are "located" in consumers' minds relative to competing brands TERM 33
customer relationship management (CRM)
DEFINITION 33 a systematic tracking of consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. This allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts TERM 34
touchpoint
DEFINITION 34 any point of direct interface between customers and a company (online, by phone or in person) TERM 35
share of a customer
DEFINITION 35 the percentage of an individual customer's purchase of a product that is a single brand
lifetime value of a customer
the potential profit a single customer's purchase of a firm's products generates over the customer's lifetime TERM 37
customer equity
DEFINITION 37 the financial value of a customer relationship throughout the lifetime of the relationship TERM 38
customer experience management (CEM)
DEFINITION 38 the concept of holistically aligning a firm's people, processes, systems, and strategies, to maximize the customer's experience with all aspects of your firm and its brand
