The process of dividing large, diverse markets into smaller submarkets that are more alike and need similar products or marketing mixes.
What is a Market Segment?
A submarket or group of customers with similar needs and preferences.
How is market segmentation used?
To find out what kinds of customer groups exist w/in the total market for a product, then determine which market segments to pursue and how to appeal to those segments.
What is Single Variable Segmentation?
Uses only 1 characteristic, like income, to segment a market.
What is Multivariable Segmentation?
Uses a combo of characteristics, like income and gender, to segment a market.
What is Consumer Market?
A market that consists of ppl who buy product for personal/family use.
What are Organizational Markets?
Markets that consist of individuals or formal organizations that buy product for business purposes.
A method of dividing the total market for a product based on the needs & desires of populations in different jurisdictions or physical locations.
Protection against insurable risks of assets and lives of target populations such as micro entrepreneurs, small farmers, the landless, women, and low income earners through formal, semi-formal or informal institutions.
Method of dividing total consumer market for a product or svc based on multiple characteristics that describe consumers' attitudes, beliefs, opinions, values, lifestyles, activities, and interests.
A model created by a co's marketing staff used to represent a particular demographic portion of a market segment to better understand the habits, needs, and motivations of consumers in that segment.
A method of dividing the total market for a product according to consumers' behavior toward a product or company.
A type of behavioristic segmentation in which the benefits that prospective consumers seek are used to segment markets.
North American Industry Classification System (NAICS)
The official system used in North America to categorize businesses according to the type of economic or business activity in which they are involved.
A group made up of the employees of one company.
Multiple Employer Group
A group consisting of the employees of (1) 2 or more employers in the same industry, (2) or more labor unions, or (3) one or more employers and one or more labor unions.
Group consisting of lending institutions, such as banks, credit unions, savings & loan associations, finance companies, retail merchants, and credit card companies, and their debtors.
A group formed when individuals with common needs, interests, and characteristics communicate regularly with each other.
The process co's use to evaluate each identified market segment and then select one or more segments as the focus for their marketing efforts.
A target mktng strategy that involves defining the total market for a product as the target market and designing a single marketing mix directed toward the entire market. AKA mass marketing.
A target marketing strategy that involves focusing all of a co's marketing resources on satisfying the needs of one segment of the total market for a particular type of product.
A form of concentrated marketing where co's target small narrowly defined subgroups w/in a segment that attract only one or a few competitors.
A target marketing strategy that aims to satisfy the needs of a large part of the total market for a particular type of product by offering a number of products and marketing mixes designed to appeal to different segments of the total market.
One-to -one Marketing
A type of target marketing strategy where the marketing mix is customized for each individual consumer or consumers in a specific location. AKA micromarketing.
A type of target marketing strategy where the marketing mix is aimed at a particular group of customers with similar characteristics, needs, or past buying behavior and personalized to some extent. AKA one-to-some marketing.
Negotiated Trusteeship (Taft-Hartley Group)
A multiple employer group that results form a collective-bargaining agreement b/t one of more unions and employers of union members. AKA a Taft-Hartley Group.
Voluntary trade association
A multiple employer group that consists of individual employers that work in similar industries and have common business interests.
Multiple-Employer Welfare Arrangement (MEWA)
A multiple employer group formed when small employers band together to offer group insurance and other benefits to their employees.