Title: 5 Key Terms
Course: Principles of Marketing > Section: Chapter 5

Key Terms

ADAMS

the essential factors in effective market segmentation—accessible, differentiable, actionable, measurable, and substantial

affinity audience

a group of potential customers who have interests or hobbies in common

behavioral segmentation

method of grouping customers by their behavior patterns or interactions with a brand

buyer persona

semi-fictional representation of an organization’s ideal customers based on data and research

concentrated marketing

marketing segmentation strategy in which the firm concentrates its efforts and resources on serving one segment of the market

demographic segmentation

grouping customers and potential customers together by focusing on certain traits such as age, gender, income, occupation, and family status

determinant attributes

those attributes of a product or service that consumers rely upon when making a purchase decision

differentiated marketing

marketing strategy that involves creating marketing campaigns that appeal to two or more different target audiences, demographics, or marketing segments

differentiation positioning

product/service positioning based on the differentiating characteristics or qualities that make an organization better than its competitors in the mind of the target audience

firmographics

a grouping of B2B customers based on shared company attributes; includes five categories: industry, location, size, legal structure, and performance

geographic segmentation

marketing strategy used to target products or services at people who live in or shop at a particular location

head-to-head positioning

directly competing with competitors on similar product attributes in the same market

market segmentation

the process of dividing a broad consumer or business market into subgroups based on shared characteristics

micromarketing

marketing strategy used on a targeted group of customers in a niche market

multi-segment marketing

marketing strategy in which the firm targets several different market segments simultaneously

needs-based segmentation

dividing the market up into smaller groups of people who have approximately the same needs

perceptual map

visual depiction of how target customers view and feel about a given brand or product

positioning statement

short description of an organization’s target market(s) and the product(s) provided to them

product positioning

the process of deciding and communicating how an organization wants its market to think and feel about a product or service

psychographic segmentation

dividing consumers into subgroups based on shared psychological characteristics, including beliefs, motivations, and priorities

STP model

three-step marketing framework in which an organization segments the market, selects target market(s), and positions its products or services

target market

group of people with some shared characteristics that a company has identified as potential customers for its products

technographic segmentation

organizing B2B prospects by their technology ownership and usage

undifferentiated marketing

also called mass marketing, a strategy that entails creating one message for an entire audience

value-based segmentation

evaluating groups of customers in terms of the revenue they generate and the costs of establishing and maintaining relationships with them