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