Marketing Terms Defined Essay

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MARKETING DEFINITIONS The first step in target marketing is market segmentation. Market segmentation is the process of dividing a potential market into distinct subsets and selecting one or more segments as a target market. It may be further defined as a specific group of customers on whom an organization focuses its marketing efforts. Behavioral segmentation variable is the grouping of customers in terms of occasions, loyalty, usage and benefits sought. It may be further defined as a way different consumers respond to, use, or know a product or service. An undifferentiated approach is a strategy in which an organization defines an entire market for a particular product as its target market, designs a single marketing mix and directs it at that market. Mass marketing is the practice of offering a single product and marketing mix to the whole potential market. Market positioning describes how target market segments or customers perceive the company’s offer in relation to competitive products or brands. Demographics are personal attributes of consumers such as age, gender, ethnicity and income which are objective and empirical, often used to classify consumers into distinct market segments. Psychographics is the intrinsic psychological, socio-cultural and behavioral characteristics that reflect how an individual is likely to act in relation to consumption decisions. Product positioning is the act of creating and maintaining a certain concept of a product in the consumers mind. Social classes are an open group of individuals with a similar social rank. This may be further defined as a relatively homogenous and enduring division in a society. A motive is an internal energizing force that directs a person’s behavior towards satisfying needs or achieving goals. Culture refers to values, knowledge, beliefs, customs, objects and
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