Market aggregation (undifferentiated marketing) Treating an entire market uniformly, making little or no attempt to differentiate marketing effort.
Product differentiation A marketing strategy that emphasizes distinctive product features without recognizing diversity of consumer needs.
Market segmentation Dividing a total market into several submarkets or segments, each of which is homogeneous in all significant aspects, for the purpose of selecting one or more target markets on which to concentrate marketing effort.
Concentration strategy Used by an organization that chooses to focus its marketing efforts on only one market segment.
Multisegment strategy Used by an organization that chooses to focus its marketing effort on two or more distinct segments.
Ultimate user An individual or organization that buys and/or uses products or services for their own personal consumption.
Industrial user An organization that buys products or services for use in their own businesses, or to make other products.
Demographic characteristics Statistical characteristics of a population often used to segment markets, such as age, sex, family life cycle, income, or education.
Usage rate A segmentation base that identifies customers on the basis of the frequency of use of a product.
Purchase occasion A segmentation base that identifies when they use the product.
User status A segmentation base that identifies customers on the basis of patterns of use, such as one-time or regular use.
Loyalty A segmentation base that identifies customers on the basis of purchase patterns of particular brands.
Stage of readiness A segmentation base that identifies customers on the basis of how ready a customer is to buy.
Psychological segmentation The use of attitudes, personality, motives, and lifestyle to identify customers.
Attitude A predisposition to behave in a certain way to a given stimuli.
Personality All the traits of a person that make him/her unique.
Motive A reason for behavior.
Lifestyle A pattern of attitudes, interests, and opinions held by a person.
Organizational markets A market consisting of those organizations who buy products or services for their businesses, for use in making other products, or for resale.
Standard industrial classification (SIC) A US government publication that classifies business firms by the main product or service provided.
Single-base segmentation strategy The use of a single base to segment markets.
Multi-base segmentation strategy The use of two or more bases to segment markets.
Clarity of identification The degree to which one can identify those inside and those outside the market segment.
Actual need Overt demand for existing goods or services.
Potential need A need that can be changed into perceived wants through such means as education or persuasion.
Effective demand Actual or potential needs existing along with purchasing power (income, savings, and credit) belonging to members of a market segment.
Economic accessibility Members of a market segment must be reachable and profitable.