Marketing and Customer Development Flashcards

What is market segmentation?

Answer: Dividing a target market into distinct subgroups with similar needs or characteristics

Market segmentation divides a broad market into smaller groups of consumers with shared characteristics so businesses can tailor their marketing effectively.

What does 'customer acquisition cost' (CAC) measure?

Answer: The total cost of sales and marketing divided by the number of new customers acquired

CAC is the average cost a business spends on sales and marketing to acquire each new customer.

What is a 'customer persona'?

Answer: A fictional representation of an ideal customer based on research and data

A customer persona (or buyer persona) is a semi-fictional profile representing your ideal customer, built from demographic data, behaviors, and motivations.

What is the 'customer journey'?

Answer: The complete experience a customer has from first awareness through purchase and beyond

The customer journey maps every touchpoint a customer has with a brand—from first awareness to purchase, use, and loyalty—to identify opportunities for improvement.

What does 'brand positioning' mean?

Answer: How a brand differentiates itself and occupies a distinct place in the minds of target customers

Brand positioning is the strategic process of defining how a brand should be perceived in relation to competitors in the minds of target customers.

What is a unique selling proposition (USP)?

Answer: A clear statement of what makes a product or business different from and better than competitors

A USP is the specific benefit that makes a business stand out from competitors and gives customers a compelling reason to choose it.