Basic Concepts, Segmentation, Targeting, Positioning, Global Marketing Flashcards
What are the main segmentation variables?
Geographic: nations, states, regions, counties, cities, or neighbourhoods
Demographic: age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class
Psychographic: psychological/personality traits, lifestyle, values (innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors)
Behavioural: needs and benefits, decision roles, user and usage, loyalty status, attitude
What are the requirements for effective segmentation? In accordance to MASDA.
Segments should be:
* Measurable: size and purchasing power
* Accessible
* Substantial: large and profitable enough to serve; homogenous group with tailored marketing program
* Differentiable
* Actionable: effective programs can be formulated
What are segmentation variables for B2B markets?
Demographic: industry, company size, location
Operating variables: User or no user status, Technology, Customer Capabilities
Purchasing approaches: purchasing-function organisaiton, power structure
Define STP.
Segmentation: identify customer segments based on demo, psycho, geographic and behavioural criteria
Targeting: select target segments
undifferentiated, differentiated, focused or customised marketing
Positioning: identify positioning concept within each target segment
Define marketing and its importance.
- Acceptance of new products
- Inspire enhancement in existing products and services
- Building strong brands and a loyal customer base
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.
What are steps in the marketing process.
- Understand the marketplace and customer needs.
- Design a value-driven strategy
- Construct an integrated marketing program that delivers superior value.
- Engage customer, build profitable relationship and create customer delight.
Define the core marketing concepts: needs, wanrs, demands.
Needs = basic human requirements, e.g., air, food, water, clothing, shelter
Strong needs for recreation, education and entertainments
Wants = needs become wants when they are directed to specific objects that might satisfy the need
Demands = wants for specific products backed by the ability to pay
- Needs preexist – markets shape wants (along with other societal factors)
- Type of needs: stated needs, real needs, unstated needs, delight needs, secret needs
Define the 4 Ps.
Product: Design, technology, usefulness, value, packaging, quality, branding, warranties, accessoires
Price: skimming, penetration, psychological, loss leader, cost-plus, etc.
Place: retail, wholesaler, mail, internet, direct sales, etc.
Promotion: offers, advertising, endorsements, user trials, gifts, competition, etc.
Define the additional 3 Ps in marketing.
People: employees, management, company culture, customer service
Processes: creativity, discipline, and structure brought to marketing management; especially for services
Physical evidence/environment: smart, interface, facilities, comfort
What is the value chain?
= tool for identifying key activities that create value and costs in specific business
Maximising value exploration by
identifying new customer benefits
company competence space: utilising core competencies from its business domains and managing business partner
becoming sufficient in CRM, internal resource management, and business partnership management
What are core competencies?
1) source of competitive advantage and makes a significant contribution to perceived customer benefits
2) has implications in a wide variety of markets
3) is difficult for competitors to imitate
Explain the VALS framework.
main diemnasion: consumer motivation adn consumer resources
Primary motivations: ideals, achievement, self-expression
* Those motivated by ideals are primary guided by knowledge and principles
* Those motivated by achievement look for products and services that demonstrate success to their peers
* Those whose motivation is self-expression desire social or physical activity, variety and risk
Explain the VALS framework.
main diemnasion: consumer motivation adn consumer resources
Primary motivations: ideals, achievement, self-expression
* Those motivated by ideals are primary guided by knowledge and principles
* Those motivated by achievement look for products and services that demonstrate success to their peers
* Those whose motivation is self-expression desire social or physical activity, variety and risk
How can companies establish an effective positioning in the market?
- Study competitors as well as actual and potential customers
- Identify competitors’ strategies, objectives, strengths, and weaknesses
Developing a positioning requires the determination of a frame of reference
– by identifying the target market and the resulting nature of the competition
– and the optimal points-of-parity and points-of-difference brand associations
What does an internal analysis in positioning require?
Analysis of resources, capabilities, and core competences
Resources = all assets, organisational processes, firm attributes, knowledge etc. that enable the firm to improve its efficiencies and effectiveness
Capabilities= complex bundle of resources through which comapneis achieve superior coordination of functional activities and processes to provide valuable products/services
Core competencies = combination of capabilities that critically underpin the firm’s competitive advantage
