CH. 11 - unique marketing issues Flashcards
- Segment the market
- Selecting a target market
- Crafting a unique positioning strategy
3 step process of selecting a market and establishing a position
What customers in my market are similar to the same product or service and will appeal to them?
- study a firm’s industry and determine the different target markets in that industry.
- ways to segment markets: geography, demographics, physchographics, behavioral, and product.
Segmenting the Market
Which specific group or customers have I decided to target?
- once market has been segmented, a target market must be chosen.
- market must be sufficiently attractive and firm must have the capability to serve it.
Seleting a target market
What position will my firm occupy in the minds of my customers or potential ones that will differentiate it from all of my competitors?
- after firm has position and primary points of differentiatioins, a helpful technique is to develop a product attribute map.
- Product attribute map: illustrates a firm’s positioning strategy relative to its rivals.
- Develop tagline to reinforce the position staked out in the market, it is a phrase that is used consistently in a firm’s literature and becomes associated with the company.
Crafting a unique positioning strategy
- Establishing a brand
- Brand Management
- Power of a strong brand
50-75% comes from brands
Branding
- Brand: set of attributes -positive or negative- that people associate with a company.
- Customer loyalty a company creates is through its brand and is one of its most valuable assets.
- How do I establish my brand? a philosophical (understand need and add value for customers) or more practical level.
- Firm’s name, logo, website design, etc are part of its brand.
Establishing a brand
Firms monitor the integrity of their brand through a program called
Brand Management
- Strong brand can be a very powerful asset for a firm.
- Brand allows a company to charge a price for its products that is consistent with its image.
Power of a strong brand
- Product
- Price
- Promotion
- Place (or distribution)
The marketing mix
The Four Ps for New Ventures
- Good or service a firm offers to its target market
- Most important attribute of a product adds value in the mind of target customers
- Important distinction should be made between a firm’s core product and the *actual product. *
- initial rollout is one of the most critical times.
- firms face uknown challenges and it is taking a leap of faith for the first customers to buy their products. (reference account)
Product
- Amount of money consumers pay to buy a product.
- entrepreneurs use one of two methods to set the price for their products.
Price
- Cost-Based Pricing: the list price is determined by adding a markup percentage to a product’s cost.
- Value-Based Pricing: the list price is determined by *estimating what consumers are willing to pay for a product. * (best way)
Two methods of setting the price of a product
- Promotion: the activities the firm takes to communicate the merits of its product to its target market.
- Advertising: making people aware of a product or service in hopes of persuading them to buy it.
3 goals: inform, persuade, reming
Promotion
Step 1: identify the purpose of the ad
Step 2: determine the target audience
Step 3: select a medium
Step 4: create the ad
Step 5: select a place and time for the ad to appear
Step 6: fulfill expectations
Steps involved to put together an ad
Adwords: allow advertisers to buy keywords on the google page
Adsense: allow advertisers to buy ads that will be shown on other websites instead of google’s home page.
Google AdWords and AdSense Program
