Ch 6 Flashcards
Customer Driven Marketing Strategy
A company must identify the parts of the market it can serve best and most profitably
Market Segmentation
Dividing the market into smaller groups with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes
Types of Market Segmentation (5)
1) Geographic Segmentation
2) Demographic Segmentation
3) Psychographic Segmentation
4) Behavioral Segmentation
5) Multiple Segmentation Bases
Geographic Segmentation
Regions, states, cities, neighborhoods
Demographic Segmentation
Age, gender, family size, income, occupation, education, religion, race, generation, nationality
Psychographic Segmentation
Groups based on social class, lifestyle, personality characteristics, self-values, self-concept
Behavioral Segmentation
Occasion: “Seasonal”
Benefits: People who want the benefits that the product creates
Usage Rate: Light, Medium, Heavy
Loyalty: Most to Least loyal
Segment Attractiveness
- Identifiable
- Reachable
- Substantial & Profitable
- Responsive
Market Targeting
Evaluating each market segment attractiveness & select 1+ market segment to enter
Types of Market Targeting
1) Undifferentiated (Mass) Marketing
2) Differentiated (Segmented) Marketing
3) Concentrated (Niche) Marketing
4) MicroMarketing
Differentiation
Differentiating the firm’s market offering to create superior customer value
Positioning
Arranging for a product to occupy a clear, distinctive & desirable place relative to competing products in the minds of target customers
Value Proposition
On how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
Types of Value Propositions
- More for more
- More for the same
- Same for less
- Less for more
