Ch. 9 Flashcards
Product differentiation strategy
Firm uses marketing mix actions, such as product features and advertising, to help consumers perceive the product as different and better
When should you jot try and segment a market?
When a business goes through the trouble and expense of segmenting its market when it expects that extra effort will increase sales.
Mass customization
Tailoring products or services to the tastes of individual customers on a high volume scale
Cannibalization
Are new products or new chain simply stealing customers and sales from older existing ones.
Ways in segmenting markets: geographic
Ex: Campbell’s found that spicy nacho cheese isnt like in the east, but was loved in the west… Now is only sold in west market.
Ways in segmenting markets: Demographic
Ex: most US households have more than one person; so Campbell’s packages meals with 2 servings for this segment
Ways in segmenting markets: psychographic
People of similar background live near each other and but similar products
Ways in segmenting markets: Behavioral
Understanding what features of their product are important to that market segment
Ways in segmenting markets: Behavioral part two
Amount consumed by different markets
Positioning statement
Statement that converts the ideas of marketers into a statement
Perceptual map
Identify important attributes
Discover how they see competing products
Discover how they see the product
Reposition to make it more appealing
Market segmentation
Involves aggregating prospective buyers into groups that
- Have common needs
- respond similarly to marketing action
