Ch.7 Flashcards
divide the total market into smaller segments
segmentation
select the segment or segments to enter
targeting
differentiate the market offering to create superior customer value
differentiation
position the market offering in the minds of target customers
positioning
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
market segmentation
group of consumer who respond in a similar way to a given set of marketing efforts
market targetting
groups of customers, existing and potential, with common needs, values, and responsiveness to marketing variables
segments
consumers who look similar are likely to behave similarly (most common, but basic segmentation)
- age and life cycle
- gender
- income
demographic
consumers who live in close-proximity are likely to behave similarly
- countries or regions
- state or city
- counties
geographic
consumers who think similarly are likely to respond similarly to marketing activity
- attitudes, values, and lifestyles
- social class
- AIO (activities, interests, opinions)
psychographic
consumers who act similarly are likely to respond to marketing activity similarly
- loyalty status
- benefits
- usage occasion
- usage rate
behavioral
- measurable
- accessible
- substantial
- differentiable
- actionable
characteristics of effective segmentation
- undifferentiated (mass) marketing
- differentiated (segmented) marketing
- concentrated (niche) marketing
- micromarketing (local or individual) (ex: Groupon)
marketing targeting strategies
- grow the market by bringing new customers in
- grow your product/service share by take share from the competition
- increase share by increasing purchase frequency of existing customers
identifying opportunities for growth
firm decides to target several market segments and designs separate offers each
differentiated segmented marketing
firm goes after a large share of one or a few segments or niches
(can fine-tune its products, prices, and programs to the needs of carefully defined segments)
concentrated niche marketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments (effective approach for millenials)
micromarketing
- important
- distinctive
- superior
- communicable
- preemptive
- affordable
- profitable
unique selling proposition (USP)
- Must make a proposition to the consumer
- Must be unique
- Must be so strong that it can move new customers to product
3 USP components
promise of the value to a customer group, guides the developments of all marketing activities to engage with and reach target segments
positioning statement
- target market
- brand name
- frame of reference/competition
- value proposition
- support(s) for the value proposition
key elements of a positioning statement
The positioning statement is the mission and values (T/F)
False
graphical representation of how customers perceive brands in a given industry/product category
perceptual maps
Market _____ evaluates each market segment’s attractiveness and selects one or more segments to serve
targeting
