Chapter 2 Flashcards
Strategic Marketing Plan
Planning framework for specific marketing activities
- Opportunity Analysis
- Competitive Analysis
- Target Market Selection
Market Segments
Identifiable groups of customers sharing similar wants, needs, that make them likely to respond in a similar fashion to a marketing program
Market Oppotunities
Areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively
Competitive Advantage
Something special a firm does/has that gives it an edge over competitors
Comparative Advantage
How firm compares to others in the market, and what does it offer that is good
Differential Advantage
When compare one business to another, one offers unique qualities that the other doesn’t
Distinctive Competencies
Something distinct your business has and is good at
Unique Selling Proposition (USP)
The way in which you go about selling your product, service, or idea
Target Marketing
Process of identifying needs of segments, selection segment(s) as target, and developing marketing program directed at each
Market Segmentation
Dividing market into distinct groups with common needs and will respond similarly to marketing action
Bases for Market Segmentation (4)
- Demographic - gender, age, race, income, marital status
- Geographic - region, city size, density
- Psychographic - personality, values/lifestyles
- Socioeconomic - income, education, occupation
Behavioristic Segmentation
Dividing consumers into groups based on usage, loyalties, or buying responses to a product
Benefit Segmentation
Grouping consumers based on attributes sought in a product
80-20 Rule
20% of buyers account for 80% of sales volume
Undifferentiated Marketing
Offering product to entire market
Differentiated Marketing
Different products to different markets
Concentrated Marketing
Specific product to a specific market
PRIZM Social Gorups
- Potential Rating Index for Zip Market
- Geographic and Demographic - Urban, Suburban, Second City, Town and Country (High $ to Low $)
Positioning
Fitting the product/service to one or more segments of the market in a way to set it meaningfully apart from the competition
Positioning Strategies (7)
- Attributes & Benefits
- Price/Quality
- Use/Application
- Product Class
- Product Users
- Competitors
- Cultural Symbols
Salient Attributes
Important to consumers and basis for making purchase decisions
Repositioning
Occurs between declining/stagnant stage of product life cycle because of anticipated opportunities in other market positions
Product Symbolism
What product/brand means to consumers and what they experience in purchasing and using it
Brand Identity
Combination of name, logo, symbols, design, packaging, and image of associations held by consumers
