chapter 3 marketing Flashcards
depth strategy
serving one segment welll
2 segmenting approaches
managerial = top down
customer based = bottom up
- begin with understanding marketplace then info on customer perspective
what does 80 20 mean
80% of sales come frmo 20% of customers
behavior
media, loyalty, frequency, afficilations
evaluating segmentation schemes: fit with corporate goals?
- consider firm’s goals and image
evaluating segmentation schemes: data to identify?
- census
- VALS and prizm
- specific survey?
order of groups of customers
mass marketing
marketing segmentation
one - to - one marketing
geographic
division of an overall market into homogeneous groups based on their locations
segmentening B2B
type of firm
attitudes
geographic
demographic
evaluating segmentation schemes: actionable?
- focus on right criteria
- how to put it into action
psychological
division of a population into groups having similar attitudes, values, and lifestyles
evaluating segmentation schemes: profitability?
- dont segment 2 narrpw
size matters but so does frequency and depth of purchase - segment stability
- growth potential
VALS
psychographic segmentation tool
- identification of values attitudes and lifestyle traits consumers exhibit. segments based on summarization
segments become more ____ as they increase in size
heterogenous
demographic
age, gender, income, martial status
differences between B2C and B2B segemnting
- data souces different
- number of businesses who comprise customer base are fewer than B2C
- more knowledge about business customers
niche marketing
the company strategically focuses, taregting a smaller market with particular needs that the company can servce well
tailored strategy
customizing for segments
- targeting coke to youth or diet coke to parentals
cluster analysis
- survey customers
- if variability in response : segment on that variable
- if no variability : do not segment on that variable
evaluating segmentation schemes: databases to access segments?
-databases give access to the specific people within chosen segments
breadth strategy
reaching multiple segments
- ex computers made ultra compatible so they can be used as desk top or laptop
bases for segmenting in B2C
geographic
attitudes
behavior
demographic
it costs ___ to q
it costs 6 times more to acquire a new customer compared with retaining a loyal customer
