Chapter 3 Terms New Flashcards
s typically done first including an examination of overall
market characteristics, followed by an in-depth exploration of customer needs and
related customer characteristics and behaviors
Customer analysis
allows you to determine the needs of your customers, the types of messaging they respond well to, and why they are or aren’t purchasing your
product. Armed with this information, you can make the changes necessary to
increase growth.
Customer Analysis
tries to establish the attractiveness of the overall market and potential segments within. Specifically,
Market analysis
involves answering a few questions.
CUSTOMER NEEDS ANALYSIS
Also referred to as a competitive analysis, is the process of identifying competitors in your industry and researching their different marketing strategies. You can use this information as a point of comparison to identify your company’s strengths and weaknesses relative to each competitor.
Competitor analysis
examines the competitors’ current positioning, strengths and
weaknesses to spot opportunities for the firm.
Competitor analysis
It also examines the organization’s limitations or constraints, and how its values
shape the way it does business.
Company analysis
In an internal corporate analysis, the objective is to identify the organization’s
strengths in terms of its current brand positioning and image, and the resources
the organization has (financial, human labor and know-how, and physical
assets).
Company analysis
The _______ process is a three-step
approach to marketing that helps
businesses understand their target
market, develop a unique value
proposition, and position their products
or services in a way that is relevant to
that market.
Segmentation, Targeting, Positioning
dividing the population of
possible customers into groups. A market
segment is composed of a group of buyers
who share common characteristics, needs,
purchasing behavior, and/or consumption
patterns.
Segmentation
This involves dividing the
market into groups based on location. For example, a
business might segment its market by country, region,
or city.
Geographic segmentation:
This involves dividing
the market into groups based on factors such as age,
gender, income, and education.
Demographic segmentation
: This involves dividing
the market into groups based on factors such as
personality, lifestyle, and values.
Psychographic segmentation
: This involves dividing the
market into groups based on factors such as purchase
behavior, usage rate, and loyalty status.
Behavioral segmentation
is
the process of segmenting your
customers into groups based on
their shared experience of a
particular problem or need.
Needs-based segmentation
allows businesses to better
understand the unique needs and
preferences of different groups of
customers, and tailor their
products and marketing strategies
accordingly.
Needs based Segmentation
Focus on
Organization’s characteristics such as
industry size and location.
Groups ideal companies based on:
Industry Ownership and legal status
(public, private, LLC, etc.)Number of
employees,Geographics ,Annual revenue
Firmographic segmentation
are important to the consumer, but may not be
important for the buying decisions (e.g., safety is important, but all airlines a
traveler considers are seen as safe). If that is the case, such an attribute
should not be used as a basis for segmentation.
Important attributes
often are further down on the list of service
characteristics important to customers. However, they are attributes where
customers see significant differences between competing alternatives (e.g.,
convenience of departure times, or quality of in-flight service), and will
determine the final purchase. Differences between customers regarding
determinant attributes are therefore crucial for segmentation.
Determinant attributes
Is the practice of narrowing
down a target market into specific
segments of consumers with common
attributes and directing more
personalized marketing efforts toward
them.
Targeting
In marketing, focus means providing a
relatively narrow product mix for a particular
target segment. Nearly all successful service
firms apply this concept. They identify the
strategically important elements in their
service operations and concentrate their
resources on them. The extent of a company’s
focus can be described along two dimensions:
market focus and service focus.
Targeting service markets
is the extent to which a firm serves few or many markets, while Service focus describes the extent to which a firm offers few or many services. These two dimensions define the four basic focus strategies
Targeting service markets
provides a limited range of
services (perhaps just a single core product)
to a narrow and specific market segment.
Example: Private jet charter services may
focus on the high-net-worth individuals or
corporations.
Hospital that performs only a specific
service or expertise.i.e. Lung and Heart
Center
Developing recognized expertise in a well-
defined niche may provide protection against
would-be competitors and allows a firm to
charge premium prices.
Fully-focused
In a market-focused
strategy, a company offers a wide range
of services to a narrowly defined target segment.
Example: for women or men only,
residents of Cavite, rich people.
Market-focuses
Values and delivers high quality, professional,
responsive and innovative service to all customer
Example: Starbucks coffee shops follow this strategy, serving a broad customer base with a largely standardized product.
Service focused
firms offer a narrow range of services to a fairly broad market.
Service focused`
Many service providers fall into
the unfocused category, because they try to
serve broad markets and provide a wide range
of services. The danger with this strategy is
that unfocused firms often are “jacks of all
trades and masters of none”.
Unfocused
— the unique place that the firm and/or its service offerings occupy in the minds of its consumers.
Before a firm can create a unique position for its service, it must first differentiate the service from that of its
competitors.
Hence, differentiation is
the first step towards creating a
unique positioning for a service
“_____________ is not what you do to a product. Positioning is what you do to the mind of the prospect.
That is, you position the product in the mind of the
prospect.”
Positioning
is concerned with creating, communicating, and maintaining distinctive differences that will be noticed and valued by those customers the firm would most like to develop a long-term relationship with .
Positioning strategy
also known as a market or brand positioning strategy—is a type of marketing strategy that focuses on distinguishing a brand from its competitors.
The goal of a positioning strategy is to influence consumer perception by effectively communicating a brand’s competitive advantage.
Positioning strategy
A reliable differentiation strategy is to link your product with a competitive price point.
Product Price
What is your product’s unique value proposition?
Highlight the features and benefits of your product as uniquely equipped to meet the
specific needs of your customer base.
Unique value proposition:
: Customers are accustomed to paying more for higher product
quality, whether real or perceived.
This strategy is especially successful in the luxury
market, where high quality, limited availability, and famous brand ambassadors influence purchase decisions.
Product quality
This strategy involves directly comparing your product
with your competitors’ to show how yours is better or unique.
After doing the research and deciding on a positioning strategy, it is important to
communicate this to key stakeholders internally in a brand positioning statement and to work with marketing teams to create messaging accordingly.
Competitive positioning:
