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Marketing > Chapter 4 - Customer-driven marketing strategy: creating value for target customers > Flashcards

Chapter 4 - Customer-driven marketing strategy: creating value for target customers Flashcards

1
Q

What is geographic segmentation?

A

Diving market into different geographical units

Nations, states, regions, counties, cities, neighbourhoods

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2
Q

What is demographic segmentation?

A

Segmentation based on variables such as:

  • gender
  • family size
  • family life cycle
  • income
  • occupation
  • education
  • religion
  • race
  • generation
  • nationality
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3
Q

Other types of segmentation?

A 
Gender
Income
User status
Usage rate
Loyalty status
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4
Q

What is psychographic segmentation?

A

Segmentation based on social class, lifestyle or personality characteristics

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5
Q

What is behavioural segmentation?

A

Segmentation based on:

  • consumer knowledge
  • attitudes
  • uses/responses to a product
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6
Q

What is occasion segmentation?

A

Segmentation according to occasions when buyers get the idea to buy, actually make their purchase or used the purchased item

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7
Q

What is benefit segmentation?

A

Segmentation according to different benefits that consumers seek from product

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8
Q

What is undifferentiated marketing? (Mass)

A

Market-coverage strategy

Firm decides to ignore market segment differences

Go after whole market with one offer

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9
Q

What is differentiated marketing? (Segmented)

A

Market coverage strategy

Firm decides to several secular market segments

Designs separate offers for each

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10
Q

What is concentrated marketing? (Niche)

A

Market coverage strategy

Firm goes after large share of one market or a few segments/niches

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11
Q

What are the advantages/benefits of undifferentiated marketing?

A

1) Generic markets
2) Little diversity of needs between defined market segments
3) Large global companies with strong offerings (Apple)
4) Small/emerging sub markets where development of multiple marketing mixes would not be viable

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12
Q

What are the advantages/benefits of differentiated marketing?

A

1) Ideal for companies wishing to grow
2) Large companies wishing to protect market share
3) Firms who have assets/capital that can be leveraged into other markets
4) Diversity of consumer needs across market segments

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13
Q

What are the advantages/benefits of concentrated marketing?

A

1) Small firms just starting out (limited resources and expertise)
2) Firms with limited set of capabilities and skills
3) When competitive advantage is their reputation and expertise within well-defined, small market segment
4) Organisation has had financial difficulties and needs to conserve resources

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14
Q

What is micro marketing?

A

Tailoring products and marketing programmes

to needs and wants of specific individuals and local customer segments

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15
Q

What is local marketing?

A

Tailoring brands and promotions to needs and wants of local customer segments

Cities, neighbourhoods, specific stores

(FatFace/White Stuff - Abersoch)

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16
Q

What is individual marketing?

A

Tailoring products and marketing programmes to needs and preferences of individual customers

One-to-one marketing/customised marketing/markets-of-one marketing

17
Q

What is production position?

A

The way the product is defined by consumers on important attributes

  • the place the product occupies in consumers’ minds relative to competing products
18
Q

What criteria should be satisfied by a brand difference to be worthy of going ahead?

A

Important
- delivers highly valued benefit to target buyers

Distinctive
- competitors do not offer same difference

Superior
- superior to other ways customers might be able to obtain same benefit

Communicable
- visible to buyers

Preemptive
- cannot be easily copied by competitors

Affordable

Profitable

19
Q

What is a positioning statement?

A

Statement that summarises company/brand positioning

20
Q

What is geodemographic positioning?

A

Grouping together small areas (postcodes) with similar

demographic profiles

21
Q

Who created the demographic categories?

A

NRS (National Readership Survey)

22
Q

What social status and occupation is social class A?

A

upper middle class

higher managerial, administrative or professional

23
Q

What social status and occupation is social class B?

A

middle class

intermediate managerial, administrative or professional

24
Q

What social status and occupation is social class C1?

A

lower middle class

supervisory or clerical, junior managerial, administrative or professional

25
Q

What social status and occupation is social class C2?

A

skilled working class

skilled manual workers

26
Q

What social status and occupation is social class D?

A

working class

semi and unskilled manual workers

27
Q

What social status and occupation is social class E?

A

those at lowest level of subsistence

state pensioners or widows (no other earner), casual or lowest grade workers

28
Q

What 6 factors should a marketing manager consider when selecting a target market segment?

A

1) Segment size and growth
2) Segment structural attractiveness
3) Company objectives and resources (actionability)
4) Risk
6) Accessibility

29
Q

What 4 structural factors may affect the long-term segment attractiveness?

A

1) Strong and aggressive competitors
2) Many actual/potential substitutes
3) Buyers with strong bargaining power
4) Powerful suppliers

30
Q

How might risk affect choosing a target market segment?

A

How badly will it go if things go badly?

31
Q

Alternative to the NRS ABC1 classification system?

A

ACORN

32
Q

What does ACORN stand for?

A

A Classification of Residential Neighbourhoods

33
Q

What are some criticisms of the ABC1 classifications?

A

1) Skilled and unskilled workers relates back to industrial nation - no longer applies to now service nation
2) C2 plumbers may earn more than C1 bank clerks or B teachers
3) ABC1 accounts for 55% of population, but unrealistic to go after such large market
4) Reflects more rigid class system
5) Focussed too heavily upon income

34
Q

What premise is ACORN based upon?

A

People who live near each other have similar consumer behaviour patterns

Marketing (15 decks)

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