Chapter 5 Flashcards
What are the major steps in designing a customer-driven marketing strategy?
Market segmentation, targeting, differentiation, positioning
In customer-driven marketing strategy, what is the meaning of segmentation?
Divide the total market into smaller segments
In customer-driven marketing strategy, what is the meaning of targeting?
Select the segment or segments to enter
In customer-driven marketing strategy, what is the meaning of differentiation?
Differentiate the market offering to create superior customer value
In customer-driven marketing strategy, what is the meaning of positioning?
Position the market offering in the minds of target customers
What is market segmentation?
Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
What question does market segmentation address?
What customers will we serve?
Name four general topics for segmenting consumer markets.
Geographic segmentation, Demographic segmentation, Psychographic segmentation, Behavioral segmentation.
What is geographic segmentation?
Dividing a market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.
What are some variables used in demographic segmentation?
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation.
What is demographic segmentation?
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
What is psychographic segmentation?
Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
What is behavioral segmentation?
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Name two examples of behavioral segmentation.
Occasion segmentation, Benefit segmentation.
What are three factors to evaluate market segments?
Segment size and growth, Segment structural attractiveness, Company objectives and resources
What is important to consider regarding segment size and growth when evaluating market segments?
Select the right size and growth characteristics.
What are some aspects of segment structural attractiveness to consider when evaluating market segments?
Avoid strong and aggressive competitors, new entrants, substitute products, power of buyers relative to sellers, and powerful suppliers.
What is important to consider regarding company objectives and resources when evaluating market segments?
Match with company’s long run objective.
What is a target market?
A set of buyers who share common needs or characteristics that the company decides to serve.
What are the four tasks in differentiation and positioning?
Identifying a set of possible competitive advantages to build a position, Choosing the right competitive advantages, Selecting an overall positioning strategy, Communicating and delivering the chosen position to the market
What is competitive advantage?
An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.
Name five possible competitive advantages to differentiate along.
Product, Services, Channels, People, Image
What is a positioning strategy?
A strategy designed to serve the needs and wants of a company’s target markets and make the company special to its target consumers.
What is a value proposition?
The full mix of benefits on which a brand is differentiated and positioned.
