Chapter 5 - Market Segmenting, Targeting, and Positioning

Question 1

Mass marketing

Answer 1

Selling same price and using the same promotion and place channels to everybody

Popcorn approach, blast out as many messages as possible

Question 2

Benefits of segementing and targeting markets

Answer 2

1. Avoid head on competition with other firms with same customer segements
2. Develop new offerings and expand brands and product lines
3. Remarket older, less-profitable products/brands
4. Identify early adopters
5. Redistribute money to your most profitable customers
6. Retain at-risk customers

Question 3

Steps in one-to-one marketing

Answer 3

1. Metrics
2. Identify customers
3. Differentiate customers
4. Interact, target best customers
5. Customize products to meet their needs

Question 4

1to1 Step 1: Metrics

Answer 4

Determine how to measure consequences of your effort (satisfaction ratings, revenue, number of products sold)

Question 5

1to1 Step 2: Identify your customers

Answer 5

Gather info about current customers such as buying patterns, like and dislikes. Legally gather personal info to contact

Question 6

1to1 Step 3: Differentiate Customers

Answer 6

Determine who your best customers are

Question 7

1to1 Step 4: Interact, target best customers

Answer 7

Use social media to talk to customers about interests

Question 8

1to1 Step 5: Customize products to meet their needs

Answer 8

Customize promotional messages and products to satisfy customers

Question 9

Segmentation Process

Answer 9

1. Needs-based segmentation
2. Segment identification
3. Segement attractiveness
4. Segment profitability
5. Segment positioning
6. Marketing-mix strategy