Chapter 6 Flashcards
Market segmentation
Dividing and a market into distinct groups of customers with common wants and needs. Similar consumption, behaviour , attitudes, and profiles.
Consumer market
Goods, services, and ideas for personal use.
Mostly concerns us as individuals.
Business market
Products run a business or be used as a component in another good or service.
Majority of money is with the business market.
Ex. MRU buys chairs, desks, d2l services, etc.
Types of market segmentation
Mass marketing
segment marketing
niche marketing
individualized marketing
Mass marketing
Utilities. Ex. natural gas
Segment marketing
Clothing, vehicles
Most common
Niche marketing
Vegan food, gluten free good - specific diets
Non alcoholic drinks , etc
Individualized marketing
Customization . Meets an individuals specific needs.
Ex. T-shirt printing , Nikes design your own shoe
Geographics
Where they live, work
Demographics
Census type data
Age, gender, neighborhood type, home type, etc
Psychographics
Values, attitudes, interests, hobbies, lifestyle
Behaviouristics
Purchase occasion
how does the target market use and interact with the product
Personas
Character descriptions of a brands typical customer.
Create a fake person who is the ideal prototype consumer
About the problems and challenges people face. Not about the demographics
Target market
Specific group of existing and potential consumers which marketer direct their marketing efforts
Target market profile
Description of the target market that contains the geographics, demographics, psychographics, and behaviouristics
Segmentation variables in consumer markets
Geographics
Demographics
Psychographics
Behaviouristics
Steps in Market Segmentation
- Identify consumers needs and common characteristics in the market
- Cluster common consumer variables to create meaningful market segments
- Estimate the size and feasibility of each segment
- Identify the segment(s) to be targeted
- Take Action with marketing programs to reach segment(s)
- Monitor and evaluate the success of these programs compared with objectives
Short version of steps in market segmentation
- Identify needs
- Cluster customers
- Estimate size and feasibility
- Select targeted segment
- Take action with marketing programs
- Monitor and evaluate success
Product differentiation
When we try to find something distinct and different from the competitive markets to create superior customer value for competitive value
Ex. Airlines don’t control airports itself (security lines, etc) , they also didn’t make the airplane, but they can offer better food, points, seats, luggage prices, flight prices,etc.
Product positioning
impression of the branded product you want established in the customers mind relative to their needs and the competition
- image
- product attribute
- price
Steps in product positioning
- Identifying a set of differentiating competitive advantages (airline example)
- Choose the right competitive advantage
- Selecting an overall positioning statement - clear and focused on who the target market is, the product category, and what the product offers (product benefits)
Positioning statement
“ for (target markets) who desires (target market need), (brand) is the (product category) that offers (product benefits) “
Positioning maps
Identify important attributes for a product or brand class.
Discover how target customers rate the product brands with respect to these attributes.
Discover where the companies product or brand is on attributes in the minds of their potential customers
Repositioning
Companies reposition when long term changes in consumer attributes or opinions or the brand require a shift in the brands image more accurately meet customers needs and to reflect how it fits in their lifestyle needs
Also changes in social trends / norms
