Chapter 6 Flashcards
What is Major Steps in Designing a Customer Value-Driven Marketing Strategy?
*Market Segmentation: Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
*Targeting: Evaluating and selecting the most attractive market segments to enter.
*Differentiation: Differentiating the market offering to create superior customer value.
*Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place in the minds of target customers.
What are the major segmentation variables for consumer markets?
- Geographic
- Demographic
- Psychographic
- Behavioral
What is the objective of behavioral segmentation?
To categorize markets into nonusers, ex-users, potential users, first-time users, and regular users.
What are the bases for business market segmentation?
- Demographics
- Operating characteristics
- Purchasing approaches
- Situational factors
- Personal characteristics
What are the requirements for effective segmentation?
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
What is Evaluating Market Segments?
*Segment Size and Growth
*Segment Structural Attractiveness
*Company Objectives and Resources
What is the value proposition of Sonos?
Unleashes ‘All the music on earth, in every room of your house, wirelessly.’
List the types of winning value propositions.
- More for more
- More for the same
- More for less
- The same for less
- Less for much less
What variables are considered when segmenting international markets?
- Geographic location
- Economic factors
- Political and legal factors
- Cultural factors
What is intermarket segmentation?
Grouping consumers with similar needs and buying behaviors irrespective of their location.
What is a positioning statement?
Summarizes company or brand positioning.
What is the format of a positioning statement?
To (target segment and need) our (brand) is (concept) that (point of difference).
What are the factors to consider when choosing a targeting strategy?
- Company resources
- Product variability
- Product’s life-cycle stage
- Market variability
- Competitors’ marketing strategies
What are the characteristics of a competitive advantage?
- Important
- Distinctive
- Superior
- Communicable
- Preemptive
- Affordable
- Profitable
What does product position refer to?
The way a product is defined by consumers on important attributes.
What is a unique selling proposition (USP)?
A unique benefit that a brand offers to its customers.
What is occasion segmentation?
Segments divided according to occasions when buyers get the idea to buy, make their purchase, or use the purchased item.
What is benefit segmentation?
Segments divided according to the different benefits that consumers seek from the product.
Define demographic segmentation.
Dividing a market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
What is psychographic segmentation?
Segmenting markets using variables such as social class, lifestyle, and personality characteristics.
True or False: Micromarketing includes local and individual marketing.
True
What is the first step in designing a customer value-driven marketing strategy?
Market segmentation.
What are the three steps in differentiation and positioning?
- Identifying differentiations to create competitive advantage
- Choosing advantages to build a position
- Selecting an overall positioning strategy
Fill in the blank: A brand’s full positioning is its _______.
[value proposition]
What is the purpose of segmentation systems?
To help marketers segment people and locations into marketable groups of like-minded consumers.
