chapter 7 Flashcards
State the four major steps in designing a customer-driven marketing startegy
- segmentation
- targeting
- differentiation
- positioning
Explain the customer-driven marketing strategy
- selecting the customer to serve
- segmentation: dividing total market into smaller segments
- targeting: select the segment or segments to enter - Decide on a value proposition
- differentiation: differentiate market offering to create superior customer value
- positioning: position in market offering in minds of target customers.
define market segmentation
dividing market in smaller segments with distinct needs, characteristics or behaviour that might requiire different marketing startegies.
types of market segmentation
- segmenting consumer markets
- segmenting buisness markets
- segmenting international markets
How to segment consumer markets
- geographic segmentation
- demographic segmentation
- physychographic segmentation
- behavioral segmentation.
define geographic segmentation
- dividing market based on different geographic nations, regions, states, cities, countries.
define demographic segmentation
- dividing market based on age, and life-cycle, gender, income.
define psychographic segmentation
- dividing market based on social class, personality characetristics.
define behavioral segmentation.
- dividing market into segments based on consumer knowledge, attitudes, uses of product.
- ocassions–> when customer get idea to buy
- benefits sought–> finding major benefits people look for in a product class..
- user status
- usage rate: light, medium or heavy product users.
types of segmentation analysis
- multiple segmentation–> used to identify smaller, better-defined target groups.
- Experian mosaic USA–> classifies U.S. households into one of 71 lifestyle segments and 19 levels of affluence.
adittional variables used to segment buisness markets
- size
- purchasing approches–> key accounts, national accounts
- situational factors
- personal characterostics
characteristics of segmenting buisness markets
- Segmenting B2B is different
- B2B markets have multiple decision-makers
- B2B products and services are often more complex
- B2B decision-makers go through a more rational process
- The buying cycle is different
- B2B target audiences are smaller
- Personal relationships matter more
How are buisness markets segmented
define international market segmentation
- forming segments of consumer with similar needs, buying behaviours even if they are located in different countries.
How are international markets segmented
- geographic location–> grouping countries by regions such as Western Europe, the Pacific Rim, the Middle East, or Africa.
- economic factors–>grouping countries by population income levels or by their overall level of economic development.
- political and legal factors–> types and stability of the goverment
- cultural factors–> language, religion, values.
requirements for effective segmentation
- measurable
- accesible
- substantial
- differentiable
- actionable
what are the benefits from effective segmentation
- strong marketing activites
- identify most effective marketing tactucs
- design hyper-targeted products and ads
- differntiate from competitors
- niche market opportunities,
process of market targeting
- evaluate market segments
- select target market segments
define target market
- set of buyers with common needs, characteristics a company decides to serve.
- actual customer gorup buisness will attempt to sell its products and services
factors to consider when evaluating market segments
- segment size and growth
- segment structural attractiveness: strong and aggressive competitors, new entrants, substitute products, power of buyers, powerful suppliers.
- companys objectives and resources
Describe marke targeting
- target broadly–> undifferentiated marketing
- target narrowly–> micromarketing
- in between–> differentiated, concentrated
Types of market targeting
define undifferentiated marketing
- targets whole market
- mass market
- common needs
define differentiated marketing
- targeting several market segments
- more expensive
define concentrated marketing
- targets a large share of a smaller market
- meeting unque needs of niche market
- limited resources
- more effective and efficient
what makes a niche market
- demographics
- geographical
- psychographics
advantages of niche marketing
- improved customer relationships: since the type of group is smaller, buisnesses can get to know their customers on an individual level.
- reduced competition–> few companies offering product
disadvantages of of niche marketing
- survival chances may decrease
- might not work long-term
define micromarketing
- producing products and marketing programs that suit specific individuals and locations
LOCAL MARKETING
INDIVIDUAL MARKETING
define local marketing
meeting needs and wants of local customer groups- cities, neighborhoods, stores.
define individual marketing
- tailor products and mkt programs to specific needs of individual customers.
- one-to one marketing
choosing target markets depends on:
- resources–> limited reopurcesn then undifferentiated marketing is more suitable
- product variability
product-life-cycle stage - competitors marketing startegies
- market variability–> little mkt variability–> using undifferentiated marketing
define product positioning
- way product is defined by consumers on important attributes.
- what you do to the mind of the prospect
what does unique selling proposition mean?
- beenfits that are only offered by your product-no one else.
being unique in the customers mind
how to choose a differentiation and positioning strategy
- determine competitive frame of reference by choosing a target market + identify competition.
- identify points of parity and points of difference
how to define a frame of reference
- define target consumer
- who are the competitors
- how brand is similar to competitors (POP)
- how brand is different from them (POD)
define frame of reference
how a new product, service, or concept is seen by the target market.
POPS vs PODS
POPS–> points of parity is how similar a brand is to competitors
PODS–> points-of difference is the attributed that consuemrs associated with brand and cant be found in other brands.
what is a positioning statement
- summarises a brand positioning
- uses this form–> target segment/need, our (brand) is (concept), that (point of difference)
communicating and delivering chosen position
- easier to choose than implementing
- maintaining position requires consistence performance and communication
- must be monitored and adapted over time.
define positioning maps
- show consumer perceptions of market brands vs competing products
define competitive advantage
- advantage over competitors by offering consumers greater value.
A competitive advantage should be
- important
- distinctive
- superior
- communicable
- preemptive
- affordable
- profitable
define value proposition
full mix of benefits in which brand is positioned and differentiated.
