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Marketing fundamentals > chapter 7 > Flashcards

chapter 7 Flashcards

1
Q

State the four major steps in designing a customer-driven marketing startegy

A
  1. segmentation
  2. targeting
  3. differentiation
  4. positioning
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2
Q

Explain the customer-driven marketing strategy

A
  1. selecting the customer to serve
    - segmentation: dividing total market into smaller segments
    - targeting: select the segment or segments to enter
  2. Decide on a value proposition
    - differentiation: differentiate market offering to create superior customer value
    - positioning: position in market offering in minds of target customers.
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3
Q

define market segmentation

A

dividing market in smaller segments with distinct needs, characteristics or behaviour that might requiire different marketing startegies.

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4
Q

types of market segmentation

A
  • segmenting consumer markets
  • segmenting buisness markets
  • segmenting international markets
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5
Q

How to segment consumer markets

A
  1. geographic segmentation
  2. demographic segmentation
  3. physychographic segmentation
  4. behavioral segmentation.
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6
Q

define geographic segmentation

A
  • dividing market based on different geographic nations, regions, states, cities, countries.
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7
Q

define demographic segmentation

A
  • dividing market based on age, and life-cycle, gender, income.
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8
Q

define psychographic segmentation

A
  • dividing market based on social class, personality characetristics.
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9
Q

define behavioral segmentation.

A
  • 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.
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10
Q

types of segmentation analysis

A
  • 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.
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11
Q

adittional variables used to segment buisness markets

A
  • size
  • purchasing approches–> key accounts, national accounts
  • situational factors
  • personal characterostics
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12
Q

characteristics of segmenting buisness markets

A
  • 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
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13
Q

How are buisness markets segmented

A
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14
Q

define international market segmentation

A
  • forming segments of consumer with similar needs, buying behaviours even if they are located in different countries.
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15
Q

How are international markets segmented

A
  1. geographic location–> grouping countries by regions such as Western Europe, the Pacific Rim, the Middle East, or Africa.
  2. economic factors–>grouping countries by population income levels or by their overall level of economic development.
  3. political and legal factors–> types and stability of the goverment
  4. cultural factors–> language, religion, values.
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15
Q

requirements for effective segmentation

A
  1. measurable
  2. accesible
  3. substantial
  4. differentiable
  5. actionable
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16
Q

what are the benefits from effective segmentation

A
  1. strong marketing activites
  2. identify most effective marketing tactucs
  3. design hyper-targeted products and ads
  4. differntiate from competitors
  5. niche market opportunities,
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17
Q

process of market targeting

A
  1. evaluate market segments
  2. select target market segments
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17
Q

define target market

A
  • set of buyers with common needs, characteristics a company decides to serve.
  • actual customer gorup buisness will attempt to sell its products and services
18
Q

factors to consider when evaluating market segments

A
  1. segment size and growth
  2. segment structural attractiveness: strong and aggressive competitors, new entrants, substitute products, power of buyers, powerful suppliers.
  3. companys objectives and resources
19
Q

Describe marke targeting

A
  1. target broadly–> undifferentiated marketing
  2. target narrowly–> micromarketing
  3. in between–> differentiated, concentrated
20
Q

Types of market targeting

A
21
Q

define undifferentiated marketing

A
  • targets whole market
  • mass market
  • common needs
22
Q

define differentiated marketing

A
  • targeting several market segments
  • more expensive
23
Q

define concentrated marketing

A
  • targets a large share of a smaller market
  • meeting unque needs of niche market
  • limited resources
  • more effective and efficient
24
Q

what makes a niche market

A
  • demographics
  • geographical
  • psychographics
25
Q

advantages of niche marketing

A
  • 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
26
Q

disadvantages of of niche marketing

A
  • survival chances may decrease
  • might not work long-term
27
Q

define micromarketing

A
  • producing products and marketing programs that suit specific individuals and locations

LOCAL MARKETING
INDIVIDUAL MARKETING

28
Q

define local marketing

A

meeting needs and wants of local customer groups- cities, neighborhoods, stores.

29
Q

define individual marketing

A
  • tailor products and mkt programs to specific needs of individual customers.
  • one-to one marketing
30
Q

choosing target markets depends on:

A
  • 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
31
Q

define product positioning

A
  • way product is defined by consumers on important attributes.
  • what you do to the mind of the prospect
32
Q

what does unique selling proposition mean?

A
  • beenfits that are only offered by your product-no one else.
    being unique in the customers mind
33
Q

how to choose a differentiation and positioning strategy

A
  • determine competitive frame of reference by choosing a target market + identify competition.
  • identify points of parity and points of difference
34
Q

how to define a frame of reference

A
  • define target consumer
  • who are the competitors
  • how brand is similar to competitors (POP)
  • how brand is different from them (POD)
35
Q

define frame of reference

A

how a new product, service, or concept is seen by the target market.

36
Q

POPS vs PODS

A

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.

37
Q

what is a positioning statement

A
  • summarises a brand positioning
  • uses this form–> target segment/need, our (brand) is (concept), that (point of difference)
37
Q

communicating and delivering chosen position

A
  • easier to choose than implementing
  • maintaining position requires consistence performance and communication
  • must be monitored and adapted over time.
38
Q

define positioning maps

A
  • show consumer perceptions of market brands vs competing products
39
Q

define competitive advantage

A
  • advantage over competitors by offering consumers greater value.
40
Q

A competitive advantage should be

A
  • important
  • distinctive
  • superior
  • communicable
  • preemptive
  • affordable
  • profitable
41
Q

define value proposition

A

full mix of benefits in which brand is positioned and differentiated.

42
Q
A
43
Q
A

Marketing fundamentals (7 decks)

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