Chapter 7 Flashcards
Segmentation
Involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes
Targeting
Evaluating each market segments attractiveness and selecting one of more segments to enter
Differentiation
Differentiating the market offering to create superior customer value
Positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers
Demographic segmentation
Divides the market into segments based on variables such as age, gender, family size, life cycle, HHI, occupation, education or ethnic or cultural group
- Most popular bases for segmenting customer groups
Psychographic Segmentation
Dividing a market into different segments based on social class, lifestyle, or personality characteristics
Behavioural Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
- Includes user status, usage rates, loyalty status
Intermarket Segmentation
Forming segments of consumers who have similar needs and buying behaviours even though they are located in different countries
Five Requirements for Effective Segmentation
1) Measurable
2) Accessible
3) Substantial
4) Differentiable
5) Actionable
Target Market
A set of buyers sharing common needs or characteristics that the company decides to serve
Undifferentiated Marketing
- Aka Mass Marketing: a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one another
- Focuses on what is common in the needs of consumers rather then what is different
Differentiated Marketing
A market coverage strategy in which a firm decides to target several mart segments and designs separate offers for each
Concentrated Marketing
A market coverage strategy in which a firm goes after a large share of one or a few segments of niches
Micromarketing
Practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing
Product Position
The way the product is defined by consumers on important attributes, the place the product occupies in consumers minds relative to competing products
Perceptual Position Maps
Map showing consumers perceptions on their brands versus competing products on important buying dimensions
- Shows price, orientation and as well size of the circle si the relative marketing share
Competitive Advantage
An advantage over competitors gained by offering greater customer value, either through lower prices, or by providing more benefits that justify higher prices
Three steps if differentiating and Positioning
1) Identifying possible value differences and competitive advantages
2) Choosing the Right Competitive Advantage
3) Selecting overall positioning strategy
Unique selling Proposition
One main difference the product or brand has
Seven Differences to Promote
1) Important
2) Distinctive
3) Superior
4) Communicable
5) Preemptive
6) Affordable
7) Profitable
Value Proposition
The full positioning of a brand, the full mix benefits upon which it is positioned
More for More
- More service or upscale product for higher cost
More for the Same
Comparable quality at a lower price
The Same for Less
Same product for cheaper, ex Walmart
Less for Much less
Products that offer less and therefore cost less
More for LEss
Higher quality for lower cost, non sustainable in the long run though
Positioning Statement
A statement summarizing company or brand positioning taking the form:
To (Target segment and need) our (brand) is (concept) that (point of difference)
