Chapter 7 Flashcards
What is segmentation?
Dividing a market into distinct groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
What is targeting?
The process of evaluating each market segment’s attractiveness and selecting one or more segment to enter.
What is differentiation?
Actually differentiating the market offering to create superior customer value.
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
What are major ways to segment consumer market?
Geographic
Demographic
Psychographic
Behavioural
What is geographic segmentation?
Dividing a market into different geographic units, such as global regions, countries, regions, countries, regions within a country, provinces, cities, or even neighborhoods.
What is demographic segmentation?
Dividing the market into segments based on variables such as age, gender, family size, life cycle, household income, occupation, education, ethnic or cultural, and generation.
What are age and life-cycle segmentation?
Dividing a market into different age and life-cycle groups.
What is gender segmentation?
Dividing a market into different segments based on gender.
What is a Household Income (HHI) segmentation?
Dividing a market into different income segments.
What is a psychographic segmentation?
Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
What is behavioral segmentation?
Dividing a market into different segments based on consumer knowledge, attitudes, uses, or responses to a product.
What is occasion segmentation?
Dividing the market into different segments according to occasions when buyers get the idea to buy, actually, make their purchase, or use the purchased item.
What is benefit segmentation?
Dividing the market into segments according to the different benefits that consumers seek from the product.
What is Intermarket (cross-market) segmentation?
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
What segments must be to be useful?
Measurable: the size, purchasing power, and profiles of the segments can be measured.
Accessible: The market segments can be effectively reached and served.
Substantial: The market segments are large and profitable enough.
Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Actionable: Effective program can be designed for attracting and serving the segments.
What is a target market?
A set of buyers sharing common needs or characteristics that the company decides to serve.
What is undifferentiated (mass) marketing?
A market-coverage strategy in which a firm decides to ignore market segments differences and go after the whole market with one offer.
What is differentiated (segmented) marketing?
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
What is concentrated (niche) marketing?
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
What is micromarketing?
The practice of tailoring products and marketing programs to the needs and wants of specific individual and local customer segments - includes local marketing or individual marketing.
What is local marketing?
A small group of people who live in the same city or neighborhood or who shop at the same store.
What is individual marketing (mass customization)?
Tailoring product and marketing programs to the needs and preferences of individual customers.
What is 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.
What is a 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.
Which criteria should a difference satisfy to be worth establishing?
Important: the difference delivers a highly valued benefit to target buyers.
Distinctive: Competitors do not offer the difference, or the company can offer it in a more distinctive way.
Superior: The difference is superior to other ways customers might obtain the same benefit.
Communicable
Pre-emptive: Competitors cannot easily copy the difference.
Affordable: Buyers can afford to pay for the difference.
Profitable: The company can introduce the difference profitability.
What is value proposition?
The full positioning of a brand - the full mix of benefits upon which it is positioned.
What are types of winning value propositions?
More for more (Four seasons, Mercedez) More for the same ( Toyota Lexus) The same for less (Walmart, Best Buy) Less for much less (Ramada Limited) More for Less (Home Depot?)
What is a positioning statement?
A statement that summarizes company or brand positioning - it takes this form: To (target segment and need) is (concept) that (point of difference)
