Chapter 7 Creating Value for Target Customers Flashcards
Market segmentation
is dividing a market into smaller groups with distinct needs, characteristics, or behavior that require separate marketing strategies or marketing mixes
Targeting
is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Differentiation
involves actually differentiating the market offering to create superior customer value
Positioning
consists of arranging for a market offering to occupy a clear, distinctive and desirable place in the minds of consumers
Geographic Segmentation
divides the markets into different geographic locations
Demographic Segmentation
divides the market into segments based on variables such as age lifecycle gender ic=ncome occupation…..
Psychological Segmentation
Divides the market into segments based on social class , lifestyle, or personality characteristics
Behavioral Segmentation
Divides the market into segments based on based on consumer’s knowledge attitudes or responses to a product
Multiple Segmentation
used to identify smaller better defined groups
Intermarket Segmentation
involves forming segments who have similar needs and buying behavior, even though they are located in different countries
Target Market
Set of buyers who share common characteristics or needs that the company decides to serve
Undifferentiated/ Mass Marketing
Targets the whole market with one offer
Differentiated or Segmented Marketing
Targets several different market segments and designs separate offers
Concentrated (Niche) Marketing
Targets a large share of one or a few smaller segments or niches
Micromarketing
tailoring products and marketing programs to suit the tastes of locations and specific individuals .
Drawbacks
Higher Costs & No economies of scale
Benefits
Very close attention to detail
Benefits
Very close attention to individual customer needs
Local Marketing
tailoring products & promotions to the needs and wants of local customer groups
Individual Marketing
involves tailoring products and marketing programs to the needs and preferences of individual customers.
Mass Customization
Firms interacting one-to-one using tech with customers
Product Position
is the way the product is defined by consumers on important attributes-the place it occupies in consumer’s mind relative to product
Competitive Advantage
advantage over competitors gained by offering consumers great value either through lower prices or providing more benefits
Value Proposition
the full mix of benefits upon which a brand is positioned
