Chapter 7: customer value Flashcards

1
Q

market segmentation

A

dividing the market into different groups of buyers who have different needs, characteristics or behaviors and who might require separate marketing strategies

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2
Q

market targeting

A

evaluating each segment’s attractiveness and selecting one or more segments to serve

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3
Q

Differentiation

A

Actually differentiating the market offering to create superior customer value

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4
Q

Positioning

A

arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target customers

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5
Q

market segmentation

A

dividing markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs

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6
Q

demographic segmentation

A

dividing the market into segments based on variables such as age, life cycle stage, gender, income, occupation, education, religion, ethnicity and generation

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7
Q

geographic segmentation

A

dividing the market into different geographical units such as nations, states, regions, countries, cities or even neighbourhoods

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8
Q

psychographic segmentation

A

dividing the market into different segments based on lifestyle and personality characteristics

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9
Q

behavioral segmentation

A

divide the market in segments based on consumer knowledge, attitudes, uses of a product or responses to the product

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10
Q

occasion segmentation

A

divide the market into segments according to occasions when buyers get the idea to buy, make the purchase or use an item

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11
Q

Benefit segmentation

A

divide the market into segments according to the different benefits that consumers seek from the product

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12
Q

User status

A

Markets can be segmented into non users, ex-users, potential users and regular users of a product

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13
Q

usage rate

A

markets segmented into light, medium and heavy product users

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14
Q

loyalty status

A

market segmented by consumer loyalty by looking at customers who are shifting away

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15
Q

Using multiple segmentation bases

A

marketers usually use multiple segmentation bases in an effort to identify smaller, better defined target groups

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16
Q

Intermarket (cross market) segmentation

A

form segments of consumers who have similar needs and buying behaviors even though they are located in different countries

17
Q

Requirements for effective segmentation

A
  • measurable: size, purchasing power and profiles can me measured
  • accessible: can be effectively reached and served
  • substantial: large and profitable enough
  • differentiable: distinguishable and respond differently to different marketing mix elements and programs
  • actionable: effective programs can be designed for attracting and serving the segments
18
Q

factors to evaluate market segments

A
  • segment size and growth
  • structural attractiveness
  • company objectives and resources
19
Q

target market

A

set of buyers who share common needs or characteristics that a company decides to serve

20
Q

undifferentiated marketing

A

marketing-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with no offer

21
Q

differentiated marketing

A

strategy in which firms target several market segments and designs separate offers for each

22
Q

concentrated marketing

A

strategy in which a firm goes after a large share of one or a few market segments or niches

23
Q

micromarketing

A

tailor products and marketing programs to the needs and wants of specific individuals and local customer segments

24
Q

local marketing

A

tailor brands and marketing to the needs and wants of local customer segments

25
individual marketing
tailor products and marketing programs to the needs and preferences of individual customers
26
factors for choosing a targeting strategy
companies consider factors such as product variability, resources, product life cycle and market variability
27
market variability
if most buyers have the same tastes and behavior, undifferentiated marketing is appropriate
28
value proposition
How it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
29
Product position
the way a product is defined by consumers on important attributes - the place it occupies in consumers minds relative to competing products
30
positioning maps
diagrams that show consumer perceptions of their brands versus those of competing products on important buying dimensions
31
competitive advantage
an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices
32
more for more
providing the most upscale product and charging a higher price
33
more for the same
offering more for the same price
34
same for less
premium products at non premium prices
35
less for much less
offer less and cost less
36
more for less
best product selection and lowest prices
37
positioning statement
statement that summarises company or brand positioning using the following form: to (target segment and need) our (brand) is (concept) that (point of difference)