Chapter 7: Segmenting, targeting, and Positioning Flashcards
This process involves choosing segments to address based on matching the firm’s strengths to the segments that will place the greatest value on these strengths and yields the greatest success.
targeting
Creation of greater value for targeted customers than is offered by competitors and the communication of that difference relative to the offerings aimed at the target market segment
Positioning
a method of segmentation used in understanding a given market
segmentation framework
What characteristics are important when segmenting markets?
homogenous needs or buyer behavior
Establishes the framework for the marketing strategy
Positioning
Smaller segments ___ the number of customers that one ofering must satisfy
reduce
Segmentation allows firms to bring more ___ to business customers through their offerings
value
Used to understand the size, value needs, and purchasing characteristics of a particular segment
measurability
Measure of the marketer’s ability to communicate with the market segment and reach them with distribution channels
accessibiity
Implies that a market segment that desires a particular value offering is profitable enough to serve differentially from other segments
Substantiality
Measure of the capabilities of the organization to create a total offering with a competitive advantage
Actionability
What contributes to the differentiation of an offering that involves the same product in multiple market segments?
economic utility, form, time, place, and possession
What are the bases for segmentation?
By product offered By geographic region By industry By size of customer's company By size of account By buying behavior or preferences By technology used by the customer By process and supply chain requirements
This approach to determining a segmentation framework employe research and data interpretation to derive a segmentation framework
Analytic approach
What is the NAICS
North American industry Classification System
Successful innovation translation cannot create a new market segment: T or F
F
What is one barrier to innovation translation?
Resistance encountered due to marketer’s prior relationship with one of their competitors
Thus type of approach only exists because a customer pulled technology through a relationship with a supplier
Innovation Translation
Suppliers whose offerings require significant customer education to take full advantage of the offering will employ a _____ marketing team to educate customers
Field marketing Team
Which approach should be used when the marketer faces a market with many customers or when the marketer is looking to enter a new market in which his company has little or no experience ?
Analytic approach
Which is a more attractive market. One that is large and is growing fast, or one that is smaller and slower-growing?
One that is large and growing fast
When is a market segment competitively attractive?
When there are significant barriers to entry for other competitors.
What two factors represent the least attractive channels?
Segments that have no suitable channels addressing them currently and for which development of new channels would be difficult and those segments for which well-established channels exist with one or few dominant channel members.
How do supply chains create value in lower costs?
By mitigating the bullwhip effect
What happens as a product category enters maturity?
The cost, time, and place benefits provided by an integrated supply chain are likely to increase
Identifies the company’s current core competencies and those that it is building for the future?
The marketer’s environmental analysis
`Which segments should a firm start with when choosing target segments?
Firms should start with the most attractive segments
is it a good idea to use both the analytic and translation approach in combination when determining which segments to serve?
Yes, a firm can benefit from utilizing both approaches when determining the segments that it wants to serve with its offerings.
Each target market’s members have ______ dimensions that are most important to them and are likely part of the defining parameters of the segment.
value dimensions
Where does positioning occur?
Positioning occurs in the mind of the prospect or customer
Succinct statement of the positioning the company hopes to achieve in the minds of its target customers.
Positioning statement
Moore obsevred what about markets for innovation?
markets for innovation evolve in a regular pattern
When a marketer uses the TALC as a guideline for segmenting, targeting, and positioning…
A strategy of innovation translation creates a focused process that identifies potential customer niches
A segment that has relatively well defined boundaries
Niche segment
Groups of products that are sold together or that address similar market segments
Product Lines
As members of buying centers go to other companies in other segments as their careers progress they take their beliefs along with them and expect suppliers to provide similar types of value across segments
Cross fertilization
A product in the line that is well-known and conveys positioning for the whole line
Flagship product
