Chapter 8 Flashcards
What does the STP process consisted of?
Segmentation
Targeting
Positioning
T/F- The STP process leads into the marketing mix
True
How you or your company responds more effectively to wants of potential buyers in order to increase sales and outfits is known as
Purpose
What are the three steps of the STP process?
Identify Market Needs
Link needs to actions
Execute marketing program actions
What needs are you identifying in step 1 of the STP process?
Product Features
Expense
Quality
Savings in time and convenience
What are the link needs to action in step 2 of the STP process
Take steps to segment and target markets
What helps execute marketing program tactics in step 3 of the STP process?
The marketing mix:
Product
Price
Promotion
Place
What are the steps to link needs to actions within step 2 of the STP process?
1) Group potential buyers into segments
2) Group products to be sold into categories
3) Develop a market-product grid and estimate size of markets
4) Select Target Markets
5) Take marketing actions to reach target markets
1) Group potential buyers into segments
2) Group products to be sold into categories
3) Develop a market-product grid and estimate size of markets
4) Select Target Markets
5) Take marketing actions to reach target markets
The following steps help which step of the STP process?
Step 2: Link needs to action
aggregating prospective buyers into groups, or
segments that have common needs and will respond similarly to a marketing action is known as
Market Segmentation
Homogenous groups of similar buyers is known as
Market Segments
Why is it important to segment markets?
- To respond more effectively to the wants of potential buyers, thereby increase sales and profits
- Provides links between various buyers needs and marketing program
- One size fits all no longer applies
What is the criteria that is used in forming the segments?
- Simplicity and cost-effectiveness
-potential for increased profit - similarity of needs of potential buyers within a segment
- difference of needs of buyers among segments
- potential of a marketing action to reach a segment
How can you segment consumer markets?
Geographic
Demographic
Psychographic
Benefit
Behavioral
How can geographic markets be grouped?
Country
Region
Areas within region
- state, city, neighborhood
T/F-Geographic segmentation is most useful for companies whose products satisfy needs that vary by region
True
What is the most common way to segment markets?
By demographics
Segmentation based on identifiable population characteristics is known as
Demographic Segmentation
Which type of market segmentation involves understanding consumer lifestyles, interests, and options?
Psychographic Segmentation
Which type of segmentation delves into how they described themselves and is based on characteristics of how they spend their time and money
Psychographic Segmentation
What type of segmentation is divided based on need/want and segments on the basis of the benefits the consumer is seeking from products such as
Convenience
Status
Value
Safety
Esteem
Benefit Segmentation
Segmentation based on consumer relationship
with the product or the firm that takes occasion, loyalty, buying stages, and usage rates into account
Behavioral Segmentation
What term can described the reason for the purchase
Occasion
What term can the describe the consumer decision making process?
Buying Stage
The quantity consumed or patronage (store visits) during a specific period is known as
Usage Rate
Slide 16?
T/F- A Market Can Be Segmented Based on ANYTHING As Long As It Is Relevant to the Product and Market and Meets the Criteria for Having a Viable Target Market
True
What are some examples of of the criteria that is used in selecting target markets?
Market size
Expected growth
Competitive position
Cost of reaching the segment
Organizational compatibility
The marketing strategy that
involves a firm using different marketing mix actions
to help consumers perceive the product as being
different and better than competing products can be described as
Product Differentiation
What are some examples of product differentiation?
Different benefits
Different product features
Difference in quality
Difference in price
21-24
Defining marketing mix variables so target customers have a clear, distinctive understanding of what product does where positioning is in the mind of the consumer. It is also based on important attributes relative to competitive products is known as
Product Positioning
What are the 4 positioning methods?
Value Proposition
Competition
Symbols
Salient Attributes
The unique value a product/service provides to consumers is known as
Value Position
Head-to-head positioning is known as
Competition
The logs and icons of the brand can be described as
Symbols
The product attributes most important to target can be described as
Salient Attributes
Changing the place a product occupies in a consumer’s mind relative to competitive products can be described as
Product Repositioning
What map displays two
dimensions ad the location of products or brands in the mind of the consumers
Perceptual Map
What type of map enables managers to how consumers perceive differences and may indicate opportunity for new products is known as
Perceptual Map
