Chapter 8 Flashcards
What are the steps involved in segmenting a market?
- Select a product category/market
- Select a basis for segmentation
- Formulate descriptive terms for segments
- Analyze and profile market segments
- Selecting markets
- Designing, implementing and maintaining appropriate market mixes towards each segment
Target market
What are the three types of target markets?
- Undifferentiated target market:
- Concentrated target market
- Multisegment target market
What is customer revenue managment(CRM)
It is a process of producing a product/service customized to a particular customer. Ex: Cakes for cake boss, pimp my ride cars, designer suits tailored for the rich.
Why is CRM helpful?
It can allow marketers to target customers with extremely relevant offerings (willing to offer a lot of money and build a relationship)
What are some trends leading to more Customer relationship managment (CRM)?
- trend to target customers that are the most loyal
- trend to to save time
- trend to personalized products and service (customize to specific customer)
- trend to create technology that addresses you by name (geared specifically for you)
Positioning, perceptual mapping, and repositioning:
- Positioning: influencing the perception a brand, or company to a consumer based on
- price
- product class
- product user
- competitor
- attributes - Perceptual mapping: Placing a group of products in a particular location in the mind of a consumer
- Repositioning: Changing the perception of a brand or company in comparison to it’s competitor in the mind of a consumer.
what are the three categories that make up a market?
- Market: The group of organizations or customers with needs and wants and the ability to buy a product/service
- Market segment: Group of customers with similar characteristics which cause them to want similar products/services to satisfy similar wants/needs
- Market segmentation: Process of dividing markets into identifiable and measurable segments.
What is importance of market segmentation?
- Very important stragety to implement if you want your business to be succesfull
- it’s a powerful marketing tool
- Helps marketers determine the wants and needs of their consumer
- helps decision define business goals and distribute resources efficiently (right target segment)
what are the aspects of successful market segmentation
- Substantial-Should be large enough to develop a marketing mix
- Identifiable and measurable
- Accessible
- Responsiveness-treat segments seperatly only if they respond to the marketing mix differently.
what are the three categories that make up the market?
- Market: organizations or groups of customers with wants and needs and a willingness to pay for a product or service.
- Market segment: Organizations or groups of people with similar characteristics that result in wants and needs for similar products and services
- Market segmentation: process of dividing a market into meaningful, measurable and identifiable segments (groups of customers interested in a similar product/service).
Importance of market segmentation
- A key stragety that successful organizations implement when it comes to marketing to customers
- powerful marketing tool
- help marketers determine what the wants and needs of customers are
- helps decision makers define business goals and distribute resources efficiently
Three aspects of successful market segmentation?
- Substantiality-determining if the market segment is large enough to be profitable
- Identifiability and measurable-making sure that the market segment is identifiable and measurable
- Accessibility- segment should be targetable
- Responsiveness- only treat market segments seperately if they respond to marketing mixes differently.
What are the bases for segmenting a market?
Segment based on:
- Geographic location
- Psychographics
- Benefits sought
- Usage rate
Geographic location:
- Region of the world
- Size of market
- market density-number of people per unit of area
- Market size
- Climate
- impacts purchasing behavior
