Customer Driven Startegies Flashcards
What are the 4 bases for identifying and analysing consumer market segments
Geographical
Behavioural
Psychographic
Behavioural
What is geographical segmentation
Dividing a market into different geographical units such as nations, regions, states, local government areas or neighbourhoods
What are the 4 geographical segment variables
Region
City size (pop)
Density (urban etc)
Climate
What is demographic segmentation
Dividing market into segments based on specific variables such as age gender family size etc.
What are the 9 demographic segmentation variables
Age Sex Family size Family life cycle Income Occupation Education Religion Nationality
What is psychographic segmentation
Divides market into segments based on social class, lifestyle or personality characteristics.
What are the 4 psychographic segmentation variables
Socioeconomic
Status
Values, attitudes and lifestyle
Personality
What is behavioural segmentation
Dividing markets into segments based on consumer knowledge, attitudes, uses or responses to a product
What are the 7 variables for behavioural segmentation
Purchase occasion (when buyers get the idea to buy actually make purchase or use item)
Benefit segmentation (based on benefits) User status Usage rate Loyalty Readiness stage Attitude towards product
What is intermarket segmentation
Forming segments of consumers who have similar needs and buying behaviour even though they live in different countries
What are the requirements for effective segmentation and explain each
Measurable: size, purchasing power, profiles
Accessible: can be effectively reached and served
Substantial: have to be large and profitable
Differentiable: conceptually distinguishable and respond differently to marketing mix elements
Actionable: must be designed for attracting and serving segments
Define target market
A set of buyers sharing common needs or characteristics that the company decides to serve
What are the 4 market targeting strategies
- Undifferentiated marketing (mass)
- Differentiated marketing (segmented)
- Concentrated marketing (niche)
- Micro marketing (local or individual)
Define undifferentiated marketing (mass)
A market coverage strategy where companies decide to ignore market segment differences and go after the whole market with one offer
-focuses on common needs
What is differentiated marketing (segmented)
A market coverage strategy where a firm decides to target several segments and designs offers for each segment
- can be effective but very costly
- must weigh up
What is concentrated marketing (niche)
A market coverage strategy where a company targets a large share of one or a few segments or niches
- can be more effective and efficient
- however it does increase the cost and can be risky if big players come into the market
What is micro marketing
The practice of tailoring products and market programs to the needs and wants of specific individuals and local customer segments. It includes local marketing and individual marketing
What is local marketing
- tailoring brands and promotions to the needs and wants of local customer segments (cities, neighbourhoods, specific stores)
What is individual marketing
Tailoring marketing programns and products to the needs and preferences of individual consumers also labelled one to one marketing.
What targeting strategy would suit these situations:
- Company resources limited
- Uniform products
- Product life cycle née & mature
- Lack or low market variability
- Competitors
- Concentrated (niche) marketing
- Underfferentiated (mass)
- New/mass or niche mature: segmented
- Undifferentiated
- Depends. If they are using segmented and niche it’s too hard to do mass
What are the 4 codes of ethics in socially responsible marketing
Code of advertising and marketing to children
Food and beverages code
Environment claims code
Wagering advertising and marketing communications code
What are positioning maps
Show customer perception of the product versus competing brands
Define product position
The complex set of perceptions impressions and feelings that consumers have for the product compared with competing products
What are the steps in choosing a differentiation and positioning strategy
- Identifying competitive advantages
- Choosing the right competitive advantages
- Selecting overall positioning strategy
Define competitive advantage
An advantage over competitors is gained by offering greater value either through lower prices, or by providing more benefits that justify higher prices
What are the 5 dimensions of differentiation for competitive advantage
- Product (features, design, style)
- Services (speed, convenience etc.)
- Channel (expertise, coverage)
- People (hiring, training)
- Image
What criteria must the differences satisfy
Important: differences deliver high values benefit
Distinctive: competitors do not offer the same thing
Superior: difference is better than competitors
Communicable: difference is able to be communicated and visible to buyers
Pre-emotive: can’t be easily copied
Affordable: buyers can pay
Profitable: must gain revenue
Define value proposition
The full positioning of a brand - the full mix of benefits upon which it is positioned
What are the 5 overall position strategies
- More for more: most prestigious and highest cost
- More for same: comparable quality to more for more but lower price
- Same for less: don’t claim to be different or better but they offer discounts and lower prices
- Less for much less: less than optimal performance but for much lower price
- More for less: hard to sustain
Define positioning statement
A statement that summarises company or brand positioning. It takes this form
To (target segment and need) our (brand) is (concept) that (point of difference)
