EM 1 Flashcards
What is NOT marketing?
What you do when your product is no good
What IS marketing?
Activity, institutions and processes for creating, communicating, delivering and exchanging offerings that have value for the customers, clients and partners/ Serving consumer needs profitably
What is strategy?
An overreaching plan to achieve your objectives. Strategies give tactics direction and purpose
What is tactic?
The concrete actions taken to execute a strategy. Tactics turn strategies into actions and results
What is an entrepreneurial mindset characterized by?
Innovation, risk-taking and action
What is positioning?
It consists of differentiation and segmentation
What is segmentation?
What group of customers are you targeting and what are their needs?
What is differentiation?
What is the value, which you deliver?
What should your positioning be?
Narrow, simple and easy to process
Why should you maximize similarity in a group?
Because they respond the same to the same marketing actions
Why segment?
Satisfying the needs on average leads to no needs being satisfied.
One product can be sold to different kinds of people (pregnancy tests)
Increases the efficiency of marketing and responsiveness of customers
What are the bases for segmentation?
Psychographic
Geographical
Demographic
Behavioral - product experience
Characteristics of behavioral segmentation?
Usage Rate (none, potential, first-time, regular)
User Status
Loyalty status (none, medium, strong, absolute)
Occasions (regular vs special)
Benefits
Caveats of segmentation?
Buyer might not be the user –> focus on the user
Buyer and user have conflicting interests –> marketing can reframe the conversation
What are some best practices for segmentation?
Describe the customer the way they see themselves
Does your segment find value in your product
Is the segment small enough to be cohesive but big enough to be profitable
Can you reach your segment?
