FINAL MKG Flashcards
What are the 4 segmentation strategy ?
Concentrated
Differentiated
Undifferentiated
Personalized
What are the 2 targeting strategy ?
- Mass marketing
- Mass customization
What is mass marketing ?
a strategy where a company promotes and sells its products or services to a broad and undifferentiated audience.
What is mass Customization ?
a strategy that combines elements of both customization and mass production. It seeks to deliver personalized products or services to meet the specific needs of individual customers.
What is Concentrated marketing ?
Company focus on one specific target market group
- Using fewer resources for marketing efforts
- Becoming an expert in your chosen field
- Customizing your branding for your audience
- Analysing the effectiveness of campaigns and strategies
What is Undifferentiated marketing ?
Mass marketing.
Reach as large an audience as large as possible.
- To communicate the benefits of the products (P/S) by sending the same promotional image to everyone
- Attracting a large numbers of consumers
- The whole marketing process can be much cheaper
- Undifferentiated price (no customization of prices based on different customer groups, geographic locations, or other factors.)
- It’s important to have a marketing information system
What is Differentiated marketing ?
Understanding the consumers’ needs. Businesses can satisfy the need of various consumers. Marketing campaigns for 2 or more consumers segments.
- Satisfy the needs of a range of consumers
- Creates a strong business presence
- Increases of sales, revenue
- Increase competitive advantage
- Allow business to adapt
What is Personalized marketing ?
Method of marketing that accounts for a consumers’ personal needs, wants and interests.
AI, algorithm, market research.
Buyer persona!
- Ability to reach audience more efficiently (qualification)
- Increase conversion rates (improving the percentage of visitors to a website or users of an application)
- Shows audience you are paying attention to them
-Improve consumer loyalty and consumer experience - Crate constancy across channels
What are the segmentation methods/basis ?
Geographical
Sociodemographic
Psychographic
behavioral
What are the two market demand ?
Heterogenous demand
Homogenous demand
What is Heterogenous demand ?
- Diverse Preferences: Consumers have diverse preferences and needs for a product.
- Differentiated Products: There is a need for product differentiation to cater to various consumer segments.
- Customized Marketing: Strategies need customization to target specific consumer segments with tailored messages.
- Segment Targeting: Identify and target specific consumer segments based on unique preferences.
Examples: Smartphone market with varied feature preferences, customized travel experiences.
What is Homogenous demand ?
- Similar Preferences: Consumers have relatively similar or identical preferences for a product.
- Interchangeable Products: Products are viewed as interchangeable or identical.
- Price Sensitivity: Purchasing decisions are often based on factors like price and convenience.
- Cost Emphasis: Marketing strategies focus on cost efficiencies, mass marketing, and price competitiveness.
Examples: Basic commodities, standardized household goods.
What is segmentation ?
Identify distinct groups of buyers
- select one or more segments to enter
- For each segment- company’s market mix marketing
What are the 2 main types of differentiation strategy ?
- Broad differentiation
- Focus differentiation
What is the Broad differentiation ?
Broad differentiation involves creating a unique product or service that appeals to a wide range of customers.
-Wide Market Appeal
- Brand Image:
- Higher Price
ex : apple, It is positioned as a premium, innovative smartphone with distinctive design and features.
What is the Focus differentiation ?
involves creating a unique product or service that caters to the specific needs and preferences of a narrow, specialized segment of the market.
- Niche Market
- Customization
- Deep Customer Understanding
ex : rolex, Rolex caters to a niche market seeking luxury, precision, and craftsmanship in high-end timepieces.
What are the benefit of creating a differentiation strategy ?
- Reduced price competition. (advantage of it is buy reduced price competition)
- Unique products (quality, attributes).
- Better profit margin.
- Customer brand loyalty.
- No perceived substitutes.
What are the consumer behavior and purchasing decisions in marketing ?
- Assign value to attributes
- Be willing to pay the price
What does “Assign value to attributes” for a consumers means ?
- Consumers evaluate products or services based on specific attributes or features.
- These attributes could include quality, functionality, design, brand reputation, convenience, and other factors that contribute to the perceived value of the product.
What does “ Be willing to pay the price” means to consumers ?
- Consumers not only assess the value of the attributes but also consider whether the perceived value justifies the cost or price of the product.
- Willingness to pay reflects the maximum price a consumer is willing to spend to acquire the desired attributes or benefits.
How do customers makes choices ?
if the offer lives up to their expectations and satisfaction.
if the products or services offers what they are looking for. Then they will likely be more able to use it.
What “axes of differentiation” refers to ?
the “axes of differentiation” refer to the specific dimensions or criteria along which a product or brand seeks to differentiate itself from competitors.
What are the 3 criteria for choosing axes of differentiation ?
- Competition positioning – market:
- Competitive advantages of our P/S – offer.
- Customers expectations (buyers and users) – market:
What is positioning ?
is about shaping how customers perceive a product or brand compared to others, creating a distinctive and favorable identity that influences their buying decisions.
The 3 key factors of positioning ?
- Identify the target market
- Identify the competition
- Define the differentiator attributes
What is the perception ?
The real perception that the consumer have of the business offer and of the corporate branding.
- if a person have a negative perception of it then, it would be hard to change it
What are the 4 quality of positioning ?
- Simplicity
- originality
- credibility
- relevant
The 3 steps of positioning strategy ?
- Clearly define the target segment
- Determine the number and nature of the attributes to be valued
- Implement means of communication to promote the attributes
What are the Positioning strategy methods ?
- Attribute Positioning: Emphasizing specific product features or attributes.
- Benefit Positioning: Highlighting the benefits or solutions a product provides.
- User Positioning: Focusing on a specific target audience or user.
- Competitor Positioning: Contrasting a product with competitors in the market.
What is the perceptual map ?
A diagram mapping out what the customers think about your products or services.
Aside from just the offering, it can also map what they think about other brands even competitors and their products.
Finally, perceptual mapping uses customers data to build a viewpoint on where different brands and their products stand within the overall ecosystem.
What are the 5 levels product ? Kotler’s model
- core need and benefit
- Generic product
- Expected product
- Augmented product
- Potential product
what is core need and benefit ?
- Explanation: This is the fundamental need or want that the product satisfies.
- Enables: Identifying the essential function or purpose of the product.
