Lecture 5 Flashcards
1
Q
Market segmentation
A
lack resources to serve all customers due to too many customers, scattered and varied needs.
2
Q
steps for market segment
A
segmentation
- divide total market
targeting
- select segment(s) to enter
differentiation
- differentiate market offering to create superior customer value
positioning
- position market offering in minds of target customers
3
Q
Evaluate target segments
A
- size and growth:
select largest, fastest and most profitable segment - structural attractiveness:
absence of strong competitors, non-existence of substitute products - objectives and resources
4
Q
Major segmentation bases
A
- Geographic
[nations, cities or neighbourhood] - Demographic
[age, gender, income, occupation, race & religion] - Psychographic
[lifestyle or personality characteristics] - Behavioural
[consumer knowledge, attitudes, uses of a product, or responses]
5
Q
Market coverage strategies
A
- undifferentiated
- differentiated
- concentrated [niche]
- micromarketing
6
Q
Differentiate
A
- product: performance, style & design
- service: speed & convenient service
- channel: coverage & performance
- people: hiring & training staff
- image: convey unique benefits & distinctive image
7
Q
position strategies
A
- more for more
- more for same price
- more for less price
- same for less price
- less for much less price
8
Q
target segment
A
brand concept is different [point of different]
9
Q
positioning map
A
consumer perception of brand and competitors based on important buying dimensions.
