Marketing strategy Flashcards
Market segmentation
Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors and who might require separate marketing strategies or mixes.
+ Advantage: Predict consumer behaviour relatively well
- Disadvantage: Rather difficult to measure.
Market targeting (targeting)
Evaluating each market segment’s attractiveness and selecting one or more
segments to serve
Differentiation
Actually differentiating the market offering to create superior customer value.
Positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Geographic segmentation
Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
+ Advantage: Easy to measure, easy to understand
- Disadvantage: They do not predict consumer behavior so well.
Demographic segmentation
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education,
religion, ethnicity, and generation
+ Advantage: Easy to measure, easy to understand
- Disadvantage: They do not predict consumer behaviour so well.
Age and life-cycle segmentation
Dividing a market into different age and
life-cycle groups.
Gender segmentation
Dividing a market into different segments based on gender
Psychographic segmentation
Dividing a market into different segments based on lifestyle or personality
characteristics.
Behavioral segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Occasion segmentation
Dividing the market into segments according to occasions when buyers
get the idea to buy, actually make their purchase, or use the purchased item.
Benefit segmentation
Dividing the market into segments according to the different benefits that consumers seek from the product
Intermarket (cross-market) segmentation
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
Target market
A set of buyers who share common needs or characteristics that a company decides to serve.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
+ Low production and communication costs
→ lower prices
→ higher margins
Differentiated (segmented)
marketing
A market-coverage strategy in which a firm targets several market segments and designs separate offers for each
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
Micromarketing
Tailoring products and marketing programs to the needs and wants of
specific individuals and local customer segments; it includes local marketing and individual marketing.
Local marketing
Tailoring brands and marketing to the needs and wants of local customer
segments—cities, neighborhoods, and
even specific stores
Individual marketing
Tailoring products and marketing programs to the needs and preferences
of individual customers
Product position
The way a product is defined by consumers on important attributes—the
place it occupies in consumers’ minds relative to competing products
Competitive advantage
An advantage over competitors gained by offering greater customer value either by having lower prices or providing more
benefits that justify higher prices
Value proposition
The full positioning of a brand—the full mix of benefits on which it is positioned.
Positioning statement
A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
