Marketing Strategy Exam Flashcards
Descriptor Variables? (3)
Customer Characteristics,
Product-Related Behavioural Characteristics,
Business Characteristics
Descriptor Variables - Customer Characteristics? (6)
Demographics Socio-economics Geographic location Benefits sought Usage Attitudes, interests, opinions: 'Psychographics'
Descriptor Variables - Product-Related Behavioural Characteristics (3)
Purchase Behaviour
Purchase Occasion
Consumption Behaviour
Descriptor Variables - Business Characteristics (4)
Size
Turnover
Location
Employees
Main Targeting Conditions (3)
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
What is Undifferentiated Marketing?
Producing a single product designed to appeal across the board to all customers
What is Differentiated Marketing?
Offering a different product to each of the different market segments
What is Concentrated Marketing?
Focusing attention on one, or few segments
Steps in Segmentation, Targeting and Positioning (6)
- Identify bases for segmenting the market
- Develop profiles of resulting segments
- Develop measures of segment attractiveness
- Select target segments
- Develop positioning for each target segment
- develop marketing mix for each target segment
Main Benefits of Segmentation? (4)
Identify opportunities
Assess competitive positioning
Identify market/customer changes
Assess tactical implementation decisions
Disadvantages of Market Segmentation (4)
Can be expensive in terms of production and marketing of products to only those specific groups of the market
Mass Production which offers economies of scale
Standardisation of service offers increased delivery speed and efficiency
Increase in promotion, administrative and inventory costs
Positioning - Factors to Consider (5)
Competition - look for a gap or niche
Customers - seek product attributes
Company - status of current image
Repositioning - have the needs of the target market changed?
Marketing Mix - must support the selected position
Steps to Choosing and Implementing a Positioning Strategy (3)
- Identify possible competitive advantages: competitive differentiation
- Selecting the right competitive advantage: USP
- Communicating and delivering the right Chosen Position
Positioning Differentiation Strategies (4)
Product differentiation (standardised or customised?) Service differentiation (e.g. installation, speed?) Personnel differentiation Image differentiation (Brand image and messaging)
Difference between marketing management and strategic marketing?
The job of marketing management is to define the marketing mix and segments for products in the portfolio, whilst designing the promotional mix, advertising and brand building as well.
Strategic marketing is to find out the competitors in the market, find out the most profitable segments, and how to convert those segments into cash cow. Similarly, if a 11th segment is to be explored, or one of the product has to be removed from the portfolio, will also be decided by strategic marketing. SWOT analysis, market entry, market exit, product decisions, and other such decisions fall under the domain of strategic marketing.
Even when things are going strategic marketing is tasked with evaluation in case of things going wrong
The factors that influence targeting strategy (4)
Camilleri, 2017
The company’s resources
The type of service which is to be offered
Diversities within the market
The competitors market coverage strategies
Effective production positioning characteristics (4)
Camilleri, 2017
Built around benefits for prospective customers
Differentiate the specific firms products/service from those of competitors
The respective firms need to possess relevant skills, resources, and the credibility to deliver on their implied statements and promises
An effective position is defensible, which means that an aggressive competitor cannot act quickly to neutralise or preempt another positioning strategy
Business Examples of Segmentation
Lego - Six persona’s
Disney - Age and gender
Spotify - Student, family, business etc.
Business Examples of Positioning
Apple - ‘Think Different’
Volvo - Safety
ASOS - Innovator
