Module 3 Flashcards
a group of potential customers with similar needs who are willing to exchange something of value with sellers
market
Is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
Market Segmentation
This two-step process isn’t well understood.
Market Segmentation
this market segmentation efforts often fail because they start with the whole mass market and try to find one or two demographic characteristics to divide up (segment) this market.
first-time market segmentation
No one firm can satisfy everyone’s needs.
TRUE OR FALSE
TRUE
is a (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way.
market segment
_____ start with the idea that each person is one of a kind but that it may be possible to aggregate some similar people into a product-market
segmenter
More Sophisticated Techniques May Help in Segmenting and Targeting:
- Clustering Techniques
- Customer Relationship Management (CRM),
________ try to find similar patterns within sets of data.
Clustering Techniques
Clustering groups customers who are similar on their segmenting dimensions into _____
homogeneous segments
where the seller fine tunes. the marketing effort with information from a detailed customer database.
customer relationship management (crm)
Possible Segmenting Dimensions and Typical Breakdowns for Consumer Markets
Behavioral, Geographic, Demographic
refers to how customers think about proposed or present brands in a market
Positioning
Without a realistic view of how customers think about offerings in the market, it’s hard for the marketing manager to differentiate.
TRUE OR FALSE
TRUE
it’s easy for the marketing manager to differentiate even without a realistic view of how customers think about offerings in the market
TRUE OR FALSE
FALSE
an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
competitive advantage
is the full mix of benefits upon which a brand is positioned
value proposition
Segmentation and Targeting
•Defining markets
•Understanding dimensions to use
•Identifying segments
•Deciding on segments to target
•Using segmentation approaches
Differentiation and Positioning
•Understanding customer’s view
•Using positioning techniques
•Evaluating segment preferences
•Differentiating the marketing mix
•Knowing relationship between positioning & targeting
Select Customers to Serve
Segmentation
Targeting
Dividing the total market into smaller segment
Segmentation
Selecting the segment or segments to enter
Targeting
Decide on a value proposition:
Differentiation
Positioning
Differentiate the market offering to create superior customer value
Differentiation
Position the market offering in the minds of target customers
Positioning
Create value for targeted customers
Segmentation
Targeting
Differentiation
Positioning
Segmenting is not an aggregating process
TRUE OR FALSE
FALSE
Too Much Combining Is Risky
TRUE OR FALSE
TRUE
Segmenters Doesn’t Try to Satisfy “Very Well”
T OR F
FALSE
Segmenting May Produce Bigger Sales Than Combining
T OR F
TRUE
Combiners Try to Satisfy “Pretty Well”
T OR F
TRUE
Profit Is the Balancing Point
T OR F
TRUE
Needs, benefits sought, rate of use, purchase situation and more
Behavioral
Country, region, city, size of city, urban/rural
Geographic
Income, gender, age, marital status, occupation, social class and more
Demographic
is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
competitive advantage
The process of marketing strategy planning is about
narrowing down possible market opportunities to the most attractive ones.
Manufacturer, service provider, government agency, wholesaler, etc., are designations used to segment business and organizational markets according to
type of customer
Which is the first step in market segmentation?
naming a broad product-market of interest to the firm.
