Unit 4: Building Marketing Strategy Through Segmentation & Targeting Flashcards
________________________ is a process by which all potential buyers are divided into groups that have different wants, needs, behavior, cost sensitivities, and other factors that require variations in the marketing mix (4Ps)
market segmentation
Streaming services have been using technology to take the practice of segmentation even further by allowing each individual to create the mix of artists and genres they desire. This extreme form of segmentation is often, paradoxically, referred to as ________________ or, more intuitively, one-to-one marketing through the ability of the customer to personalize/customize the offering.
mass customization
The Ansoff Matrix is a strategic opportunity matrix that matches…
products (or offerings, including services, more generally) with markets
The Ansoff Matrix has four sections:
Market Penetration –>
Market Development
Product Development
Diversification
serving more customers within the current customer segments with more of the same offerings
The Ansoff Matrix has four sections:
Market Penetration
Market Development –>
Product Development
Diversification
serving new customer segments with the same offerings the organization already produces
The Ansoff Matrix has four sections:
Market Penetration
Market Development
Product Development –>
Diversification
serving the current customer segments with new offerings that the organization could potentially build and offer
The Ansoff Matrix has four sections:
Market Penetration
Market Development
Product Development
Diversification –>
serving new customer segments with new offerings
The ____________________ is often used by managers to predict future cash contributions for strategic business units (SBUs) by plotting the current performance of the organization’s offerings in the market place based on two primary metrics
Boston Consulting Group’s Matrix
______________, which represents the percentage of market share that the offering captures in a given market relative to the market share of other offerings in the organization’s portfolio.
Relative Market Share
The vertical axis separates the analysis grid into “High” and “Low” _______________, which represents current rate of growth for the market in which that offering is sold.
Market Growth Rate
_______ are offerings that are capturing a relatively high percentage of the market share in a high-growth (i.e., growing quickly) market. We want to invest resources to keep building our success with these offerings.
Stars
____________ are offerings that are capturing a relatively high percentage of the market in a low-growth (i.e., not growing quickly) market. We only want to invest in these offerings to maintain market share (no big investments, since the market is growing slowly or, at times, not at all) and then use the revenue (cash) generated from the sales of these offerings to invest in the offerings that are in high-growth markets
Cash Cows
_____________ are offerings that are capturing a relatively smaller percentage of the market share, but are in a high-growth market. We would like to invest very carefully into these offerings
Question Marks
_____________ are offerings that are capturing a relatively smaller percentage of the market share and are in low-growth markets. Typically, we want to abandon (close down or “divest”) these offerings so that we can use resources to invest in other high potential offerings
Dogs
According to Ansoff’s Strategic Opportunity Matrix, which of the following provides the highest potential reward for the organization for creating future revenue streams?
Diversification
According to Ansoff’s Strategic Opportunity Matrix, which of the following provides the lowest potential reward for the organization for creating future revenue streams?
Marketing Penetration
Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern from outside critics would be an example of a(n):
threat.
Walmart can achieve a _____ using its relationships with suppliers to create an advantage that, ultimately, allows it to give customers low prices and good customer service.
cost competitive advantage
Arizona Tea, marketed by Vultaggio & Sons, took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:
a product differentiation competitive advantage.
Mojang Studio, creator of the very successful Minecraft game, has developed many other games you may not have heard of. Computer gaming companies often develop hundreds of games before gaining one successful game. It’s not always easy to spot the future success and this can result in potentially wasted funds. Mojang Studio released Minecraft Dungeons in 2020 as their latest product. Given that Minecraft Dungeons is in the high growth market of “sandbox” electronic games, but has yet to capture much relative market share, within which quadrant of the BCG matrix does their latest release lie?
Question Mark
SWOT
also known as a situation analysis. It provides an internal look into the firm’s strengths and weaknesses, as well as an external look at their opportunities and threats.
Characteristics of a useful segmentation:
identifiable, substantial, accessible, stable, differentiable, and actionable
