Week 5 - Customer driven marketing strategy

Question 1

define market segmentation

Answer 1

Dividing a market into distinct groups of users who have different needs, characteristics or behaviours and who might require seperate products or marketing programs

Question 2

define target marketing

Answer 2

process of evaluating each target markets attractiveness and selecting one or more segments to enter

Question 3

define differentiation

Answer 3

differencing the market offering to creator superior customer value

Question 4

define positioning

Answer 4

Arranging for a market offering to occupy a clear, distinct and desirable place relative to competing products in the mind of consumers

Question 5

Market segmentation can be divided into

Answer 5

geographic segment:
region
city size
density

Demographic segment:
age
income
sex
occupation

Physiographic segment:
values/attitudes
personality
socioeconomic

Behavioural segment:
purchase occasion
benefits sought user status
loyalty status

Question 6

define geographic segment

Answer 6

dividing the market into different geographical units such as nations states local and neighbourhoods

Question 7

define demographic segmentation

Answer 7

dividing the market into segments based on ages, gender, income, occupation, education

Question 8

Define psychgraphic segmentation

Answer 8

dividing a market into different segments based on social classes, lifestyle or personality characteristics

Question 9

define behavioural segment

Answer 9

dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item

Question 10

define intermarket segmentation

Answer 10

forming segments of consumer who have similar needs and buying behaviour even though they are located in different countries

Question 11

requirements for effective segmentation

Answer 11

SAAD

Accessible - able to be reached and severed

Sustainable - segment size is profitable (viable)

differentiable - segments are conceptually different and respond differently to different marketing mix

actionable - effective programs can be designed to serve segments

Question 12

explain different market targeting strategies:

Answer 12

undifferentiated (mass) marketing - market coverage strategy in which firms decide to ignore market segment differences and produce one product
e.g. water

differentiated marketing - market coverage strategy in which firms decide to target several market segments and design different offer for each
e.g. nike

Concentrated marketing - Market coverage strategy in which firms goes after a large share of one few segments
e.g. rolex

Micro marketing - practice of tailoring products and marketing programs to needs and wants of specific individuals and local consumer

Question 13

explain the common stages of differentiation and positioning

Answer 13

Identifying a set of differentiating competitive advantages

choosing the right competitive advantages

select overall position strategy

develop a position statement

Question 14

define competitive advantage

Answer 14

advantage over competitors gained through lower prices, or more benefits

Question 15

define value proposition

Answer 15

full positioning of brand - the full ix of benefits upon which it is positioned
e.g. more for more..

Question 16

types of value propositions

Answer 16

more for more
same for less
less for less
more for less

Question 17

define positioning statement

Answer 17

A statement that summarises company or brand positioning - To (target segment) desiring (need) our (brand) is (concept) the (point of difference)

communicating the positioning statement:
All the company’s marketing mix efforts must support the positioning strategy