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Customer, markets and firm strategy > Lecture unit 03 - Customer-cenntric marketing strategy > Flashcards

Lecture unit 03 - Customer-cenntric marketing strategy Flashcards

1
Q

What is marketing strategy?

A
  • is the overall game plan for reaching prospective leads and
  • turning them into customers of the products or services a business offers
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2
Q

What are the key steps in the marketing process overview?

A
  • Analysis: 5 C Analysis: –>Understand value
  • Strategy: Segmentation & Targeting –>Create value
  • Plan: –>Delivering value

–>Monetazitation

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3
Q

What is a market segment?

A

= A market segment consists of consumers who respond in a similar way to a given set of marketing eefects

–>Companies should foucs their efforts on meeting distinct needs of individual segments

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4
Q

How is market segmentation defined?
And what are the different ways consumers can be grouped?

A

Dividing a market into distinct groups of buyers with different needs, characteristics

Ways:

  • Geographic: Country, City
  • Demographic: Gender, Age, Household income
  • Psychograpic: Lifestyle, Traits
  • Behavioral: Price sensitivity
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5
Q

What are the criteria for effective segmentation?

A
  • Measurable -> data is available
  • Accessible -> people can be reached
  • Profitable -> include segment margins, is segmentation profitable ?
  • Differentiable -> are segments different?
  • Actionable -> do we get different responses from the segments

+ aligned with corporate strategy

+ provide value to business

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6
Q

What are the strategies recommended by Kotler’s Model of Segmentation Alternatives ?

A
  • One-segment concentration
  • Selective specialization,
  • Market specialization
  • Product specialization
  • Full market coverage
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7
Q

What is one-segment concentration? (Kotler’s Model of Segmentation Alternatives)

A

Concentrate in one market segment and target it with one product or service

Example: Rolex

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8
Q

What is selective specialization strategy? (Kotler’s Model of Segmentation Alternatives)

A

Reach out to different segments with different products

Example: P&G

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9
Q

What is market specialization strategy? (Kotler’s Model of Segmentation Alternatives)

A

Concentrate in one market segments and provide a pool of products and services that cover the different needs the segment has

Example: Lorial Paris

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10
Q

What is product specialization strategy? (Kotler’s Model of Segmentation Alternatives)

A

Offer one product that is adapted to the specific requirements of each segment

Example: Mercedes Benz: G-Wagon, Transpoerter, A1, Limousine

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11
Q

What is the full market coverage strategy? (Kotler’s Model of Segmentation Alternatives)

A

Cater the entire market in a differentiated or undifferentiated way

Example: Dell –>Differentiated
Coca Cola –>undifferentiated

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12
Q

What are the 3 questions important for segmentation?

A
  • How far do we go with segmentation?
  • What is the right level of segmentation?
  • How can the ROI and benefit be optimized?
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13
Q

When does segmentation not make sense?

A

when:
- room for segmentation is limited
- customers have homogenous preferences

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14
Q

Why is segmentation important? regarding customers?

A
  • to offer customers exactly what they want based on their needs
  • to be able to differentiate against competition
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15
Q

What does segmentation also imply?
(Disadvantages of segmentation or issues)

A
  • additional production costs
  • Commercialization costs
  • Tradeoff: benefits vs. costs
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16
Q

What is targeting?

A

Targeting is the decision of a company about which segment to address and in which way

17
Q

What does targeting require?

A
  • Segment to address
  • Targeting Strategy
  • Further company- and market
    related decision criteria
18
Q

To determine who to address: On what do we assess the market segments?

A
  • Segment size and growth
  • Segment structural attractiveness (competition, substitutes, power of buyers/suppliers)
  • Company´s long-term objectives and resources
19
Q

TO determine how to address –>Companies can follow different strategies:
What are the targeting strategies?

also explain

A
  • Undifferentiated Marketing: Marketing Mix target total market
  • Differentiated Marketing: Different marketing mix for each segment
  • Concentrated (Niche) Marketing: Only focus marketing mix on one segment or a few
  • Micromarketing: Different marketing mix for each individual
20
Q

Factors to consider when choosing a target marketing strategy?

A
  • COmpany resources
  • Market visibility
  • Degree of product variability
  • Product life-cyle
  • Competitor´s marketing strategy
21
Q

What is differentiation and what is the goal?

A

= is the provision [Bereitstellung] of a product with a pool of attributes/values that make it perceived as something different than others

Goal: provided a product to the customer in a more convenient way than competition

22
Q

What are the two levels of differentiation?

A
  1. Among competitors offering similar products
  2. Among different products that the same manufactures is selling to different market segments
23
Q

What are the different differentiation strategies?

A
  • Product attributes
  • Associated services
  • Staff & employees
  • Research & development
  • Brand image
24
Q

What is the value proposition?

A

= comprises of the differntiated attributes of a brand/product and the set of benefits that the firm promises to deliver

25
Q

What are the factors important for defining the value proposition? (And their meaning`?)

A

Frame of Reference: Defines the market where to compete
- Consider customer behavior, context, strength and weaknesses of the company

Point of Parity:
- Those points perceived by the customers that are in common with the other products in the category

Point of Difference:
- Advantages or attributes perceived as superior to the ones from competition

26
Q

What is market positioning?

A

is the process of aligning the company´s offering (value proposition) to serve a chosen segment (segmentation and targeting)

Segmentation&Target < positioning > Value proposition

27
Q

What is the goal of posiitioning?

A

Goal: occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

28
Q

What is a positioning statement?

A
  • it is a brief and consice description about who the target group is and the competitive advantage over the competition
29
Q

What are the characteristics of a positioning statement? (What should the statment?)

A
  • be easy and simple to remebter
  • include a clear frame of references
  • be flexible enough to accomodate potential change
  • be clearly oriented towards the target group
  • Contain a value proposal that is credible, relevant and unique for that target group
30
Q

What should the positioning statement include?

A
  • market segment
  • value proposition
  • frame of reference
31
Q

What is reverse positioning?

A
  • takes out some attributes from the value proposition
  • adjusted value proposition sticks to what the customer is looking for & makees the company more competitive
32
Q

What is the break-away positioning? –>What are the 2 competitive situation?

A

´Red ocean:
- higher value goeas hand in had with a higher cost and price

  • lower value will lead to lower cost & price

Blue ocean:
- the existing competition is not taken as a valid reference

  • go beyond and reach out to a different market, subject to different rulles
  • focus is place on innovation
33
Q

What are market trends that impact positioning?

A
  • Hyper competition: globalization and wold trade have grown a lot
  • Trading up and down: customers feel uncertain about the future, because of the lerning process in the past
  • Access to information and internet: easier to understand marketing trends
  • New generations: main concerns, new consumption pattern and different expectations
  • Long tails: consequence of e-commerce that permits to cover market niches in an efficient and profitable way

Customer, markets and firm strategy (20 decks)

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