chapter 6 Flashcards
Customer value driven marketing strategy
- Marketing segmentation
- Market targeting
- Differentiation
- Positioning
Market segmentation
The act of dividing market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies
Market targeting
evaluates each market segment’s attractiveness and selects one or more segments to serve
Differentiation
Involves actually differentiating the market offering to create superior customer value
Postitioning
Consists of positioning the market offerings in the minds of target customers
Major consumer marketing segmentation variables
- demographic
- psychographic
- geographic
- behavioral
Demographic segmentation
Market is divided into distinct groups based on age, income, occupation, and gender
Psychographic segmentation
Market is divided into different groups based on social class, lifestyle, or personality characteristics
Geographic segmentation
Market is divided into distinct groups based on variables including nations, cities, countries, and states
Behavioral segmentation
Market is divided into groups based on variables such as knowledge, attitudes, and responses concerning a product
Once a company has decided which segments to enter, it must decide on its differentiation and positioning strategy which consist of these three steps…
- Identify a set of possible differentiations that create competitive advantage
- Choose advantages on which to build a position
- Select an overall positioning strategy
The brands full positioning is called its value proposition…the full mix of benefits on which the brand its positioned
Companies choose from 5 winning value propositions
- more for more
- more for the same
- the same for less
- less for much less
- more for less
