Ch 8 Flashcards
What are the two steps of targeting?
3: evaluate segment attractiveness
4: select target market
What are the two steps of segmentation?
1: strategy or objectives
2: segmentation methods
What is the one step of positioning?
5: identify and develop positioning strategy
What’s an example of step 1, establishing an overall strategy or objective?
Coke to increase sales in nature industry, coke zero for health conscious men
What are the segmentation methods?
Geographic: where they live Demographic: age, gender, income Psychographic: describe themselves Geodemographic: geo, demo, lifestyle Benefit: benefits from products Behavioral: how they use product --Occasion: when product bought --Loyalty: loyalty initiatives
What are self values?
Goals for life
What is a self concept?
Image people have of themselves
What is lifestyles?
Component of psychographic, hoe people live
What is VALS?
Most widely used psychographic tool used
Enables firms to identify target segments
What are the five ways to evaluate a segments attractiveness?
Identifiable- who is in market Substantial- size of market Reachable- must be accessible Responsive- react similarly Profitable- segment size x segment adoption percentage x purchase behavior x profit margin percentage -fixed costs
What are the four targeting strategies?
Undifferentiated/mass
Differentiated-different offerings for each market segment
Concentrated- single target market
Micro marketing- individual
What is the value proposition?
Unique
Where what customer needs and wants overlaps with what the company is offering, ideally where competitive offering doesn’t overlap
What is a perceptual map?
Positions of products or brands in the consumers mind
