Chapter 6 Flashcards
What are the 4 steps needed to have a customer value-driven marketing strategy?
Market segmentation
Market targeting
Differentiation
Positioning
What is market segmentation?
Dividing the market into smaller groups of buyers with different needs, characteristics and behaviours and who might require separate marketing strategies/mixes.
What is market targeting?
Evaluating the market segments and selecting which ones to serve
What is differentiation?
Differentiating the market offering to create superior customer value
What is positioning?
Positioning the market offering in the minds of target customers
What is the goal of a customer value-driven marketing strategy?
To build the right relationships with the right customers.
What are the different variables used to segment a market?
Geographic
Demographic
Psychographic
Behavioural
What does geographic segmentation consist of?
Diving into different geographical units, like nations, regions, provinces, cities or neighbourhoods.
What does demographic segmentation consist of?
Dividing into groups based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
What does psychographic segmentation consist of?
Dividing into groups based on social class, lifestyle, or personality characteristics
What does behavioural segmentation consist of?
Dividing into groups based on consumer’s knowledge, attitudes, uses, or responses concerning a product
What variables do business marketers use to segment?
Demographics (industry, company size)
Operating characteristics
Purchasing approaches
Situational factors
Personal characteristics
What does the effectiveness of the segmentation analysis depend on?
Finding segments that are measurable, accessible, substantial, differentiable, and actionable (MASDA)
What are the factors used to evaluate which is the best market segment?
size and growth characteristics
structural attractiveness
compatibility with company objectives and resources
What are the 4 market-targeting strategies?
Undifferentiated/mass marketing
Differentiated marketing
Concentrated/niche marketing
Micromarketing
What’s mass marketing?
Mass production, mass distribution, and same marketing for all customers
What’s differentiated marketing?
Developing different market offers for several segments
What’s niche marketing?
Focusing on one or a few market segments only
What’s micromarketing?
Tailoring products/marketing programs to specific tastes of individuals and locations.
What are the two subcategories of micromarketing?
Local marketing
Individual marketing
What is local marketing?
What is individual marketing?
What are the factors to consider when choosing which market-targeting technique to use?
company resources
product variability
product life-cycle stage
market variability
competitive marketing strategies.
What are the 3 steps of the differentiation and positioning process?
identifying a set of possible differentiations that create competitive advantage
choosing advantages on which to build a position
selecting an overall positioning strategy.
