Chapter 6 Flashcards
to understand (17 cards)
Define the marketing decisions;
market segmentation
market targeting
market differentiation
market positioning
M.S - analysis of how a market is naturally broken into distinct groups of buyers who have different needs, characteristics and behaviors therefore may require tailored products or marketing programs/ marketing mixes .
M.T the process of evaluating each market segment attractiveness and selecting one or more segments to enter.
M.D differentiating between the companies market offering from that offered by competitors to create superior costumer value.
M.P arranging for a market offering to occupy a clear, distinctive and desirable place in the the minds of target consumers relative to competing products.
What are the Two groups that are used for designing a consumer-driven marketing strategy
Select customers to serve
Decide on value positioning
Which Two decisions belong under “Select costumers to serve”
segmentation
targeting
Which Two decisions belong under “decide on value proposition”
differentiation
positioning
what are the main 4 segmentation markets
consumer
business
international
effective
What are the main variables in consumer market segmentation
geographical
demographic
psychographic
behavioral
What is geographical segmentation
when the market is divided into different geographical units such as nations, regions, states, local government areas, cities or neighborhoods
What is demographic segmentation
when the market is divided into different demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race generation and nationality
What is psychographic segmentation
when the market is divided into different groups biased on groups such as lifestyle, social class or personality characteristics
What is behavioral segmentation
when the market is divided into groups biased on consumers knowledge, attitudes, uses or responses to a product
how do is business marketers use segmentation
by looking at;
business consumer demographics (industry, company size)
operating characteristics
purchasing approaches
situational factors
personal characteristics
what is effectiveness of segmentation depend on
the factors for effectiveness are;
measurable
accessible
substantial
differential
actionable
How does a company target best marketing segments
first evaluates each segments size/growth characteristics, structural attractiveness and compatibility with company objectives and resources to implement
niche marketing which focuses on either one or a small amount of the market segments or
marketing which is tailoring the product to suit the tastes of specific individuals and locations
the seller can however ignore segment differences and target broadly undifferentiated marketing. this involves mass producing, distribution, promoting the same product in much the same way to all consumers
What must a company decide to do once it selects the segment it wants to enter
the differentiation and positioning strategy
what are the three steps of the differentiation and positioning strategy
step 1: identifying a set of possible differentiations that create competitive advantage
step 2: choosing advantages upon which to build a position
step 3 selecting an overall positioning strategy
what is a brands full positioning called?
value propositioning
describe value propositioning
the full mix of benefits upon which the brand is poitioned
companies can choose on of 5 options;
more for more
more for the same
the same for less
less for much less
more for less
company/brand positioning are summarised in positioning statements that state the target segment and need, positioning concept and specific points of difference. the company must then effectively communicate and delver the chosen position to the market
