Chapter 7 Flashcards
What is differentiation?
Differentiating the market offering to create superior customer value.
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
What is a product position?
The way a product is defined by consumers on important attributes, the place it occupies in consumers’ minds relative to competing products.
What are perceptual positioning maps and what are the 3 steps?
These show consumer perceptions of their brands in contrary with those of competing products on important buying dimensions. They would differentiate and position these 3 tasks:
1. Identifying possible value differences and competitive advantages, (such as lower prices or providing more benefits that justify higher prices.)
2. Choose the right competitive advantage by deciding how many differences to promote and which differences to promote. This is the following criteria to make it worth promoting:
- Important
- Distinctive
- Superior
- Communicable
- Preemptive
- Affordable
- Profitable
3. Selecting a positioning strategy. A mix of benefits on how its positioned, which is known as “the brands value proposition”.
Draw the value proposition matrix
(Price)
More The Same Less
More
More for More for. More for
More. The same Less
(Benefits)
The same (N/A) (N/A) The Same
For less
Less. (N/A) (N/A) Less for much
Less
Market Segmentation
This involves diving a market into distinct groups of buyers who have different needs, characteristics, or behaviors who might require separate marketing strategies or mixes.
What are the 4 types of market segmentation?
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Geographic Segmentation
Where a market is divided into several different geographical units, such as, countries, county’s, nations, states, regions, cities, or even neighborhoods.
Demographic Segmentation
Where a market is divided into segments based on variables such as age, life-cycle stage, gender, income, occupation, religion, ethnicity, and generation.
Psychographic segmentation
Where a market is divided into different segments based on lifestyle or personality characteristics.
Behavioral Segmentation
Where a market is divided into different segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
What is inter market or cross-market segmentation?
This is where there are segments formed of consumers who have similar needs and buying behaviors even though they are located in a different country. Key factors which need to be measured include: Measurable, Accessible, Substantial, Differentiable, Actionable, etc…
