chapter 7 Flashcards
(46 cards)
1
Q
State the four major steps in designing a customer-driven marketing startegy
A
- segmentation
- targeting
- differentiation
- positioning
2
Q
Explain the customer-driven marketing strategy
A
- selecting the customer to serve
- segmentation: dividing total market into smaller segments
- targeting: select the segment or segments to enter - Decide on a value proposition
- differentiation: differentiate market offering to create superior customer value
- positioning: position in market offering in minds of target customers.
3
Q
define market segmentation
A
dividing market in smaller segments with distinct needs, characteristics or behaviour that might requiire different marketing startegies.
4
Q
types of market segmentation
A
- segmenting consumer markets
- segmenting buisness markets
- segmenting international markets
5
Q
How to segment consumer markets
A
- geographic segmentation
- demographic segmentation
- physychographic segmentation
- behavioral segmentation.
6
Q
define geographic segmentation
A
- dividing market based on different geographic nations, regions, states, cities, countries.
7
Q
define demographic segmentation
A
- dividing market based on age, and life-cycle, gender, income.
8
Q
define psychographic segmentation
A
- dividing market based on social class, personality characetristics.
9
Q
define behavioral segmentation.
A
- dividing market into segments based on consumer knowledge, attitudes, uses of product.
- ocassions–> when customer get idea to buy
- benefits sought–> finding major benefits people look for in a product class..
- user status
- usage rate: light, medium or heavy product users.
10
Q
types of segmentation analysis
A
- multiple segmentation–> used to identify smaller, better-defined target groups.
- Experian mosaic USA–> classifies U.S. households into one of 71 lifestyle segments and 19 levels of affluence.
11
Q
adittional variables used to segment buisness markets
A
- size
- purchasing approches–> key accounts, national accounts
- situational factors
- personal characterostics
12
Q
characteristics of segmenting buisness markets
A
- Segmenting B2B is different
- B2B markets have multiple decision-makers
- B2B products and services are often more complex
- B2B decision-makers go through a more rational process
- The buying cycle is different
- B2B target audiences are smaller
- Personal relationships matter more
13
Q
How are buisness markets segmented
A
14
Q
define international market segmentation
A
- forming segments of consumer with similar needs, buying behaviours even if they are located in different countries.
15
Q
How are international markets segmented
A
- geographic location–> grouping countries by regions such as Western Europe, the Pacific Rim, the Middle East, or Africa.
- economic factors–>grouping countries by population income levels or by their overall level of economic development.
- political and legal factors–> types and stability of the goverment
- cultural factors–> language, religion, values.
15
Q
requirements for effective segmentation
A
- measurable
- accesible
- substantial
- differentiable
- actionable
16
Q
what are the benefits from effective segmentation
A
- strong marketing activites
- identify most effective marketing tactucs
- design hyper-targeted products and ads
- differntiate from competitors
- niche market opportunities,
17
Q
process of market targeting
A
- evaluate market segments
- select target market segments
17
Q
define target market
A
- set of buyers with common needs, characteristics a company decides to serve.
- actual customer gorup buisness will attempt to sell its products and services
18
Q
factors to consider when evaluating market segments
A
- segment size and growth
- segment structural attractiveness: strong and aggressive competitors, new entrants, substitute products, power of buyers, powerful suppliers.
- companys objectives and resources
19
Q
Describe marke targeting
A
- target broadly–> undifferentiated marketing
- target narrowly–> micromarketing
- in between–> differentiated, concentrated
20
Q
Types of market targeting
A
21
Q
define undifferentiated marketing
A
- targets whole market
- mass market
- common needs
22
Q
define differentiated marketing
A
- targeting several market segments
- more expensive
23
define concentrated marketing
- targets a large share of a smaller market
- meeting unque needs of niche market
- limited resources
- more effective and efficient
24
what makes a niche market
- demographics
- geographical
- psychographics
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advantages of niche marketing
- improved customer relationships: since the type of group is smaller, buisnesses can get to know their customers on an individual level.
- reduced competition--> few companies offering product
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disadvantages of of niche marketing
- survival chances may decrease
- might not work long-term
27
define micromarketing
- producing products and marketing programs that suit specific individuals and locations
LOCAL MARKETING
INDIVIDUAL MARKETING
28
define local marketing
meeting needs and wants of local customer groups- cities, neighborhoods, stores.
29
define individual marketing
- tailor products and mkt programs to specific needs of individual customers.
- one-to one marketing
30
choosing target markets depends on:
- resources--> limited reopurcesn then undifferentiated marketing is more suitable
- product variability
product-life-cycle stage
- competitors marketing startegies
- market variability--> little mkt variability--> using undifferentiated marketing
31
define product positioning
- way product is defined by consumers on important attributes.
- what you do to the mind of the prospect
32
what does unique selling proposition mean?
- beenfits that are only offered by your product-no one else.
being unique in the customers mind
33
how to choose a differentiation and positioning strategy
- determine competitive frame of reference by choosing a target market + identify competition.
- identify points of parity and points of difference
34
how to define a frame of reference
- define target consumer
- who are the competitors
- how brand is similar to competitors (POP)
- how brand is different from them (POD)
35
define frame of reference
how a new product, service, or concept is seen by the target market.
36
POPS vs PODS
POPS--> points of parity is how similar a brand is to competitors
PODS--> points-of difference is the attributed that consuemrs associated with brand and cant be found in other brands.
37
what is a positioning statement
- summarises a brand positioning
- uses this form--> target segment/need, our (brand) is (concept), that (point of difference)
37
communicating and delivering chosen position
- easier to choose than implementing
- maintaining position requires consistence performance and communication
- must be monitored and adapted over time.
38
define positioning maps
- show consumer perceptions of market brands vs competing products
39
define competitive advantage
- advantage over competitors by offering consumers greater value.
40
A competitive advantage should be
- important
- distinctive
- superior
- communicable
- preemptive
- affordable
- profitable
41
define value proposition
full mix of benefits in which brand is positioned and differentiated.
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