Chapter 9 - Segmentation, Targeting, and Positioning Flashcards Preview

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Flashcards in Chapter 9 - Segmentation, Targeting, and Positioning Deck (14):
1

Undifferentiated Targeting Strategy

Focuses on similarities in needs of customers as opposed to differences

2

What is Geodemographic segmentation?

A combination of geographic, demographic, and lifestyle characteristics

3

(Segment size x Adoption percentage x purchase behavior x profit margin percentage) - Fixed costs =

Segment profitability

4

When Selecting a Target Market, which 2 assessments are made?

SWOT on attractiveness of the target market

SWOT on own competencies

5

Targeting Strategies Include

Differentiated
Undifferentiated or mass marketing
Micro marketing or one on one
Concentrated

6

What are the benefits of Differentiated Targeting Strategy

1. Helps obtain bigger share of market and increases market for products overall

2. Helps diversify the business, which lowers risk

7

This Targeting Strategy focuses all of its resources on one segment of the market

Concentrated Targeting Strategy

Entrepreneurial start ups benefit from this strategy because it allows them to employ their limited resources more effectively

8

When a firm tailors its product down to an individuals wants and needs, this is called a ______ Strategy

Micro-marketing

9

What does a Value proposition communicate?

It communicates the customer benefit to be received from a product, thereby providing reasons for wanting to purchase it

10

7 Components used in determining the value proposition

1. The firms value proposition
2. Consumers unmet needs (marketing opportunity)
3. Firms benefits that are not required
-Educate customer or redesign product
4. Key Benefits that both the firm and competitor provide that customers require
-Carefully monitor performance compared to competitor on this point
5. Competitors value proposition
-Monitor and imitate if needed
6. Benefits Both Firms provide that customers do not appear to need
7. Competitor benefits that are not required

11

Target Marketing,
Offering name or brand,
Product category or concept,
unique points of difference and benefits

are all components of _____

Value Proposition

12

4 Methods for Positioning

1. Value Proposition
2. Salient Attributes
3. Symbols
4. Competition

13

What is perceptual mapping used for?

It displays, in 2 or more dimensions, the positions of the products or brands in the consumers mind

14

What are the 6 Steps to deriving a perceptual map

The first 3 are ongoing

1. Determine consumers perceptions and evaluations of the product or service in relation to its competitors.
-Asks consumers about competitors
2. Identify the market's ideal points and size
3. Identify competitors positions
4. Determine consumer preferences
5. Select the position - Potentially develop new product, adjust and reposition its marketing approach, or ignore complications and hope consumers will be attracted to your product
6. Monitor the Positioning Strategy