Lesson 5 Flashcards
(35 cards)
means looking at each group to see which ones are the most appealing and then choosing which ones to focus on.
Market Targeting
means breaking a market into smaller groups of people who may need different products or marketing strategies.
Market Segmentation
means creating a clear, unique image of the product in the customer’s mind and choosing the right way to promote it.
Positioning
Bases for Segmenting a Market:
Geographic Segmentation
Behavior Segmentation
Psychographic Segmentation
Demographic Segmentation
means grouping people based on what they know about a product, how they feel about it, how they use it, or how they respond to it.
Behavior Segmentation
means dividing people based on their social class, lifestyle, or personality.
Psychographic Segmentation
means dividing the market by age, gender, income, job, education, religion, race, or nationality.
Demographic Segmentation
means dividing the market based on location
Geographic Segmentation
Can we create useful strategies to attract and serve this group?
Actionability
Requirements for Effective Segmentation:
Substantiality
Actionability
Accessibility
Measurability
– Is the group big or profitable enough to be worth serving?
Substantiality
– Can we reach and serve this group?
Accessibility
– Can we measure how big the group is and how much they can spend?
Measurability
This strategy ignores differences between customer groups and targets the whole market with one single offer.
Undifferentiated (Mass) Marketing Strategy
The company targets several different groups of customers and creates a specific offer for each group.
Differentiated (Segmented) Marketing Strategy
This is good for companies with limited money or resources. Instead of trying to get a small part of a big market, they aim to get a big part of a smaller, specific market.
Concentrated (Niche) Marketing Strategy
This means customizing products and marketing for specific people or places.
Micromarketing (Local or individual marketing)
– This means adjusting brands and promotions to fit what local customers want in a specific city, neighborhood, or location like a restaurant, hotel, or store
Local Marketing
Choosing a Market-Coverage Strategy:
Degree of product homogeneity
Market homogeneity
Company resources
– How much money, staff, and tools the company has
Company resources
– How similar or different the product is from others
Degree of product homogeneity
– How similar the buyers are in their needs and wants
Market homogeneity
– Making a product stand out from others
Product Differentiation
A product’s position is how customers see the product in their minds, especially compared to other products.
Market Positioning
