Maketing Flashcards
(45 cards)
What are the 4 major steps in designig a customer value-driven marketing strategy?
- Market segmentation
- Market targeting
- Differentiation
- Positioning
Explain market segmentation
Market segmentation is dividing the total market into smaller segments
Explain market targeting
Market targeting is selecting segment(s) to enter
Explain differentiation
Differentiation is differentiating the market offering to create superior customer value
Explain positioning
Positioning is positioning the market offering in the mind of target customers
Why do we use segmentation?
We use segmentation, because we cannot afford to do what it takes to sell to everyone. Not everyone is a potential customer.
What are the segmentation bases/variables for consumer markets?
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
- Behavioural segmentation
Explain geographic segmentation
Geographic segmentation is dividing markets into different geographical units like:
- nations
- states
- regions
- counties
- cities
- neighbourhoods
Explain demographic segmentation
Demographic segmentation is dividing a market into variables like:
- age
- life stage
- gender
- income
- occupation
- education
- religion
- ethnicity
- generation
Explain psychographic segmentation
- social class
- lifestyle
- personality
Explain behavioural segmentation
- occassion segmentation
- benefit segmentation
- user status
- usage rate
- loyalty status
Explain occassion segmentation
Occassions when the buyer:
- Gets the idea to buy
- Makes their purchase
- Uses the purchased item
- part of behavioural segmentstion
How does segmenting in B2B markerts work?
Consumer & Business markets use many of the same variables for segmentation
(geographical/demographic: which industry, place, company size.)
What are the requirements for effective segmentation?
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
What are the available marketing strategies?
- Undifferentiated marketing (mass marketing)
- Differential marketing (segmented marketing)
- Concentrated marketing (niche marketing)
- Micromarketing (local & individual marketing)
Explain undifferentiated marketing
- mass marketing
- company might ignore market segment differences
- target whole market with one offer
- focus on what is common in consumer needs
Explain differentiated marketing
- Segmented marketing
- Company decides to target several market segments and designs separate offers for each
Explain concentrated marketing
- Niche marketing
- Company goes after large share of one or a few smaller segments or niches
Explain micromarketing
The practice of tailoring products & marketing programs to suit the tastes of specific individuals & local customer segments
Explain local marketing
Tailoring brands & promotions to the needs and wants of local customers
Explain individual marketing
Tailoring products and marketing programs to needs and preferences of individual customers
What are factors to consider when choosing marketing strategies?
- Company resources
- Product availability
- Product’s lifecycle stage
- Market variability
- Competitor’s marketing strategy
What are competitive advantages
- having lower prices
- providing more benefits that justify higher prices
Number of differences to promote?
- Select just one differentiator. develop USP for each brand and stick to it
- Positioning on more than one differentiator
