MKT4580 Chapter 5 Flashcards Preview

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Flashcards in MKT4580 Chapter 5 Deck (13):
1

What are the 3 Traditional Targeting Strategies

Mass Marketing
Differentiated Marketing
Niche Marketing

2

Mass Marketing is an....

undifferentiated approach that involves no segmentation. Mass marketing works best when the needs of an entire market are homogeneous, and results in lower marketing costs even though it is risky and vulnerable to competitors. (Ford Model T)

3

Differentiated Marketing involves...

dividing the total market into groups of customers having relatively common or homogenous needs and developing a strategy to pursue one or more of these groups.

4

Differentiated Marketing - Multisegment

attracting buyers in more than one segment by offering a variety of products that appeal to different needs

5

Differentiated Marketing - Market Concentration

Focusing on a single market segment and attempting to gain maximum share in that segment

6

Niche Marketing

focuses marketing efforts on one small, well-defined market segment or niche that has a unique, specific set of needs. Requires that firms understand and meet the needs of target customers so completely that the firm’s substantial share of the segment makes it highly profitable

7

Criteria for successful segmentation

Identifiable & measurable
Substantial
Accessible
Responsive
Viable & sustainable

8

Segmentation Bases

Demographic
Geographic
Psychographic
Behavioral

9

Demographic

Gender, age, occupation, education, generation, income

10

Geographic

Zip code, city, regional, population density

11

Psychographic

Lifestyle,value

12

Behavioral

Usage rate, usage occasion, price sensitivity, benefits sought

13

Consumer Decision theory

Need/problem recognition
Information Search
Alternative evaluation
Purchase
Post-purcahse behavior