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49 Cards in this Set
- Front
- Back
Market Segmentation
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Dividing a market into smaller groups with distinct needs, characteristics or behavior that might require separate marketing strategies or mixes
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Market targeting
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The process of fevaluatin each market segment's attractiveness and selecting one ore more segments to enter
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Differentiation
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Actually differentiating the market offering to create superior customer value
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Review fig. 7.1
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pg. 192
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Positioning
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Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to the competing offers IN THE MINDS of the target consumers
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Marketing boils down to two questions
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1. Which customers will we serve
2. How will we serve them |
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Geographic Segmentation
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Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhodds
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Demographic Segmentation
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dividing the market into groups based on variable such as:
Age Gender Family size family life cycle income occupation education religion race generation nationality |
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Age and Life-cycle segmentation
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dividing a market into different age and life-cycle groups
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Gender Segmentation
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Dividing a market into different groups based on gender
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Income Segmentation
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dividing a market into differnt income groups
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Psychographic Segmentation
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Dividing a market into different groups based on:
Social class lifestyle personality characteristics People in the same deographic group can have very different psychographic makeups Marketers also use personality variables to segment markets |
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Behavioral Segmentation
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Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.
Many marketers believe that behavior variables are the best starting point for building market segments |
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Occasion Segmentation
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dividing the market into groups according to occasions when buyers get the idea o buy, actually make their purchase or use the purchased item
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Benefit Segmentation
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dividing the market into groups according to the different benefits that consumers seek from the product
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User Status
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<b>Non-users</b>
Ex-Users Potential Users First-time Users Regular users reinforce regular users attract non-user , and reinvigorate relationships with ex-users |
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Usage Rate
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Heavy users are often a small % of the market but account for a high % of TOTAL consumption
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Loyalty Status
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loyal to brands, stores, companies
differing degrees of loyalty to each |
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A company can learn a lot by analyzing loyalty patterns in its market. It should stat by studying its own loyal customers
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by looking at customers who are shifting away from its brand the company can learn about its marketing weakness
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Marketers often use mulitple segmentation bases in an effort to identify smaller, better-defined target groups
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One of the leading segmentation systems in the PRIZM NE system by Claritas
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In evaluating different market segments a firm must look at 3 factors
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Segment Size & Growth
Segment structural attractiveness Company objectives and resources |
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Company also needs to examine major structural factors
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that affect long run segment attractiveness.
The existence of many atual or potential substitute products may limit prices an the profits that can be earned in a segment <b>Relative Power of Buyers</b> affects segment attractiveness A segment may be less attractive if it contains <b>powerful suppliers</b> that can control prices or reduce quality |
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A company should enter only segments in which it can create superior customer value and gain advantages over competitors
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true
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Target Market
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A set of buyers saring common needs or characteristics that the company decides to serve.
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Undifferentiated (mass) marketing
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A market coverage strategy in which a firm decies to ignore market segment differences and go after the whole market with one offer
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**Fig. 7.2
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Marketing Targeting Strategies
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Differentiated (segmented) marketing
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A market coverage strategy in which a firm decides to target SEVERAL market segements and designs separate offers for each.
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Concentrated (niche) marketing
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A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
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Micromarketing
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The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups includes lobal marketing and individual marketing
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Local marketing
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tailoring brands and promotions to the needs and wants of local customer groups--cities, neighborhoods, and even specific stores
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Individual Marketing
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one to one marketing
customized marketing |
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Product Position
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the way the product is define by tconsumers on important attributes the place the product occupies in CONSUMERS MINDS relative to competing products
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To simplify the buying proces, consumers organize products, services, and companies into categories and position them in their minds.
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Consumers position products with or without the help of marketers
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Perceptual Positioning Maps
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shows consumer perceptions of their brands versus competing products on important buying dimensions.
2 Dimensions Price Orientation |
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A brand's positioning must serve the needs and preferences of well defined target markets
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The differentiation and positioning task consists of three steps
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To find points of differntiation, marketers must think through the customer's entire experience with the company's product or service
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It can differentiate along the lines of:
Product services channels people image |
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read pg. 213
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now!
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Companies should aggressively promote only one benefit to the target market
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Unique selling propositions (USP)
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Which Differences to Promote
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Not all brand differences are meaningful or worth while not every difference makes a good differentiator.
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A difference is worth establishing to the extent that it satisfies the following criteria
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<b>Important</b>:
the difference delivers a highly valued benefit to target buyers. <b>Distinctive</b>: Competitors do not offer the difference, or the company can offer it in a more distinctive way. <b>Superior</b>: The difference is superior to other ways that customers might obtain the same benefit. <b>Communicable</b>: The difference is communicalbe and visible to buyers <b>Pre-emptive</b>: Competitors cannot easily copy the difference <b>Affordable</b>: Buyers can afford to pay for the difference <b>Profitable</b>: the company can introduce the difference profitably |
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Value Proposition
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The full positioning of a brand--the full mix of benefits upon which it is positioned
answers "Why should I buy your brand" |
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Know Fig. 7.4
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Benefit x Price Value Prop Matrix
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5 winning value props upon which companies can position their products
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Write out Matrix--work through it.
More for More More for the same More for the less The same for less Less for much less |
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More for More
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often the price difference exceeds the actual increment in quality.
invovles prividing the most upscale product or service and charging a higher price to cover the higher costs |
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More for the same
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introducing a brand with comparable quality but lower price
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The same for less
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powerful because everyone likes a good deal.
offer many of the same brands as department stores and specialty stores but at a deep discounts based on superior purchasing power and lower-cost operations |
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Less for much less
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in many cases consumers will gladly settle for less than optimal performance or give up some bess and whistles for lower price
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Positioning Statement
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A statement that summarizes company or brand positioning--it takes this form:
To (target segment and need) <b>Our</b> (brand) <b>Is</b> (concept) <b>That</b>(point-of-difference) |
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Positioning first states the product's membership in a category and then shows its point of difference from other members of the category
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true
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