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44 Cards in this Set
- Front
- Back
Four Steps in designin a customer-driven strategy
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1. Market Segmentation
2. Market Targeting 3. Differentiation 4. Market Positioning |
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Market Segmentation
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process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
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Market Targeting
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the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
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Differentiation
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differentiating firm's market offering to create superior customer value
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Market Positioning
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arranging for product to occupy clear, distinctive, and desirable place relative to competing products in minds of target consumers
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Major bases for segmenting consumer markets
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1. Geographic segmentation
2. Demographic segmentation 3. Psychographic segmentation 4. Behavioral segmentation |
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Major bases for segmenting business markets
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1. Customer-operating characteristics
2. Purchasing approaches 3. Situational factors 4. Personal characteristics |
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Geographic Segmentation
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divided into nations, regions, states, counties, or cities
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Demographic Segmentation
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Most Popular and easiest to measure!
Divided into age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality |
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Psychographic Segmentation
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divides buyers into different groups based on social class, lifestyle, or personality traits
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Behavioral Segmentation
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divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product
Occasions Benefits sought User status Usage rate Loyalty status |
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Individual Marketing
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involves tailoring products and marketing programs to the needs and preferences of individual customers
Also known as: One-to-one marketing Mass customization Markets-of-one marketing |
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Intermarket Segmentation
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divides consumers into groups with similar needs and buying behaviors even though they are located in different countries
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Local Marketing
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tailoring brands and promotion to the needs and wants of local customer groups; cities, neighborhoods, stores
Benefits: Increased marketing effectiveness in competitive markets More customer-specific offerings Challenges: Increased manufacturing and marketing costs Less economy of scale Logistics Dilution of company image |
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Micromarketing
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tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing Individual marketing |
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Positioning Statement
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states the product’s membership in a category and then shows its point-of-difference from other members of the category.
Example: To (target segment and need) our (brand) is (concept) that (point of difference). |
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Product Position
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way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products
Perceptions Impressions Feelings |
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Undifferentiated or Mass Marketing
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targets the whole market with one offer
Focuses on common needs rather than product or consumer differences |
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Value Proposition
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the full mix of benefits upon which a brand is positioned
More for more More for the same Same for less Less for much less More for less |
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4 Consumer Product Classifications
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1. Convenience products: bought frequently, immediately, little comparison (gum,newspaper)
2. Shopping products: compared carefully on suitability, quality, price, and style (cars, furniture) 3. Specialty products: unique characteristics, brand identification (medical serv, $$$ electronics, clothes) 4. Unsought products: Life insurance Funeral services Blood donations |
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Brand
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name, term, sign, or design that defines seller
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Brand Equity
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positive differential effect that knowing the brand name has on customer response to product/service
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Brand Extension
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extending existing brand name to new product categories
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Co-Branding
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practice of using the established brand names of two different companies on the same product
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Interactive Marketing
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training service employees to interact with customers to satisfy needs
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Internal Marketing
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Orienting and motivating customer-contact employees and the supporting service people to work as team to provide customer satisfaction
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Line Extension
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Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
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Private Brand
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(store brand) created and owned by reseller of product/service
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Product Line
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group of products closely related, function in similar manner, sold to same customer groups, prices
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Product Mix
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(product portfolio) set of all product lines and items that seller offers
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Product Quality
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characteristics of product/service that bear on its ability to satisfy stated or implied customer needs
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Service
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activity or benefit offered that is intangible and does not result in ownership
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Service Inseperability
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major characteristic of services. They are bought and consumed at the same time and cannot be seperated from providers
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Service Ingangibility
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major characteristic of services. cannot be tasted, seen, felt, heard or smelled bofore they are bought
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Service Perishability
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Major characteristic of services--cannot be stored for later use/sale
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Service Variability
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Major characteristic of services--quality may very greatly depending on who provides them, when, where, and how
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Social Marketing
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use of commercial marketing concepts in programs designed to influence individuals' behavior to improve well-being of individual and society
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Product Mix Depth
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Number of versions of product offered in each product line
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Consistency
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How closely various product lines are in end use, production requirements, or distribution channels
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Brand Strategy Decisions
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Brand Positioning (attributes, benefits, beliefs, values) > Brand Name Selection (selection, protection) > Brand Sponsorship (manufacturers/private brand, Licensing, co-branding) > Brand Development (line/brand extensions, multi-brand, new brands)
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4 Major Characteristics of Services
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1. Intangibility
2. Variability 3. Perishability 4. Inseparability |
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Internal Marketing is between
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Company <--> Employee
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Interactive Marketing is between
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Employees <-->Customers
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External Marketing is between
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Company <--> Customers
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