Term
| what are the 3 stages in market orientation |
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Definition
1. mass marketing
2. product variety marketing
3. target marketing |
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Term
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Definition
| the seller mass produces, distributes, and promotes to all buyers |
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Term
| product-variety marketing |
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Definition
| seller produces two or more products that have different features, styles, etc. |
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Term
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Definition
| the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each. |
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Term
| what are the 3 major steps in target marketing? |
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Definition
1. market segmentation
2. market targeting
3. market positioning |
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Term
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Definition
| dividing a market into distinct groups of buyers with different needs, characteristics, etc. who might require separate products or marketing mixes |
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Term
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Definition
| evaluating each market segment's attractiveness and selecting one or more of the market segments to enter |
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Term
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Definition
| setting the competitive positioning for the product and creating a detailed marketing mix |
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Term
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Definition
customers have different needs for the same product
focus efforts on most profitable target markets
better understand consumer differences and needs
too expensive to customize products for each consumer
identify opportunities/gaps in market
help marketing mix development
tailor promotion message
allocate advertising budget batter |
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Term
| 6 steps in segmentation, targeting, and positioning |
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Definition
1. identify bases for segmenting the market
2. develop profiles of resulting segments
3. develop measures of segment attractiveness
4. select the target segment(s)
5. develop positioning for each target segment
6. develop marketing mix for each target segment |
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Term
| step 1: identify bases for segmentation |
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Definition
1. demographic
2. geographic
3. behavioural
4. psychographic |
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Term
| psychographic segmentation |
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Definition
| buyers are divided into different groups based on socioeconomic status, lifestyle, or personality characteristics |
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Term
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Definition
| divides buyers into groups based on their knowledge of the product, their attitude towards it, the way they use it and their responses to it |
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Term
| types of behaivoural segmentaion |
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Definition
1. occasions: group customers according to the occasions when they get the idea to buy, actually make the pucahase or use the purchased item
2. benefits sought: group buyers according to the different benefits they seek from the products
3. user status: group buyers into non-users, ex-users, potential users, first time users, and regular users of a product
4. usage rate: group buyers into light, medium, and heavy user groups
5. loyalty status: divide buyers into groups according to their degree of loyalty |
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Term
| step 2: develop profiles of segments |
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Definition
| create a profile for the average member of a particular segment |
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Term
| what are the requirements for effective segmentation? |
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Definition
1. actionable
2. measurable
3. accesible
4. substantial
5. sustainable? |
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Term
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Definition
| the degree to which the size and purchasing power of the segment can be measured. |
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Term
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Definition
| the degree to which the segments can be reached and served |
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Term
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Definition
| the degree to which the segments are large or profitable enough. a segment should be the largest possible homogeneous group worth going after with tailored marketing program |
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Term
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Definition
| the degree to which effective programs can be designed for attracting and serving the segments |
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Term
| what 3 things must be evaluated to determine segment attractiveness? |
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Definition
1. market size and growth
2. segment structural attractiveness
3. company objectives and resources |
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Term
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Definition
| a set of buyers sharing common needs or characteristics that the company decides to serve |
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Term
| what are the 3 market-coverage strategies? |
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Definition
1. undifferentiated marketing
2. differentiated marketing
3. concentrated marketing |
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Term
| undifferentiated marketing |
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Definition
| all consumers have similar needs and only one product is offered. the company is trying to appeal to the largest number of buyers. while there is a major advantage in cost savings in production, promotion and products, the company is very vulnerable to competitors. |
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Term
| concentrated segmentation |
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Definition
| the company focuses its marketing mix on only one segment. this works well for limited resources in a niche market, but can be risky. |
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Term
| multiple segmentation (differentiated) |
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Definition
| the company creates a different mix for each segment. while this tactic is more expensive, it often generates more sales and is more suitable for a mature market |
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Term
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Definition
| the way a product is defined by consumers on important attributes. the place the product occupies in consumers minds relative to competing products |
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Term
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Definition
1.product class
2. product attributes
3. benefits offered
4. usage occasions
5. away from competitors
6. against a competitor
7. users |
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Term
| perceptual mapping of positioning |
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Definition
| uses a grid with quality and status on the y axis and service on the x axis (as one example) |
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Term
| what are some possible areas for competitive advantage? |
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Definition
| product, service, image, personnel |
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Term
| A difference should be established in an effort to gain competitive advantage if it meets what criteria? |
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Definition
1. Important: the difference delivers a highly valued benefit to target buyers
2. distinctive: competitors can't offer the difference at all or to the same extent
3. superior: the difference is superior to other ways that customers might obtain the same benefit
4. communicable: the difference is communicable and visible to buyer
5. pre-emptive: competitors cannot easily copy the difference
6. affordable: buyers can afford to pay for the difference
7. profitable: the company can introduce the difference profitably |
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Term
| step 6: developing a marketing mix for each target segment involves what for products vs services? |
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Definition
tangible products: price, place, product, and promotion
services products: process, physical evidence, people |
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