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week 6
segmentation, targeting, and positioning
32
Marketing
Undergraduate 1
11/07/2015

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Cards

Term
what are the 3 stages in market orientation
Definition
1. mass marketing
2. product variety marketing
3. target marketing
Term
mass marketing
Definition
the seller mass produces, distributes, and promotes to all buyers
Term
product-variety marketing
Definition
seller produces two or more products that have different features, styles, etc.
Term
target marketing
Definition
the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each.
Term
what are the 3 major steps in target marketing?
Definition
1. market segmentation
2. market targeting
3. market positioning
Term
market segmentation
Definition
dividing a market into distinct groups of buyers with different needs, characteristics, etc. who might require separate products or marketing mixes
Term
market targeting
Definition
evaluating each market segment's attractiveness and selecting one or more of the market segments to enter
Term
market positioning
Definition
setting the competitive positioning for the product and creating a detailed marketing mix
Term
why segment
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
Term
6 steps in segmentation, targeting, and positioning
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
Term
step 1: identify bases for segmentation
Definition
1. demographic
2. geographic
3. behavioural
4. psychographic
Term
psychographic segmentation
Definition
buyers are divided into different groups based on socioeconomic status, lifestyle, or personality characteristics
Term
behavioural segmentation
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
Term
types of behaivoural segmentaion
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
Term
step 2: develop profiles of segments
Definition
create a profile for the average member of a particular segment
Term
what are the requirements for effective segmentation?
Definition
1. actionable
2. measurable
3. accesible
4. substantial
5. sustainable?
Term
segment measurability
Definition
the degree to which the size and purchasing power of the segment can be measured.
Term
segment accessibility
Definition
the degree to which the segments can be reached and served
Term
segment substantiality
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
Term
segment actionability
Definition
the degree to which effective programs can be designed for attracting and serving the segments
Term
what 3 things must be evaluated to determine segment attractiveness?
Definition
1. market size and growth
2. segment structural attractiveness
3. company objectives and resources
Term
target market
Definition
a set of buyers sharing common needs or characteristics that the company decides to serve
Term
what are the 3 market-coverage strategies?
Definition
1. undifferentiated marketing
2. differentiated marketing
3. concentrated marketing
Term
undifferentiated marketing
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.
Term
concentrated segmentation
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.
Term
multiple segmentation (differentiated)
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
Term
product position
Definition
the way a product is defined by consumers on important attributes. the place the product occupies in consumers minds relative to competing products
Term
positioning strategies
Definition
1.product class
2. product attributes
3. benefits offered
4. usage occasions
5. away from competitors
6. against a competitor
7. users
Term
perceptual mapping of positioning
Definition
uses a grid with quality and status on the y axis and service on the x axis (as one example)
Term
what are some possible areas for competitive advantage?
Definition
product, service, image, personnel
Term
A difference should be established in an effort to gain competitive advantage if it meets what criteria?
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
Term
step 6: developing a marketing mix for each target segment involves what for products vs services?
Definition
tangible products: price, place, product, and promotion
services products: process, physical evidence, people
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