Ch9 marketing
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Why is it important to ensure that segments are distinct from one another?
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Because too much overlap between segments means that distinct marketing strategies are not necessary to meet segment members' needs
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Demographic segmentation
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Groups consumers according to objective characteristics such as age, gender, income, and education
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Undifferentiated example
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Sugar, milk, packaged ice
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Differentiated example
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Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos
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Concentrated example
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Infomercial firm sells a gadget to better fry and flip one's eggs
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Micro-marketing
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Florist designs the bride's and five attendants' bouquets
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Steps of segmentation, targeting, and positioning process
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Establish strategy or objectives>describe segments>evaluate segment attractiveness>select target market>identify and develop positioning strategy
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Factors considered in analysis of profitability of market segment
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Market growth, market competitiveness, and market access
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Why is a perceptual map used in developing positioning strategy?
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To display the position of the products or brands in the consumer's mind
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Geographic segmentation
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Organizes customers into groups on the basis of where they live
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Having variety of brands means
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Allowing to increase the market for its products
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Benefit segmentation
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Groups consumers on the basis of outcomes they seek and derive from products or service, such as clothing, appliances, toothpaste or paper towels
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Psychographic
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Segmentation method that delved into how consumer actually describe themselves
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Market segmentation
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Process of dividing the market into groups of customers who have different needs, wants, or characteristics
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Main value proposition components
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Target market, offering name/brand, product/service category or concept, and unique point of difference/benefits
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Why is market positioning done?
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So that target customers have an understanding of product offered by the company in comparison with competing products
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When everyone is considered a potential user of its product, a firm should use...
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Undifferentiated targeting strategy
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Marketers use..
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Geographic, demographic, psychographic, benefits, and behavioral segmentation methods
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What analytical method does a firm employ to assess target market in light of its own competencies?
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SWOT analysis
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What are the target strategies?
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Micro marketing, differentiated, undifferentiated marketing, and concentrated
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Firms using differentiated targeting strategy direct
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Their efforts to several market segment distinct brands and offering for each segment
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Behavioral segmentation
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Divides customers into groups on basis of how they use product or service
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Occasion segmentation
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Behavioral segmentation based on when product or service is purchased or consumed
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Firms position products based on methods
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Competition, salient attributes, symbols, and value
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When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that markets' needs, it's using..
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Concentrated targeting strategy
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Loyalty segmentation
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In light of high cost of finding new customers and the profitability of loyal customers
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Self-values examples
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Sense of belonging, self respect, and self fulfillment
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Self-concept
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Image people ideally have of themselves
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Value proposition
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Communicates the customer benefits provided by a product or service
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Value and lifestyle survey(VALS)
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Most widely used tool to support psychographic segmentation effort
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Ideal point
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Point where market segment's desired product would be located on perceptual map
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What does VALS show between psychology and lifestyle choices?
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Correlations
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Geodemographic segmentation
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Uses combination of geographic, demographic, and lifestyle characteristics to classify consumers
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STP
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Segmentation, targeting, and positioning
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Lifestyle
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How we live our lives to achieve goals and provides a method for market segmentation
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Micromarketing(one to one marketing)
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When a firm adapts a product or service to meet an individual customer's wants or needs
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Cookie
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A small text file providing a unique identification for each site visitor
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If a firm positions its product too closely to the competition, they are risking..
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A trademark infringement lawsuit
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Psychographic
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More expensive method used to identify potential customers
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When assessing the attractiveness of a segment, marketing managers need to calculate...
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Profit from each segment, both current and future
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Market positioning
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Process of creating clear, distinctive, and desirable understanding of the product in consumer's mind relative to competing products
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Psychographic studies..
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How people occupy their time and what underlying psychological reasons determine their choices
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Firms that wish to change product's positioning should be aware that..
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It is always a challenge to do so
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Well known symbol can be used as..
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Positioning tool
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What are symbols generally registered as?
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Trademarks that are legally protected by companies that create them
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Markets are not... Consumers' tastes shift, and competitors...to those shifts
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Stagnant; react
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Value
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Popular positioning method because of its relationship of price to quality and it's among the most important consideration for consumers when they make purchase decision
