Marketing 301 Exam 2 – Flashcards
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What are the major steps in designing a customer driven marketing strategy?
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1. Market segmentation 2. Targeting 3. Differentiation 4. Positioning
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Market Segmentation
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Dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviors that require separate marketing strategies or mixes
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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 the market to create superior customer value
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Positioning
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Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers
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Types of Segmentation
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1. Geographic (Nations, regions, urban/rural etc) 2. Demographic (Age, gender, income, ethnicity) 3. Psychographic (social class, lifestyle, personality) 4. Behavioral (occasions, benefits, user status, usage rate, loyalty status)
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Occasion Segmentation
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ex. Easter M&M's
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Benefit Segmentation (Benefits Sought)
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ex. 4 types of Gillette razors, each with different benefit 1. Venus embrace: for those who want the perfect shave 2. Venus Breeze: gets job done easily 3. Venus Divine: Moisturizes skin in the process 4. Simply Venus: most affordable
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Segmenting Business Markets
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Same as segmenting consumers, but with businesses instead; Think how GE has different business- Utilities, financial services, oil & gas etc
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Segmenting International Markets
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Segmenting countries by geographic location, economic factors, political factors, cultural factors etc
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Requirements for Effective Segmentation (MASDA)
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Market segments must be: -Measurable -Accessible -Substantial -Differentiable -Actionable
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Target Market
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a set of buyers sharing common needs or characteristics that a company decides to serve
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Undifferntiated (Mass) Marketing
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ignore market segment differences and go after whole market with one offer (usually not as effective as segmenting/niche mktg)
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Differentiated (Segmented) Marketing
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target several market segments and design seperate offers for each
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Concentrated (Niche) Marketing
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Going after a large share of one or few segements or niches. Ex. Whole foods "A whole foods shopper is more likely to boycott Walmart than shop there"
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Micromarketing
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Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segements; includes: -local marketing -individual marketing
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Competitive advantage
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Self explanatory, advantage over other products/services
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Product Position
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The way the product is defined by customers- the place the product occupies in the customers mind relative to competition
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Value Propostion
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The full mix of benefits on which a brand is positioned answers the question "Why should I buy your brand?"
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Possible value propostions
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1. More for more (best product, highest price) 2. More for the same 3. Same for less (same products for less $, ex Walmart) 4. Less for much less 5. More for Less (this is the winning value proposition)
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Steps in strategic planning
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1. Define the company mission (biz level) 2. Setting company objectives/goals (biz level) 3. Design business portfolio (biz level) 4. Plan marketing and other functional strategies (market level)
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mission statement
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statement of company's purpose-what it wants to accomplish; should be market oriented ex. Chipotle Chipotle's mission isn't to sell burritos. Instead, it promises "food with integrity"
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Difference between horizontal and vertical differentiation
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Vertical: one product is clearly better Horizontal: "Better" is a matter of opinion
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business portfolio
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the collection of businesses that makes up the company
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strategic business unit
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can be a company division, a product line, or even a single product; things that make up a company ex Disney's business divisions are SBU's -theme parks -movies -merchandise etc
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BCG growth/share matrix
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vertical axis: growth rate horizontal axis: market share four categories: 1. Stars (high growth, high share) 2. Question marks (high growth, low share) 3. Cash cows (low growth, high share) 4. Dogs (low, low)
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criticisms of bcg matrix
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difficult, time consuming, costly, focus on classification of business units more than strategic planning
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product/market expansion grid
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a way to identify company growth opportunuties through 1. market penetration 2. market development 3. product development 4. diversification
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Market penetration
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increasing sales of existing products into existing markets (product doesn't change)
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Market develoment
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finding new markets for existing products
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Product development
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new products for existing markets ex under armor- "charged cotton"
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Diversification
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new products, new markets
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value chain
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each part of the process, from manufacturing to delivering the finished good to the customer, adds value
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value delivery network
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ex. Today, Toyota's car doesnt compete with Ford's car, its entire value chain competes with Fords
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Marketing Mix aka "4 P's"
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1. product (variety, quality, design, features etc) 2. price (list price, discounts, payment period etc) 3. place (locations, coverage, inventory, logistics etc) 4. promotion (ads, public relations, sales promotions)
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4 C's (customers point of view)
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1. Product = Customer solution 2. Price = Customer Cost 3. Place = Convenience 4. Promotion = Communication
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SWOT Analysis
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strengths, weaknesses, opportunities, threats
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Marketing planning
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know how a marketing plan essentially looks; basically how a company plans on reaching their target market(s)
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Marketing implementation
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Turning the marketing plan into action
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Marketing Control
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Measuring the results of your marketing plans/strategies
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Marketing ROI
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return on marketing investment: Net return/costs of investment= ROI
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Strategic planning is a ____process between internal and external goals/opportunities
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"matching"
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Examples of products/services/experiences
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product- ex nike sneaker service- ex haircut experience- ex going to disneyland
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3 levels of product
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1. core customer value 2. actual product 3. augmented product
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roduct level 1: core customer value
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"what is the customer really buying?" ex if they buy a blackberry, theyre really buying freedom to email on the go
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Product level 2: Actual Product
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ex an Ipad and its features, design, quality etc
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Product level 3: Augmented Product
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shit that comes along with product ex ipad, comes with warranty, product support etc
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consumer product
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product bought by final consumers for personal consumption. Include: -convenience products -shopping products -specialty products -unsought products
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convenience product
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frequent purchase, little shopping effort, high distribution, low price, mass promotion ex toothpaste, toilet paper
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shopping product
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less frequent purchase, higher price, selective distribution, advertised by both producer/reseller ex TV's, appliances, clothing
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specialty product
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think luxury items, more targeted advertising, higher price etc ex rolex
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unsought product
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price and distribution vary, very little intersest, very aggressive advertising ex life insurance, red cross blood donations
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industrial product
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ex a machine to help produce another product
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Branding
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ex, Coke vs Pepsi blind taste test- results were 50/50 When cans were marked coke and pepsi, consumers chose coke by a margin of 75/25. This is an example of brand association
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product line
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group of products that are closely related/function in a similar manner ex marriot product line of hotels nike product line of shoes & apparel
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product mix width
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the set of all product lines a company offers for sale ex campbell's has: -healthy beverages line -baked snacks line -simple meals line
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product mix length
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total number of items in a product line ex campbell's simple meals product line carries: -campbells soup -wolfgang puck soup -pace tomato sauce etc
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product mix depth
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varieties within the product line ex campbell's -chunky soup -condensed soup -healthy request soup
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consistency
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how closely the product lines are related in terms of end use
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Brand equity
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the differential effect that knowing the brand name has on a customer a brand has positive brand equity when they prefer a brand over a unbranded version
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Brand positioning
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a brand can position themselves based on attributes, benefits, and beliefs and values
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co-branding
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using brand names of 2 different companies on the same product
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Brand development strategies
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1. Line extensions 2. Brand Extension 3. Multibrands 4. New Brands
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line extension
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ex- honey nut cheerios, frosted cheerios, etc
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brand extension
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snoop dogg introducing pet toys
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Multibrands
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Pepsi owns sierra mist, mtn dew, dasani
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New Brands
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ex toyota introducing scion to completely new target market
