marketing 3501- chapter 7 – Flashcards
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what is the overall purpose of differentiation?
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to create superior customer value
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Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
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Benefits sought
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Which of the following statements regarding concentrated marketing is correct?
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concentrated marketing involves higher-than-normal risks
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Which value proposition is the most difficult to sustain in the long run?
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more for less
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Which of the following statements about segmentation is true?
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Different segments might require different marketing strategies or mixes.
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Which of the following statements regarding positioning is correct?
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positions must adapt over time to meet changing consumer needs
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the full mix of benefits on which a brand is differentiated and position is called a(n)
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Value proposition
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Which of the following descriptions best represents targeting a demographic segment?
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Marketing prepackaged lunches for children
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Which targeting strategy focuses on common consumer needs, as opposed to different needs?
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Mass marketing
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Psychographic segmentation divides buyers into different segments based on
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Lifestyle and personality
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requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
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Market segmentation
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select the segment or segments to enter
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targeting
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position the market offering in the minds of target customers
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positioning
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what are the four steps in designing customer-driven marketing strategy
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segmentation, targeting, differentiation, and positioing
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divides the market into different units such as nations, regions, states, counties, cities, or even neighborhoods.
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geographic segmentation
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divides the market into segments based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. most popular bases for segmenting customer groups. easier to measure than most other types of variables.
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demographic segmentation
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divides a market into social class, lifestyle, or personality characteristics.
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psychographic segmentation
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divides a market into consumer knowledge, attitudes, uses of a product, or responses to a product. Best starting point for building a market segment. occasions, benefits, user status, usage rate.
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behavioral segmentation
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measurable accessible substantial differentiable actionable
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requirements for effective segmentation
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the size, purchasing power, and profiles of the segments
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Measureable
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the market segments can be effectively reached and served
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accessible
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the market segments are large or profitable enough to serve
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substantial
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the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
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differentiable
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effective programs can be designed for attracting and serving the segments.
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actionable
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company designs a product and a marketing program that will appeal to the largest # of buyers. Focuses on common needs rather than whats different.
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undifferentiated marketing (mass marketing)
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targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position.
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Differentiated marketing
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targets a large of a smaller market. goes after a large share of one or a few smaller segments.
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Concentrated marketing (niche marketing)
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practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. See the individual in every customer.
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micromarketing
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involves tailoring brands and promotion needs and wants of local customer segments.
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local marketing
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involves tailoring products and marketing programs to the needs and preferences of individual customers. one-to-one
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individual marketing
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show consumer perceptions of marketer's brands versus competing products on important buying dimensions.
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positioning maps
