Marketing Unit 3 – Flashcards
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What are the twin pillars of marketing?
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segmentation & differentiation
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why is targeting a specific group of customers usually more successful than trying to appeal to everyone? a) customer interests change b) it takes less effort c) it costs less d) it will satisfy the segment's specific needs
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d) it will satisfy the segment's needs trying to appeal to everyone may mean that the product is not very interesting to anyone
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A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation?
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geographic
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Clear Channel owns hundred of radio stations across the U.S. How do they decide what kind of music to play on a particular station? a) benefits b) psychographic c) demographic d) usage e) geographic
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c) demographic
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True or False: Procter & gamble markets six different brands of laundry detergent, each targeting a different marketing segment.
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False! this is an example of multi-segment targeting
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True of False: Deciding who to target is the first step in market segmentation
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False it is the last step in market segmentation
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True or False: "One-Size-Fits-All" marketing is largely out of date.
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True Consumers are more sophisticated and want to feel that they are being treated uniquely.
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Criteria for Successful Segmentation
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substantiality identifiability & measurability accessibility responsiveness
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segmentation bases
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characteristics of individuals, groups, or organizations used to divide a total market into segments
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advantages of single variable segmentation
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simpler & easier to use
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disadvantages of multiple variable segmentation
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usable secondary data is less likely to be available as the number of segmentation bases increases, the size of individual segments decreases
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Types of Segmentation
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Geographic Demographic Psychographic Benefit Usage-Rate
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Types of Demographic Segmentation
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Age Gender Income Ethnic Family Life Cycle
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80/20 principle
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20% of all customers generate 80% of the demand (usage-rate segmentation)
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steps in segmenting the market
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1) select a market or product category for study 2) choose a basis or bases for segmenting the market 3) select segmentation descriptors 4) profile & analyze the segments 5) select target markets 6) design, implement, and maintain appropriate marketing mixes
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strategies for selecting a target market
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undifferentiated targeting concentrated targeting multi-segment targeting
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undifferentiated targetin
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viewing teh market as one big market w/ no individual segments; uses one marketing mix for entire market
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concentrated targeting
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used to select one segment of a market for targeting marketing efforts
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multi-segment targeting
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choosing two or more well-defined market segments & developing a distinct marketing mix for each; most successful
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trends leading to the growth of CRM
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personalization time savings loyalty technology
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how to write a positioning statement
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For [insert target market], the brand is the [point of differentiation] among all [frame of reference] because [reason to believe].
