MKTG 384 – Chapter 2 – Flashcards
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What are the 4 components of the marketing and promotions process model?
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1) The org's marketing strategy and analysis 2) The target marketing process 3) The marketing program development 4) The target market
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Any org that wants to exchange its products or services successfully should have a __________ ___________ _______ to guide allocation of resources.
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Strategic Marketing Plan
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Strategic Marketing Plan
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Evolves from an org's overall corporate strategy and serves as a guide for specific marketing programs and policies.
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What is Target Marketing?
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Focused marketing programs directed at 2+ segments. There is a development of different marketing strategies to satisfy different marketing needs.
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What are the 4 basic steps in target marketing?
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1) Identifying markets with unfulfilled needs 2) Segmenting the market 3) Targeting specific segments 4) Positioning
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1) Identifying Markets
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The marketer identifies the specific needs of groups of people, selects one or more of these segments, and develops marketing programs directed to each.
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2) Market Segmentation
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Dividing into distinct groups with a common need and would respond similarly to marketing action.
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What are the B2C segmentation variables?
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1) Geographic (location) 2) Demographic (sex, age, family, education) 3) Psychographic (motives, lifestyles) 4) Behavioristic (product usage)
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What are the 6 parts to a useful segment?
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1) Homogeneous 2) Heterogeneous 3) Measurable 4) Accessible 5) Substantial 6) Actionable
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Homogeneous
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All inside the segments are similar
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Heterogeneous
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Segment is unique from others
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Measurable
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Size can be determined
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Accessible
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Reachable via distribution communication
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Substaintial
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Large enough in sales and profitability
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Actionable
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Distinctive marketing mix
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3) Targeting Specific Markets
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The outcome of segmentation analysis will reveal the market opportunities available. You must determine how many segments to enter and which segments offer the most potential.
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4) Positioning
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Brand occupies a distinct position in consumer's mind.
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What are the 7 positioning strategies?
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1) Positioning by Product Attributes and Benefits 2) Positioning by Price or Quality 3) Positioning by Use or Application 4) Positioning by Product Class 5) Positioning by Product User 6) Positioning by Competitor 7) Positioning by Cultural Symbols
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Positioning by Product Attributes and Benefits
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Setting brand apart from competitors on the basis of the specific characteristics or benefits offered. Ex: 5-Hour Energy positioning itself as a sugar-free energy drink.
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Positioning by Price or Quality
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Emphasizing the high quality of the brand while making the cost kinda a secondary thought for consumers.
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Positioning by Use or Application
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Associate with specific use. ex: Arm&Hammer baking soda has been promoted for everything from baking to relieving heartburn to eliminating odors.
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Positioning by Product Class
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Amtrak has positioned itself has an alternative to airplanes bc of cost cutting, enjoyment.
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Positioning by Product User
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Associating it with a specific product user. Ex: DC shoes ad shown with person skateboarding.
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Positioning by Competitor
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Focus is on competitors. Ex: Android positioning itself against iPhone
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Positioning by Cultural Symbols
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Use of cultural symbols to differentiate brands. Ex: Keebler elves, Pillsbury Doughboy, Tony the Tiger.
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Repositioning
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Usually occurs because of declining or stagnant sales. This is usually difficult to do because of the engraved perceptions of the brand. Ex: Buick is able to do it well because product is fulfilling on message...."Claiming that the company has evolved with wifi in cars" Ex #2: Gatorade changing to G2
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Branding
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Building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer.
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What are the 3 goals of branding?
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1) Build and maintain brand awareness and interest 2) Develop and enhance attitudes toward the company, product, or service 3) Build and foster relationships between the consumer and the brand
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Brand Identity
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Combo of name, logo, symbols, design, packaging, and image of associations held by consumers.
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Brand Equity
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Intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and strength of consumer attachment to company name. This allows a brand to earn greater sales volume with higher margins than they could without the brand, providing company with a competitive advantage.
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Pricing
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A firm must consider a number of factors in determining the price it charges for its product or services, including costs, demand factors, competition, and perceived value.
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Pricing in Advertising and Promotion
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Product quality, competition, and advertising all interact in determining what price a firm can and should charge.
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What is one of the marketer's most important marketing decisions?
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The way a product is available for purchase. When and where the consumer wants it. Ability to use marketing channels or direct channels.
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Push Strategy
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Creating demand in each point of distribution. Top -> Down
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Pull Strategy
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Tell consumer and *they* will demand product from retailer. Down -> Top.
