MARK 3336 Module 7
Individual Marketing
Tailoring products and marketing programs to the needs and preferences of individual customers One-to-one marketing Mass customization Ex: custom sneakers design, mini cooper, My M&M's
positioning statement
To (target segment and need) our (brand) is (concept) that (point of difference)
Demographics Segmentation
age, gender, income, ethnic background, life-cycle stage -most popular -easier to measure
Consumer loyalty segmentation
buyers divided into groups according to their degree of loyalty. Consumers can be loyal to brands (Tide), stores (Target), companies (Apple).
Target Market
consists of a set of buyers who share common needs or characteristics that the company decides to serve
Differentiation
differentiating the market offering to create superior customer value
Segmentation
divide the total market into smaller segments with distinct needs, characteristics, etc. that might require separate marketing strategies or mixes
Occassion Segmentation
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
usage-rate segmentation
light, medium, and heavy product users
user status segmentation
nonusers, ex-users, potential users, first-time users, and regular users of a product.
Behavioral Segmentation
occasions, benefits, user status, usage rate, loyalty status
Positioning
position the market offering in the minds of target customers
benefit segmentation
requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit
Targeting
select the segment or segments to enter
perceptual positioning maps
show consumer perceptions of their brands versus those of competing products on important buying dimensions
value proposition
the full positioning of a brand - the full mix of benefits on which it is positioned
product position
the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
Niche Marketing
(Concentrated) MORE segmentation instead of going after a small share of a large market, a firm goes after a large share of one smaller segment or niche Ex: Big & Tall
Segment Marketing
(differentiated) SOME segmentation target several market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position More expensive than mass marketing ex: P&G markets six different detergent brands, compete with each other on supermarket shelves.
Mass Marketing
(undifferentiated) NO segmentation ignore market segment differences and target the whole market with one offer. Focuses on common needs rather than what's different Ex: Walmart
Micromarketing
COMPLETE segmentation Tailoring products and marketing programs to suit the tastes of specific individuals and locations Ex: H-E-B
pyschographic segmentation
Lifestyle, Personality
Viability of segments: Criteria to consider
Measurable Accessible Substantial Differentiable Actionable
geographic segmentation
Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate