Marketing Chapter 6
image differentiation
a company brand or image should convey a products distinctive benefits and positioning ex: UPS=brown, Nike= Michael Jordan
undifferentiated marketing (mass marketing)
a firm decides to ignore market segment differences and target the whole market with one offer -focus on what is common rather than different
differentiated marketing (segmented marketing)
a firm decides to target several market segments and designs separate offers for each
competitive advantage
an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
benefit sought
behavioral segmentation: dividing market into segments according to the different benefits that consumers seek from the product
occasions
behavioral segmentation: dividing market into segments according to when buyers get the idea to buy, actually make their purchase or use the purchased item (ex: easter, mothers day)
usage rate
behavioral segmentation: light, medium and heavy product users
user status
behavioral segmentation: segment into- non users, potential users, first-time users and regular users of a product
product differentiation
brands can be differentiated on features, performance or style and design and the services that accompany the product
the same for less
can be a powerful value proposition Walmart offers more for discounts
more for the same
companies can attack a competitors more for more positioning by introducing a brand offering comparable quality at a lower price
target market
consist of a set of buyers who share common needs or characteristics that the company decides to serve
age and life cycle segmentation
dividing a market into different age and life cycle groups (customers needs and wants change with age ex: jello)
psychographic segmentation
dividing market into different segments based on social class, life-style or personality
behavioral segmentation
dividing market into segments based on consumer knowledge, attitudes, uses or responses to a product
geographic segmentation
dividing the market into different geographical units such as nations, states, regions, counties, cities or even neighborhoods
income segmentation
dividing the market into different income segments
gender segmentation
dividing the market into segments based on gender
demographic segmentation
diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation
actionable
effective programs can be designed for attracting and serving the segment
intermarket segmentation (cross-market segmentation)
form segments of consumers who have similar needs and buying behaviors even though they are located in different countries
geographic location
grouping countries by region such as Western Europe, the pacific rim, the middle east or Africa
people differentiation
hiring and training better people than their competitors do
value proposition
how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
less for much less
involves meeting consumers lower performance or quality requirements at a much lower price (dollar general)
loyalty status
loyal to brands, stores and companies
substantial
market segments are large or profitable enough to serve
requirements for effective segmentation
measurable accessible substantial differentiable actionable
local marketing
micromarketing: tailoring brands and promotions to the needs and wants of local customers segments ex: cities neighborhoods and specific stores ex:duane reade stocks alcohol near bars
more-for-more
positioning involves providing the most upscale product o service and charging a higher price to cover the higher cost
micromarketing
practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
factors of evaluating market segments
segment size and growth segment structural attractiveness company objectives and resources
differentiable
segments are conceptually distinguishable and respond differently to different marketing mx elements and programs
concentrated marketing (niche marketing)
strategy in which a firm goes after a larger share of one or a few segments
individual marketing
tailoring products and marketing programs to the needs and preferences of individual customers ex: one-to-one marketing, madd customization, markets-of-one-marketing ex: mold ear phones to ears
accessible
the market segments can be effectively reached and served
measurable
the size, purchasing power and profiles of the segment can be measured
product proposition
the way a product is defined by consumers on important attributes-the place the product occupies in consumers minds relative to competing products
service differentiation
through speedy, convenient or careful delivery
more for less
winning value proposition easy to do in short run long run very difficult