Marketing Chapter 6

Demographic

Age, life-cycle state, gender, income, occupation, education, religion, ethnicity, generation

Comparative Advantage

An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices

Differentiation

Differentiate the market offering to create superior customer value (decide on a value proposition #1)

Market Segmentation

Divide the total market into smaller segments (select customers to serve #1)

Psychographic

Lifestyle, personality

Micromarketing (local or individual) marketing

Netflix's personalized recommendations

Differentiated (segmented) marketing

Nike

Positioning

Position the market offering in the minds of target customers (decide on a value proposition #2)

Concentrated (niche) marketing

Rolex

Targeting

Select the segment or segments to enter (select customers to serve #2)

Perceptual Map

created by questioning a samples or consumers about their perception of products, brands, and organizations with respect to two or more dimensions.

What are the four major segmentation variables?

geographic, demographic, psychographic, behavioral

The same for less

gives a good deal

more for the same

high quality at lower prices

Criteria of differences to promote

important, distinctive, superior, communicable, preemptive, affordable, profitable

Why use multiple segmentation

it helps marketers segment people and locations into multiple groups of like-minded people

Unlike

key competing brands

Our products

key points of differentiation

What are the key requirements for effective segmentation

measurable, accessible, substantial, differentiable, actionable

Less for much less

meeting consumers' lower performance or quality requirements at a lower price

What are the 'winning' value propositions

more for more, more for the same, more for less, the same for less, less for much less

Geographic

nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate

more for more

provides the most upscale product or service

Behavioral

purchasing behavior, usage occasions, benefits, user status, usage rate, digital proficiency, online activities, loyalty status

Our product

short but vivid description

Which provides

statement of key benefits

Positioning statement

summarizes company or brand positioning

For

target customer or segment

What are the four different targeting approaches?

undifferentiated (mass) marketing, differentiated (segmented) marketing, concentrated (niche) marketing, micromarketing (local or individual marketing)

Who

unsolved customer needs

The full positioning of a brand is called the brand's ______ _________

value proposition

Undifferentiated (mass) marketing

Coca-Cola

more for less

best winning proposition

Number of differences to promote

developing a unique selling proposition (USP) for each brand and sticking to it; positioning on more than one differentiator