Chapter 8 -Marketing
What are ways to segment consumer market
-Geographic; region, city size - Demographic; gender, age, ethnicity, family size, family life cycle, income, occupation - Psychographic; personality and lifestyle - Behavioral: where, what, how, why perspective consumers buy
What are the criteria is used to select target markets
-Market size - Expected growth - competitive position - cost of reaching the segment - compatibility with organizations objectives and resources
What are the five steps and segmenting and targeting market links the market needs of a consumer to organization marketing program
1. Group potential buyers into segments 2. Group products to be sold in categories 3. Develop a market product grid and estimate size of market 4. Select target markets 5. Take marketing actions to reach target markets
And marketing manager should develop segments for market that meets five principal card. list these important factors that meet market segments
1.Simplicity and cost effectiveness of assigning potential buyers to segment 2. Potential for increased profit 3. Similarities of knees of potential buyers with a segment 4. Difference of needs of buyers among segment 5. Potential of a marketing action to reach a second
What are the three types of data needed from consumers to develop a perceptual map
1: Identification of the important attributes for a product class 2:Judgment of existing Brands with respect to these attributes 3: Rating of an ideal product or brand attributes
What are the four steps to positioning a product with a perceptual map
1: Identify the important attributes for product or brand class 2:Discover how target consumer rate competing products or brands with respect to these attributes 3: Discover where the company's product or brand is on the attributes in the mind of potential customers 4: Reposition the company product or brand in the minds of potential customers
Two examples of product positioning
H2H: Dollar Rent-A-Car compete directly with Avis and Hertz Differentiation pos: McDonald's try to appeal to have conscious segment with its low fat McLean duplex hamburger To avoid competing directly with Wendy's or Burger King
What are the two approaches to product positioning
Head to head positioning Differentiation positioning
Describe the market segmentation process
Market segmentation links market needs to an organizations marketing program. It's specific marketing mix action designed to satisfy those needs Identifies markets needs Link needs to actions Execute marketing program actions
How does product differentiation relate to market segmentation how does it potentially improve a firms revenue
The existence of different market segments have caused firms to use a marketing strategy of product differentiation Market segmentation is only a means to an end; it leads to tangible marketing actions that can increase sales and profitability
What is the 80/20 rule?
The idea that 80% of the firm sales are obtained from 20% of its customers
Define product positioning
The place of a product justifies and consumers mind based on an important attribute it's up to the competitive product
What is product differentiation?
The strategy of using different marketing mix actions to help consumers perceive a product as being different and better than competing products
What is market segmentation?
the process of dividing a market buyers into smaller groups designed to have similar wants and needs And will respond similarly to a market action
Why is market segmentation important.?
will respond more effectively to the one of groups of potential buyers To increase sales and profits
