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