marketing 3501- chapter 7
Lifestyle and personality
Psychographic segmentation divides buyers into different segments based on
Mass marketing
Which targeting strategy focuses on common consumer needs, as opposed to different needs?
behavioral segmentation
divides a market into consumer knowledge, attitudes, uses of a product, or responses to a product. Best starting point for building a market segment. occasions, benefits, user status, usage rate.
demographic segmentation
divides the market into segments based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. most popular bases for segmenting customer groups. easier to measure than most other types of variables.
actionable
effective programs can be designed for attracting and serving the segments.
positioning
position the market offering in the minds of target customers
substantial
the market segments are large or profitable enough to serve
segmentation, targeting, differentiation, and positioing
what are the four steps in designing customer-driven marketing strategy
to create superior customer value
what is the overall purpose of differentiation?
Benefits sought
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
Marketing prepackaged lunches for children
Which of the following descriptions best represents targeting a demographic segment?
Different segments might require different marketing strategies or mixes.
Which of the following statements about segmentation is true?
concentrated marketing involves higher-than-normal risks
Which of the following statements regarding concentrated marketing is correct?
positions must adapt over time to meet changing consumer needs
Which of the following statements regarding positioning is correct?
more for less
Which value proposition is the most difficult to sustain in the long run?
undifferentiated marketing (mass marketing)
company designs a product and a marketing program that will appeal to the largest # of buyers. Focuses on common needs rather than whats different.
psychographic segmentation
divides a market into social class, lifestyle, or personality characteristics.
geographic segmentation
divides the market into different units such as nations, regions, states, counties, cities, or even neighborhoods.
local marketing
involves tailoring brands and promotion needs and wants of local customer segments.
individual marketing
involves tailoring products and marketing programs to the needs and preferences of individual customers. one-to-one
requirements for effective segmentation
measurable accessible substantial differentiable actionable
micromarketing
practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. See the individual in every customer.
Market segmentation
requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
targeting
select the segment or segments to enter
positioning maps
show consumer perceptions of marketer's brands versus competing products on important buying dimensions.
Concentrated marketing (niche marketing)
targets a large of a smaller market. goes after a large share of one or a few smaller segments.
Differentiated marketing
targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position.
Value proposition
the full mix of benefits on which a brand is differentiated and position is called a(n)
accessible
the market segments can be effectively reached and served
differentiable
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Measureable
the size, purchasing power, and profiles of the segments