Marketing ch. 7

SoLoMo

Social Local Mobile. refers to the ability of on the go customers to get local information fast, wherever they may be.

Local marketing

Tailoring brands and marketing to the needs and wants of local customer segments-cities, neighborhoods, and even specific stores. ex. dominos

Individual Marketing

Tailoring products and marketing programs to the needs and preferences of individual customers. AKA One-to-one marketing Mass customization Markets of one marketing

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

Target market

a set of buyers sharing common needs or characteristics that the company decides to serve.

Positioning

consists of arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.

Market targeting

consists of evaluating each market segments attractiveness and selecting one or more market segments to enter.

Geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods.

Value proposition

how a firm will create value for target customers

Differentiation

involves actually differentiating the firms market offering to create superior customer value.

Market segmentation

involves dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviors that might require separate marketing strategies or mixes.

Undifferentiated (mass marketing)

A market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one another.

Differentiated (segmented) marketing

A market coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentrated (niche) marketing

A market coverage strategy in which a firm goes after a large share of one or a few segments or niches. ex. Whole foods

Age and life cycle segmentation

Dividing a market into different age and life cycle groups.

Income segmentation

Dividing a market into different income segments.

Gender segmentation

Dividing a market into different segments based on gender

Psychographic segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics

Behavioral segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.

Occasion 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. ex. campbells advertises during winter months m&m advertise during easter, christmas and super bowl.

Benefit segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product.

Demographic segmentation

Dividing the markets into segments based on age, life cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Inter-market (cross market) segmentation

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

List and discuss the major bases for segmenting consumer and business markets:

Geographic-Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural) Demographic-age, life cycle stage, gender, income,occupation, education,religion,ethnicity, generation Psychographic-social class, lifestyle, personality Behavioral- occasions, benefits, user status, usage rate, loyalty status

Target marketing

Identifying market segments, selecting one or more of them and developing products and market programs tailored to each.

To be useful market segments must be:

Measurable-the size, purchasing power, and profiles of the segments can be measured. Accessible-The market segments can be affectively reached and served Substantial-the market segments are large and profitable enough to be served Differentiable-the segments are conceptually distinguishable and respond differently to different marketing mix programs and elements. Actionable-Effective programs can be designed for attracting and serving the segments. ex small airline can not serve 7 different segments.