Marketing: Chapter 5
Value Proposition vs Positioning Statement
Value Proposition - Promises a company makes to every consumer - "Big picture" - Connection between a firm's mission and market offering Positioning Statement - Addresses the intended target segment - Who, Brand, What, and Why - Can have multiple statements
________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.
Lagging adopters
Early Adopters are (15%)
Opinion-leaders but evaluate carefully
Types of B2B Buying Situations
Straight buy/rebuy Modified buy/rebuy Systems selling (a.k.a. solutions selling)
Positioning Statement
Who, What, Why
Loyalty segmentation
consumers can be loyal to brands or companies
Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.
differentiated
Psychographic segmentation
dividing the market into groups according to variables such as social class, lifestyles and personality characteristics
Behavioral Segmentation
dividing the market into groups on the basis of occasion, benefit, usage, and loyalty
Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. However, Fred is an opinion leader in his social networking community and likes to show off the fact that he rides on the trend waves. He is best described as a(n) ________.
early adopter
In which of the following stages of the adoption process does a consumer seek information about a new product?
interest
Usage segmentation
markets can be segmented into light, medium, and heavy product category users
Occasion segmentation
segments divided according to occasions, i.e., when the buyers become most interested to buy
Benefit segmentation
segments divided according to the different benefits that consumers seek from the product
Target market
set of buyers sharing common needs or characteristics that the company decides to serve
Late Mainstreamers (30%)
skeptical, adopt after majority
Laggards (20%)
tradition-bound, adopts an innovation only when it has become something of a tradition itself
Early Mainstreamers (30%)
trend rider, above average
Product Position
within a targeted segment, the place the product occupies in consumers' minds relative to competing products
Intel manufactures microchips and sells them to Lenovo. Lenovo then uses the microchips to make computers and sells the computers to consumers. When Lenovo performs well in the marketplace, demand for Intel's products also increases. Which type of demand does Intel rely on?
Derived demand
Geographic Segmentation
Dividing the market into groups according to variables such as nation, region, city size, statistical area, density, etc.
Many car manufacturers now sell hybrid cars. Chevrolet Malibu is one of the hybrid brands, and its positioning statement is: "For middle-class American families who require transportation powered by efficient energy, Chevrolet Malibu is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?
Point of difference
Innovators (5%) are
Risk-takers