Marketing Chapter 6

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image differentiation

a company brand or image should convey a products distinctive benefits and positioning ex: UPS=brown, Nike= Michael Jordan

undifferentiated marketing (mass marketing)

a firm decides to ignore market segment differences and target the whole market with one offer -focus on what is common rather than different

differentiated marketing (segmented marketing)

a firm decides to target several market segments and designs separate offers for each

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

benefit sought

behavioral segmentation: dividing market into segments according to the different benefits that consumers seek from the product

occasions

behavioral segmentation: dividing market into segments according to when buyers get the idea to buy, actually make their purchase or use the purchased item (ex: easter, mothers day)

usage rate

behavioral segmentation: light, medium and heavy product users

user status

behavioral segmentation: segment into- non users, potential users, first-time users and regular users of a product

product differentiation

brands can be differentiated on features, performance or style and design and the services that accompany the product

the same for less

can be a powerful value proposition Walmart offers more for discounts

more for the same

companies can attack a competitors more for more positioning by introducing a brand offering comparable quality at a lower price

target market

consist of a set of buyers who share common needs or characteristics that the company decides to serve

age and life cycle segmentation

dividing a market into different age and life cycle groups (customers needs and wants change with age ex: jello)

psychographic segmentation

dividing market into different segments based on social class, life-style or personality

behavioral segmentation

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

geographic segmentation

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

income segmentation

dividing the market into different income segments

gender segmentation

dividing the market into segments based on gender

demographic segmentation

diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation

actionable

effective programs can be designed for attracting and serving the segment

intermarket segmentation (cross-market segmentation)

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

geographic location

grouping countries by region such as Western Europe, the pacific rim, the middle east or Africa

people differentiation

hiring and training better people than their competitors do

value proposition

how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments

less for much less

involves meeting consumers lower performance or quality requirements at a much lower price (dollar general)

loyalty status

loyal to brands, stores and companies

substantial

market segments are large or profitable enough to serve

requirements for effective segmentation

measurable accessible substantial differentiable actionable

local marketing

micromarketing: tailoring brands and promotions to the needs and wants of local customers segments ex: cities neighborhoods and specific stores ex:duane reade stocks alcohol near bars

more-for-more

positioning involves providing the most upscale product o service and charging a higher price to cover the higher cost

micromarketing

practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

factors of evaluating market segments

segment size and growth segment structural attractiveness company objectives and resources

differentiable

segments are conceptually distinguishable and respond differently to different marketing mx elements and programs

concentrated marketing (niche marketing)

strategy in which a firm goes after a larger share of one or a few segments

individual marketing

tailoring products and marketing programs to the needs and preferences of individual customers ex: one-to-one marketing, madd customization, markets-of-one-marketing ex: mold ear phones to ears

accessible

the market segments can be effectively reached and served

measurable

the size, purchasing power and profiles of the segment can be measured

product proposition

the way a product is defined by consumers on important attributes-the place the product occupies in consumers minds relative to competing products

service differentiation

through speedy, convenient or careful delivery

more for less

winning value proposition easy to do in short run long run very difficult


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