Marketing Chapter 7

Local Marketing

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

Individual Marketing

Tailoring products and marketing programs to the needs and preferences of individual customers.

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.

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.

Which differences to promote?

1. Important: the difference delivers a highly valued benefit to target buyers. 2. Distinctive: competitors do not offer the difference, or the company can offer it in a more distinctive way. 3. Superior: the difference is superior to other ways that customers might obtain the same benefit. 4. Communicable: communicable and visible to buyers. 5. Preemptive: competitors cannot easily copy the difference. 6. Affordable: buyers can afford to pay for the difference. 7. Profitable: the company can introduce the difference profitably.

Requirements for Effective Segmentation

1. Measurable: the size, purchasing power, and profiles of the segments can be measured. 2. Accessible: the market segments can be effectively reached and served. 3. Substantial: the market segments are large or profitable enough to serve. 4. Differentiable: the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. 5. Actionable: effective programs can be designed for attracting and serving the segments.

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 offer.

Concentrated (niche) Marketing

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

Differentiated (segmented) Marketing

A market-coverage strategy in which a firm targets several market segments and designs separate offers for each.

Target Market

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

Positioning Statement

A statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference).

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.

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 lifestyle or personality characteristics.

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, 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.

Benefit Segmentation

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

Demographic Segmentation

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

Intermarket (cross-market) Segmentation

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