Marketing Test 2 Ch 6, 7, 8, 9, 10, & 11
Number of differences to promote
-Developing a unique selling proposition (USP) for each brand and sticking to it -Positioning on more than one differentiator
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 -Firms can differentiate in terms of product, services, channels, people, or image.
choosing a targeting strategy factors to consider
Company resources Product variability Product's life-cycle stage Market variability Competitors' marketing strategies
Preemptive.
Competitors cannot easily copy the difference.
Distinctive.
Competitors do not offer the difference, or the company can offer it in a more distinctive way.
The website leftyslefthand.com markets products to left-handed consumers only. Which targeting strategy does this represent?
Concentrated marketing
Niche Marketing
Concentrated;refers to a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. Goes after a large share of one or a few segments or niches.
Loyalty Status
Consumers can be loyal to brands, stores, and companies
behavioral segmentation- loyalty status
Consumers can be loyal to brands, stores, and companies.
Segmented Marketing
Differentiated; refers to a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
market targeting
Evaluating the various segments based on: -Segment size and growth -Segment structural attractiveness -Company objectives and resources
Major Segmentation Variables
Geographic,Demographic,Psychographic, and behavioral
Customer- Driven Marketing Strategy
Market segmentation, targeting, differentiation, and positioning.
behavioral segmentation- user rate
Markets can be segmented into light, medium, and heavy product users.
3 Types of Market Targeting
Mass marketing (undifferentiated) , Segmented (differentiated) marketing, and Niche (concentrated) marketing
Requirements for Effective Segmentation
Measurable , accessible, substantial , differentiable, and actionable
Which of the following would make a segment less attractive to enter?
New entrants finding it easy to enter the segment
_____ 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.
Positioning This is the correct answer.
Which of the following is a variable used to segment consumer buyers that is not used to segment business buyers?
Psychographics
3 Major Characteristics of Target Marketing
Segment size and growth, segment structural, and objectives and resources
target market
Set of buyers sharing common needs or characteristics that the company decides to serve
positioning statement
Summarizes company or brand positioning Format: To (target segment and need) our (brand) is (concept) that (point of difference).
Profitable.
The company can introduce the difference profitably.
Important.
The difference delivers a highly valued benefit to target buyers.
Communicable.
The difference is communicable and visible to buyers.
Superior.
The difference is superior to other ways that customers might obtain the same benefit.
Mass Marketing
Undifferentiated; refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
segmenting international markets
Variables include: Geographic location Economic factors Political and legal factors Cultural factors
Product Positioning
Way a product is defined by consumers on important attributes
Marketers must be careful to guard against stereotypes when using ________.
age and life cycle segmentation`
Behavioral Segmentation Variable
best starting point for building market segments includes two sub-behavioral segmentation: Occasion and benfit
Affordable.
Buyers can afford to pay for the difference.
Segment size and growth
company wants to select segments that have the right size and growth characteristics
Market 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.
gender segmentation
dividing a market into different segments based on gender
Geographic Segmentation Variable
dividing the market into different geographical units, such as nations, regions, states, counties, cities, or even neighborhoods
Market Targeting
evaluating each market segment's attractiveness and selecting one or more market segments to enter. buyers who share common needs or characteristics that the company decides to serve
Segment Structural
examine major structural factors that affect long-run segment attractiveness like strong and aggressive competitors, actual or potential substitute products
multiple segmentation basis
helps companies to identify smaller, better-defined target groups identify and understand key customer segments reach customers more efficiently by tailoring market offerings and messages to customers specific needs. segmentation systems help marketers segment people and locations into marketable groups of like minded consumers
Segmentation Systems
helps marketers segment people and locations into marketable groups of like-minded consumers.
which differences to promote
important distinctive superior communicable preemptive affordable profitable
more for the same
introducing a brand offering comparable quality at a lower price.
Less for much less
involves meeting consumers' lower performance or quality requirements at a much lower price.
Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocers in other neighborhoods. This is an example of ________.
local marketing
behavioral segmentation- user status
marketers can be segmented into nonusers, ex-users, potential users, first time users, and regular users
psychographic segmentation
marketers segment their markets using variables such as social class, lifestyle, personality characteristics. the products people buy reflect their lifestyles
Usage Rate
markets can be segmented into light, medium, and heavy users
User Status
markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users
requirements for effective segmentation
measurable, accessible, substantial, differentiable, actionable
Toyota allows Scion buyers to customize their cars to meet their exact needs and preferences. This is an example of ____________.
micromarketing
winning value propositions
more for more = provides the most upscale product or service more for the same = high quality at lower prices more for less = best winning proposition the same for less = gives a good deal less for much less = meeting consumers lower performance or quality requirements at lower price
Winning Value Propositions
more for more, more for the same, the same for less, less for much less, more for less
Objective and Resources
must consider its own objectives and resources
more for more
providing the most upscale product or service and charging a higher price to cover the higher costs.
The marketing manager at Arbor's Delicatessen targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Arbors' approach is best referred to as ________ segmentation.
psychographic
behavioral segmentation- benefit segmentation
segments divide according to the different benefits that consumers seek from the products
Behavioral segmentation- occasion segmentation
segments divided according to occasions when the buyers get the idea to buy, make their purchase, use the purchased item.
targeting
selected the segment or segments to enter
Perceptual Positioning Map
show consumer perceptions of their brands versus those of competing products on important buying dimensions to plan their differentiation and positioning strategies.
Positioning Statement
summarizes companies or brand positioning
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
Many marketers think that companies should aggressively promote only one benefit to the target market. The benefit promoted is known as a(n) ________.
unique selling proposition
market targeting strategies
*Targeting broadly* undifferentiated (mass) marketing -> differentiated (segmented) marketing -> concentrated (niche) marketing -> micro marketing (local or individual marketing) *Targeting narrowly*
Differentiation and positioning has three steps:
-Identifying differentiations to create competitive advantage -Choosing advantages to build a position -Selecting an overall positioning strategy A brand's full positioning is its value proposition.
segmenting business markets
-consumer and business markets used many of the same variable for segmentation -variable used by business marketers for segmentation include: operating characteristics, purchasing approaches, situational factors, personal characteristics
choosing a differentiation strategy
1. Identifying a set of differentiating competitive advantages 2. Choosing the right competitive advantages 3. Selecting an overall positioning strategy
Communicating and Delivering the Chosen Position
All the company's marketing mix efforts must support the positioning strategy. Maintain the position obtained through consistent performance and communication. The product's position should be monitored and adapted over time.
socially responsible target marketing
Controversy and concern of target marketing -Vulnerable or disadvantaged consumers are targeted with controversial or potentially harmful products. Socially responsible target marketing should be done to serve both the interests of the company and the interests of those targeted.
differentiation and positioning
Firms must decide which segments to target and on the value proposition. *Product position* is the way a product is defined by consumers on important attributes.
Intermarket (cross-market) segmentation:
Grouping consumers with similar needs and buying behaviors irrespective of their location
At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working, middle-class. What is this segmentation method called?
Psychographic
Differentiation & Positioning Strategy
consists of three steps which are identifying a set of differentiating competitive advantages on which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy.
Intermarket segmentation
cross-market; grouping consumers with similar needs and buying behaviors irrespective of their location.
Market Differentiation
differentiating the firm's market offering to create superior customer value.
differentiation
distinguish the market offering to create superior customer value
segmentation
divide the total market into smaller segments
Gender Segmentation
divides a market into different segments based on gender.
Psychographic Segmentation
divides buyers into different segments based on social class, lifestyle, or personality characteristics.
Occasion Segmentation
divides 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
divides the market into segments according to the different benefits that consumers seek from the product.
Demographic Segmentation Variable
divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
age and life cycle segmentation
dividing a market into different age and life cycle groups
geographic segmentation
dividing a market into different geographical units, i.e. nations states, regions, counties, cities, or neighborhoods
Income Segmentation
dividing a market into different income segments
income segmentation
dividing a market into different income segments
demographic segmentation
dividing a market into segments based on variables, i.e. such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation
Market Segmentation
dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
offering the same for less
offer many of the same brands but at deep discounts based on superior purchasing power and lower-cost operations.
Age,Life-Cycle Stage Segmentation
offering different products or using different marketing approaches for different age and life-cycle groups
positioning
position the market offering in the minds of target customers, *all create value for targeted customers*
Value Proposition
positioning of a brand; refers to the full mix of benefits on which a brand is differentiated and postioned.
If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________.
preemptive