MKT Quiz 4

Psychographic segmentation

Based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers

Geographic segmentation

Based on where prospective customers live or work (region, city size).

Micro-marketing

Tailoring products and marketing programs to suit the tastes of specific individuals and locations. Local Marketing. Individual Marketing

Market Positioning

The arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer.

Market Segmentation

The division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes. A group of consumers who respond in a similar way to a given set of marketing efforts.

Niche Marketing

The focus is acquiring a large share of one or a few segments of niches. Generally, there are fewer competitors. There is some risk in focusing on only one market.

Market Targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

V.A.LS

Value, Attitude, and Lifestyle

Evaluating Market Segments

Segment Size and GrowthAnalyze sales, growth rates and expected profitability. Segment Structural AttractivenessConsider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers. Company Objectives and ResourcesCompany skills & resources relative to the segment(s).Look for Competitive Advantages

Benefits

segmenting buyers by the benefits that they seek from the product

Usage

segmenting buyers by the frequency that they use/buy products

Application

segmenting buyers by the way in which they use products

Steps in Segmentation, Targeting, and Positioning

1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Measures of Segment Attractiveness 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment

Ways to segment consumer markets

1.) Geographic segmentation 2.) Demographic segmentation 3.) Psychographic segmentation 4.) Behavioral segmentation

Perceptual Map

A two-dimensional graph that visually shows where your product stands, or should stand, relative to your competitors, based on criteria important to buyers.

Reposition

An effort to "move" a product to a different place in the minds of consumers.

Behavioral segmentation

Based on some observable actions or attitudes by prospective customers - such as where they buy, what benefits they seek, how frequently they buy, and why they buy. -- Usage rate

Demographic segmentation

Based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers.

Segment Marketing

Firm targets several market segments and designs separate offers for each. The goal is to have higher sales and a stronger position with each market segment. This approach increases the costs of doing business.

Mass Products

Focus is on common (not different) needs of consumers. Product and marketing program are geared to the largest number of buyers. Uses mass advertising and distribution.

Business Segmentation Variables

Graphic Location, Product Use, Type of Organization, and Company Size

Positioning

How consumers perceive a product relative to the competition.

Levels of Market Segmentation

Mass Marketing- Same product to all consumers (no segmentation) Segment Marketing- Different products to one or more segments (some segmentation) Niche Marketing- Different products to subgroups within segments (more segmentation) Micro-Marketing- Products to suit the tastes of individuals or locations (complete segmentation)

Requirements for Effective Segmentation

Measurable- Size, purchasing power, profiles of segments can be measured. Accessible- Segments must be effectively reached and served. Substantial- Segments must be large or profitable enough to serve. Differential- Segments must respond differently to different marketing mix elements & actions. Actionable- Must be able to attract and serve the segments.