Ch. 7

Segmenting consumers (see which one will make company most money) ______- nations, regions, states. Ex. Ford has different websites depending on this ______- age, gender, income, lifecycle, occupation. Ex. Babies R Us _______- social class, lifestyle, personality. Ex. Versace _______- occasions, benefits, loyalty. Ex. Spirit Halloween store Evaluating market segments - segment size and ______ (marketing ______ will help company do this) - segment attractiveness - company ______ and resources

Geographic, demographic, psychographic, behavioral, growth, research, objectives

Marketing strategy includes... Selecting which customers to serve - divide total market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes - select the segment of segments to enter Decide on a value proposition - make the market offering stand out to create superior customer value - put the market offering in the minds of customers

Market Segmentation, targeting, differentiation, positioning

Set of buyers who share common needs or characteristics that the company decides to serve Market targeting strategies (from targeting broadly to targeting narrowly) ______ mass marketing ______ segmented marketing ______ niche marketing ______ local or individual marketing

Target market, Undifferentiated, differentiated, concentrated, micro marketing

______ marketing targets the whole market with one offer - aka _____ marketing - focuses on _____ needs rather than differences - ex. Include ______ paper and table _____ ______ marketing targets several different market segments and designs separate offers for each - aka _____ marketing - most _____ strategy - goal is to achieve higher sales and stronger ______ - more expensive than above strategy - ex. Include _____ who also owns old navy and banana republic

Undifferentiated, mass, common, toilet, salt, differentiated, segmented, popular, position, gap

Choosing a differentiation and positioning strategy - identify a set of possible _____ ______ to build a position - choose the right ones - develop a _____ statement (summarizes company or brand positioning using form: to (target segment and need) our (brand) is (concept) that (point out difference)) and select an overall ______ strategy - communicating and _______ the chosen position to the market

Competitive advantages, positioning, positioning, delivering

______ marketing targets a large share(s) of a small market - aka _____ marketing - limited company ______ - knowledge of the _____ - more effective and efficient - ex. Include ______.com _____marketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations - ______ marketing involves tailoring brands and promotion needs and wants of _____ (same word as before) customer segments - _____ marketing involves tailoring products and market programs to the needs and preferences of ______ (same word as before) customers - ex. Include ______, interior ______, etc

Concentrated, niche, resources, market, farmers only, micro, local, local, individual, individual, doctor, designer

Requirements for effective segmentation: to be useful, market segments must be - ________: the size, purchasing power, and profiles of the segments can be quantitatively and qualitatively calculated - _______: the market segments can be effectively reached and served - ________: the market segments are large and profitable enough to serve. Should be the largest possible _______ group worth pursuing with a tailored marketing program - _______: segments are conceptually distinguishable and respond differently to different marketing mix elements and programs - _______: effective programs can be designed for attracting and serving the segments

Measurable, accessible, substantial, homogenous, differentiable, actionable

The way the product is defined by consumers in important attributes- the place is occupies in consumers minds relative to competing products Choosing a differentiation and positioning strategy - _____ ______- an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices - ______ communicates below word of the product to the customer - _____ ____ communicates the benefits from a product or service to the customers and provides reasons for wanting to purchase it

Product position, competitive advantage, positioning, value proposition