Chapter 7 - Customer Value-Driven Marketing Strategy: Creating Value for Target Customers
Individual Marketing
tailoring products and marketing programs to the needs and preferences of individual customers
Age and Life-Cycle Segmentation
dividing a market into different age and life-cycle groups
Income Segmentation
dividing a market into different income segments
__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
A. Behavioral B. Benefit C. Income D. Gender *E. Psychographic
__________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
A. Demographic B. Gender C. Occasion D. Psychographic *E. Behavioral
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market __________.
A. identifying B. positioning C. targeting D. differentiation *E. segmentation
The winning value proposition by discount stores such as Walmart and PetSmart can be categorized as __________.
A. less for much less B. more for more *C. the same for less D. more for less E. more for the same
Using a(n) __________ marketing strategy, a firm might decide to ignore market segment differences.
A. local B. differentiated C. individual D. micromarketing *E. undifferentiated
Market __________ evaluates each market segment's attractiveness and selects one or more segments to serve.
A. segmentation B. positioning C. relationships D. differentiation *E. targeting
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
A. services B. product *C. channel D. image E. people
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as __________.
A. undifferentiated marketing B. segmented marketing C. micromarketing *D. concentrated marketing E. differentiated marketing
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Undifferentiated Marketing (or 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
Differentiated Marketing (or Segmented Marketing)
a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated Marketing (or Niche Marketing)
a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
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)
Which differentiation strategy does the Atlanta Hawks seem to be employing?
a. channel differentiation b. people differentiation c. services differentiation *d. product differentiation e. price differentiation
While Millennials are the primary target customer of the Atlanta Hawks, it is clear that the efforts of the organization to facilitate social media activity also appeals to other customer segments including Gen X and Baby Boomers. Thus, it is clear that the Hawks are employing a(n) __________________ targeting strategy.
a. concentrated b. customized c. undifferentiated d. niche *e. differentiated
Having an arena with bandwidth that is stronger than the average event venue is one way that the Atlanta Hawks have ______________________ their market offering.
a. concentrated b. segmented c. targeted d. micromarketed *e. differentiated
The Atlanta Hawks recently renovated their home arena with Millenials as the target customer group. This is based on ______________ segmentation.
a. geographic b. lifestyle c. psychographic *d. demographic e. behavioral
In terms of general value propositions, the Hawks are providing greater value with a ____________________ strategy.
a. less for much less *b. more for the same c. more for less d. the same for less e. more for more
Differentiation
actually differentiating the market offering to create superior customer value
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
Geographic Segmentation
dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
Gender Segmentation
dividing a market into different segments based on gender
Psychographic Segmentation
dividing a market into different segments based on social class, 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
Market Targeting
evaluating each market segment's attractiveness and selecting one or more segments to enter
Hyperlocal Social Marketing
location based targeting to consumers in local communities or neighborhoods using digital and social media
Local Marketing
tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores
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
The Law of Focus
the most powerful concept in marketing is owning a word in the prospect's mind
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