Chapter 7 marketing

product, service (speedy or convenient), channel, people (quality employees), image (brand)

a few ways that companies can try to differentiate themselves to create a competitive advantage

when multiple companies are claiming to be the best at the same attribute

a lot of people say you should focus on one unique selling point for each brand, but when should you position yourself on more than one attribute?

positioning statement

a statement that summarizes company or brand positioning using this form: To (target segment or 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 proving more benefits that justify higher prices

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers

more for the same

attacking a competitor's value proposition by offering more for the same price

intermarket segmentation

forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries ex-Coke appealing to THE TEENS world wide

segmentation, targeting, differentiation, positioning

four major steps in selecting a customer driven marketing strategy

socially responsible target marketing

idea that you shouldn't target vulnerable or disadvantaged consumers with controversial or harmful products ex-targeting poor minorities with fast food

economies

local marketing can increase marketing and manufacturing costs by reducing ____________ of scale

differentiated marketing

market coverage strategy in which a firm targets several market segments and designs separate offers for each ex-having six different laundry detergent brands hope for high sales and stronger position within each segment

undifferentiated marketing

mass market coverage strategy in which the firm decides to ignore market segment differences and target the whole market with one offer design product and marketing program that appeals to largest number of buyers

unique selling position

name for one attribute you should choose when deciding on your competitive advantage

can go out of business if your market goes sour, bigger companies with more resources can take market share

risks of just focusing on concentrated marketing

user status

segmenting a market in non-users of your product, ex-users, potential users, regular users, etc. want to retain regular users, win back ex-users, attract non-users

usage rate

segmenting a market into light, medium, and heavy product users

target marketing

selecting target market segments is part of

target market

set of buyers who share common needs or characteristics that a company decides to serve

positioning map

shows how consumers view your brand versus those of competing products on important buying dimensions ex-comparing luxury SUVs on price and orientation

local marketing

tailoring brands and promotions to the needs and wants of local customers ex-offering very specific deals to customers depending where they are in a state, city, country, etc. type of micromarketing

individual marketing

tailoring products and marketing programs to the needs and privileges of individual customers type of micromarketing

value proposition

the full positioning of a brand-the full mix of benefits on which it is positioned part of selecting an overall positioning strategy

product position

the way a product is defined by consumers on important attributes-the place it occupies in consumers' minds relative to competing products

your resources, competitor's marketing strategies, market variability (does everyone in your market have the same taste/react the same to marketing efforts), how uniform or varied the design of your product is

things you should consider when choosing a market targeting strategy

more for more

value proposition where you provide the most upscale product or service an charge a higher price for it ex-LV, Four Seasons but, invites others to say they offer the same for less

geographic locations, economic factors, political and legal factors (type of govt. stability), culture (common languages and values)

what are a few ways you can segment international markets

value proposition

when trying to differentiated and position your product, you need to decide on your ____________ _____________ (how you will create differentiated value for target segments)

identify possible value differences and competitive advantages, choose the right competitive advantages, select an overall positioning strategy

3 steps in choosing a differentiation and positioning strategy

segment size, segment structural attractiveness, company objectives and resources

3 things to consider when evaluating your market segments

more for more, more for the same, more for less, the same for less, less for much less

5 types of winning value propositions

market targeting

evaluating market segments is part of

efficiently, effectively

concentrated marketing targets ____________ and ____________

less for much less

consumers will often give up bells and whistles for a lower price meet consumer lower performance or quality requirements at a much lower price ex-Costco, Aldi

differentiation

differentiating your product or service to create customer value

occasion segmentation

dividing a market according to occasions when they the the idea to buy, actually make their purchase, or use the purchased item ex-heavily advertising your hearty chicken-soup during the winter

age and life cycle segmentation

dividing a market into different age and life cycle groups type of demographic segmentation

geographic segmentation

dividing a market into different geographical units like nations, states, regions, counties, cities, etc. helps localize your product and services, ads, etc. to fit needs of certain regions or cities

market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

market targeting

evaluating each market segment and choosing one to serve

micromarketing

customized marketing messages and mass customization (like NIKE ID) are examples of what

behavioral segmentation

dividing a market into segments based on consumer knowledge, attitudes, use of a product, or responses to a product 5 types-occasion, usage rate, loyalty, benefits sought, user status

benefit segmentation

dividing a market into segments based on the different benefits they want from the product requires finding the major benefits people look for in a product class, kinds of people who look for each benefit, and the major brands that deliver each each benefit ex-fit bit makes different versions of its product for people who just want to count calories, people who want high performance heart rate tracking etc.

psychographic segmentation

dividing a market up into different segments based on lifestyle or personality characteristics basing marketing strategy on different lifestyle appeals (urban active, bohemian, etc.) also diff personality characteristics

demographic segmentation

dividing markets into segments based on variables like age, life cycle stage, gender, income, etc.

gender segmentation

dividing up market segments based on gender used in marketing clothing, cosmetics, toys, magazines, etc.

income segmentation

dividing up the market into different income segments used by automobile, clothing, cosmetics, financial, travel services ex-target affluent people with luxury items, less affluent people with dollar store shit lol

costs

for differentiated marketing, need to balance increased potentially increased sales of appealing to many segments with increased ____________ of doing so

undifferentiated, differentiated, concentrated, micromarketing

four different levels that you can carry out market targeting

mosaic

leading consumer segmentation system is ___________

micromarketing

market coverage strategy of tailoring products and marketing programs to needs and wants of specific individuals and local customer segments includes local + individual marketing

concentrated (niche) marketing

market coverage strategy where firm goes after a larger share of one or a few segments or niches you achieve a stronger market position because of greater knowledge of consumer needs in the niche you serve and the special reputation you have in that niche

same for less

offering many of the same brands but at deep discounts from lower cost operating type of value proposition

market share

on a positioning map, the size of each circle represents each brand ____________ ___________

loyalty status

segmenting based on consumer loyalty completely loyal, somewhat loyal, no loyalty, etc. work with high loyal to promote your brand, study non-loyal to find out what's not working

measurable, accessible, substantial(big enough to profitably serve), differentiable (respond differently to different marketing mix elements), actionable

to be useful, market segments should be these 5 things

false

true/false age is good predictor of a person's life cycle, health, work, or family status when doing age and life cycle segmentation good to stereotype?

true

true/false business markets can be segmented in many of the same ways as consumers (geographic, demographic (industry/size), benefits, sought, user status, usage rate, loyalty status) and by operating characteristics, purchasing approaches, situational factors as well

true

true/false companies often use multiple segmentation bases to identify smaller, better-define target groups

true

true/false demographic segmentation is the most popular way to segment because it's easy to measure and needs, wants, usage rates, vary closely with demographic variables

false (large percentage of sales)

true/false heavy users are a small percentage of the market and account for a small percentage of total sales

true

true/false many brands that have traditionally targeting women are starting to target men and vice versa

true

true/false marketing should plan positions that will give their products the greatest advantage in selected target markets, and they must design marketing mixes to create these planned positions

true

true/false occasions segmentation can help boost product usage and consumption (if you encourage consumers to use your product during nontraditional times) the taco bell breakfast!!!!!

true

true/false people in the same demographic group can have very different psychographic characteristics

false (it's hard to do those things)

true/false undifferentiated marketing is a good strategy because its easy to appeal with everyone and compete with more focused firms

true, false (might not have resources to properly serve. focus on smaller, more profitable markets if you need to)

true/false you want to select the market segment that have the right size and growth characteristics for your company true/false you should always serve larger market because they can make you more money

how many differences to promote, which differences to promote

two things to consider when choosing the right competitive advantage

occasion, benefit, loyalty, user status, usage rate

types of behavior segmentation

age, life style, income, gender

types of demographic segmentation

more for less

which winning value proposition likely isn't sustainable for long periods of time

porter's, structural

you need to think about __________ five forces when evaluating segment ___________ attractiveness

unconcentrated, differentiated, concentrated

you should use ______________ marketign with uniform products (like steel or grapefruit) and _________________ or _______________ with products that can vary in design