marketing 3501- chapter 7

Lifestyle and personality

Psychographic segmentation divides buyers into different segments based on

Mass marketing

Which targeting strategy focuses on common consumer needs, as opposed to different needs?

behavioral segmentation

divides a market into consumer knowledge, attitudes, uses of a product, or responses to a product. Best starting point for building a market segment. occasions, benefits, user status, usage rate.

demographic segmentation

divides the market into segments based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. most popular bases for segmenting customer groups. easier to measure than most other types of variables.

actionable

effective programs can be designed for attracting and serving the segments.

positioning

position the market offering in the minds of target customers

substantial

the market segments are large or profitable enough to serve

segmentation, targeting, differentiation, and positioing

what are the four steps in designing customer-driven marketing strategy

to create superior customer value

what is the overall purpose of differentiation?

Benefits sought

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep​ monitoring, text​ notification, and wireless sync to their smart phone. In serving these two very different​ groups, Fitbit is using​ __________ segmentation.

Marketing prepackaged lunches for children

Which of the following descriptions best represents targeting a demographic segment?

Different segments might require different marketing strategies or mixes.

Which of the following statements about segmentation is​ true?

concentrated marketing involves higher-than-normal risks

Which of the following statements regarding concentrated marketing is​ correct?

positions must adapt over time to meet changing consumer needs

Which of the following statements regarding positioning is correct?

more for less

Which value proposition is the most difficult to sustain in the long​ run?

undifferentiated marketing (mass marketing)

company designs a product and a marketing program that will appeal to the largest # of buyers. Focuses on common needs rather than whats different.

psychographic segmentation

divides a market into social class, lifestyle, or personality characteristics.

geographic segmentation

divides the market into different units such as nations, regions, states, counties, cities, or even neighborhoods.

local marketing

involves tailoring brands and promotion needs and wants of local customer segments.

individual marketing

involves tailoring products and marketing programs to the needs and preferences of individual customers. one-to-one

requirements for effective segmentation

measurable accessible substantial differentiable actionable

micromarketing

practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. See the individual in every customer.

Market segmentation

requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

targeting

select the segment or segments to enter

positioning maps

show consumer perceptions of marketer's brands versus competing products on important buying dimensions.

Concentrated marketing (niche marketing)

targets a large of a smaller market. goes after a large share of one or a few smaller segments.

Differentiated marketing

targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position.

Value proposition

the full mix of benefits on which a brand is differentiated and position is called a(n)

accessible

the market segments can be effectively reached and served

differentiable

the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Measureable

the size, purchasing power, and profiles of the segments