Marketing CH 6

The same for less

Ex: Best buy, petsmart, DSW uses this positioning. They don't claim to offer different or better products. Instead they offer many of the same brands as department stores but at deep discounts based on superior purchasing power and lower cost operations.

Channel differentiation (point of difference)

Firms that practice this type of differentiation gain competitive advantage through the way they design their change;'s coverage, expertise and performance. Ex: Amazon sets themselves apart with their smooth functioning direct channels.

Value proposition

How a brand will create differentiated value for targeted segments and what positions it wants to occupy in those segments Should answer the question: Why should I buy your brand?

Types of value propositions

- More for more(winning value propositions -more for the same -more for less -the same for less -less for much less (losing value propositions_

four types of marketing segmentation

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

Differentiation and positioning three steps

1.) Identifying a set of differentiating competitive advantages to build a position 2.) Choosing the right competitive advantages 3.)Selecting an overall positioning strategy

Image differentiation (point of difference)

A company or brand image should convert a products distinctive benefits and positioning. Ex: Mc. donald's golden arches, nike swoosh, apples bite mark logo.

Undifferentiated marketing /Mass marketing

Also refereed to as undifferentiated marketing, is where a firm might decide to ignore market segment differences and target the whole market with one offer. This strategy focuses on whats common in the needs of consumers rather than what is different --most suited for uniform products such as steel

Demographic segmentation

Divides the market into segments based on variables such as age, gender, income, education, occupation, ethnicity, religion. These factors are most popular bases for segmenting customer groups. -easier to measure than most types f variables -customers needs and usage rates are closely related with this

Geographic segmentation

Dividing the market into different geographic units such as nations, regions, states, cities, neighborhoods. Many companies today are localizing products to for the needs of customers.

Competitive advantage

Extent that a company can differentiate and position itself as providing superior customer value, it gains ___.

Service differentiation (point of difference)

Firm can differentiate the services that accompany the product. Ex: jimmu johns is known for speedy delivery where sandwiches come "freaky fast."

People differentiation (point of difference)

Hiring and training better people than competitors do. ex: east cost supermarket chain wegmans has been recognized as a customer service champ with a cult like loyalty among its shoppings. The secret to this is through employees who personify wegmans commitment to customers " everyday you get our best."

Concentrated marketing (quiz)

In which targeting strategy does a firm go after a large share of one or a few small segments?

Concentrated marketing/ niche marketing

Instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments. the firm achieves a strong market position because of its greater knowledge of consumer needs in the niche it serves and the special reputation it requires. --When the firms resources are limited, this type of strategy makes most sense --in addition to differentiation, best suited for products that can vary in design

Unique selling proposition

Many marketers think that companies should aggressively promote only one benefit to the target market. The benefit promotes is known as ___.

Promoting points of difference

Marketers must think through the customers entire experience with the company's product or service. -product -services -channels -people -images **all ways a company can differentiate at different points

More for more

Not only offers high quality, it gives prestige to buyer. Ex: Rolex watches, four season hotels

STP?

Segmenting, targeting, positioning

Concentrated marketing (quiz answer)

The website leftyslefthand.com markets products to left-hand consumers only. Which target strategy does that represent?

micromarketing (quiz answer)

Toyota allows Scion buyers to customize their cars to meet their exact needs and preferences. This is an example of ___.

Operating characteristics, purchasing approaches, situational factors, and personal characteristics

Which of the following are additional variables marketers use to segment business markets but not consumer markets

Psychographics (quiz answer)

Which of the following is a variable used to segment consumer buyers that is not used to segment business buyers?

New entrants finding it easy to enter the segment

Which of the following would make a segment less attractive to enter

Very few actual or pot entail substitute products

Which structural factor would make a market segment attractive to enter?

Service proposition (quiz answer)

Your local pizzeria promises "delivery in 30 minutes of less or the pizza is free." What point of differentiation is that?

positioning (quiz answer)

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

market segmentation (quiz answer)

___ Involves dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies

Perceptual positioning maps

___ show consumer perceptions of their brands vs. those of competing products on important buying dimensions

Differentiated marketing/ segmented marketing

A fries decides to target several market segments and designs separate offers for each one. --best for products that can very in design

Positioning

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

Product differentiation (points of difference)

Brands can be differentiated on features, performance. style and design. ex: Bose positions its audio products on the innovative, high quality listening experiences it gives users. Promising "better sounds through research."

Trageting

Companies have moved away from mass marketing and more toward ____. Which is identifying the market segments, selecting one or more of them and developing products and marketing programs tailored to each. **selecting the segment or segments to enter

Psychographic segmentation

Divides buyers into different segments based on social class, lifestyle, personality characteristics. Sometimes marketers refer to this segmentation as brand tribes

Behavioral segmentation

Divides buyers into segments based on their knowledge, attitudes, uses or responses concerning a product. Many marketers believe that ____ are the best starting points for building a market. -occasion segmentation: market campbells soup more in winter -Benefit segmentation:grouping buyers according to the different benefits they seek from a product. ex: Schwin bikes make over 50 types to benefit each type of biker -user status: regular users, potential users or first time users. -usage rate: light, medium and heavy product users. -loyalty status: buyers can be divided into groups according to their degree of loyalty

Segmentation

Involves dividing market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate marketing strategies or mixed. **divid the total market into smaller markets

Micromarketing

Practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, these people see the individual in every customer. includes: -local marketing -individual marketing

Less for much more

involves meeting consumers lower performance or quality requirements at a much lower price. Ex: costco sores offer less merchandise and consistency and much lower levels of service; as a result they charge you rock bottom. Also spirit wrinkles. You don't get much when you fly this airline because its super cheap. You don't pay for what you don't get

Value proposition (quiz answer)

A ___ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments

More for the same

A company can't attack competitors ____ by positioning its brand as offering more for the same price. Ex: Target positions itself as the "upscale discounter" because it claims to offer more in terms of store atmosphere and services, but at comparable prices to those of walmart and kohls