Marketing: Chapter 5

Value Proposition vs Positioning Statement

Value Proposition - Promises a company makes to every consumer - "Big picture" - Connection between a firm's mission and market offering Positioning Statement - Addresses the intended target segment - Who, Brand, What, and Why - Can have multiple statements

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

Lagging adopters

Early Adopters are (15%)

Opinion-leaders but evaluate carefully

Types of B2B Buying Situations

Straight buy/rebuy Modified buy/rebuy Systems selling (a.k.a. solutions selling)

Positioning Statement

Who, What, Why

Loyalty segmentation

consumers can be loyal to brands or companies

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Psychographic segmentation

dividing the market into groups according to variables such as social class, lifestyles and personality characteristics

Behavioral Segmentation

dividing the market into groups on the basis of occasion, benefit, usage, and loyalty

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. However, Fred is an opinion leader in his social networking community and likes to show off the fact that he rides on the trend waves. He is best described as a(n) ________.

early adopter

In which of the following stages of the adoption process does a consumer seek information about a new product?

interest

Usage segmentation

markets can be segmented into light, medium, and heavy product category users

Occasion segmentation

segments divided according to occasions, i.e., when the buyers become most interested to buy

Benefit segmentation

segments divided according to the different benefits that consumers seek from the product

Target market

set of buyers sharing common needs or characteristics that the company decides to serve

Late Mainstreamers (30%)

skeptical, adopt after majority

Laggards (20%)

tradition-bound, adopts an innovation only when it has become something of a tradition itself

Early Mainstreamers (30%)

trend rider, above average

Product Position

within a targeted segment, the place the product occupies in consumers' minds relative to competing products

Intel manufactures microchips and sells them to Lenovo. Lenovo then uses the microchips to make computers and sells the computers to consumers. When Lenovo performs well in the marketplace, demand for Intel's products also increases. Which type of demand does Intel rely on?

Derived demand

Geographic Segmentation

Dividing the market into groups according to variables such as nation, region, city size, statistical area, density, etc.

Many car manufacturers now sell hybrid cars. Chevrolet Malibu is one of the hybrid brands, and its positioning statement is: "For middle-class American families who require transportation powered by efficient energy, Chevrolet Malibu is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

Point of difference

Innovators (5%) are

Risk-takers