Marketing Test 2 Ch 6, 7, 8, 9, 10, & 11

Number of differences to promote

-Developing a unique selling proposition (USP) for each brand and sticking to it -Positioning on more than one differentiator

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 -Firms can differentiate in terms of product, services, channels, people, or image.

choosing a targeting strategy factors to consider

Company resources Product variability Product's life-cycle stage Market variability Competitors' marketing strategies

Preemptive.

Competitors cannot easily copy the difference.

Distinctive.

Competitors do not offer the difference, or the company can offer it in a more distinctive way.

The website leftyslefthand.com markets products to​ left-handed consumers only. Which targeting strategy does this​ represent?

Concentrated marketing

Niche Marketing

Concentrated;refers to a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. Goes after a large share of one or a few segments or niches.

Loyalty Status

Consumers can be loyal to brands, stores, and companies

behavioral segmentation- loyalty status

Consumers can be loyal to brands, stores, and companies.

Segmented Marketing

Differentiated; refers to a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

market targeting

Evaluating the various segments based on: -Segment size and growth -Segment structural attractiveness -Company objectives and resources

Major Segmentation Variables

Geographic,Demographic,Psychographic, and behavioral

Customer- Driven Marketing Strategy

Market segmentation, targeting, differentiation, and positioning.

behavioral segmentation- user rate

Markets can be segmented into light, medium, and heavy product users.

3 Types of Market Targeting

Mass marketing (undifferentiated) , Segmented (differentiated) marketing, and Niche (concentrated) marketing

Requirements for Effective Segmentation

Measurable , accessible, substantial , differentiable, and actionable

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

New entrants finding it easy to enter the segment

_____ 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.

Positioning This is the correct answer.

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

Psychographics

3 Major Characteristics of Target Marketing

Segment size and growth, segment structural, and objectives and resources

target market

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

positioning statement

Summarizes company or brand positioning Format: To (target segment and need) our (brand) is (concept) that (point of difference).

Profitable.

The company can introduce the difference profitably.

Important.

The difference delivers a highly valued benefit to target buyers.

Communicable.

The difference is communicable and visible to buyers.

Superior.

The difference is superior to other ways that customers might obtain the same benefit.

Mass Marketing

Undifferentiated; refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

segmenting international markets

Variables include: Geographic location Economic factors Political and legal factors Cultural factors

Product Positioning

Way a product is defined by consumers on important attributes

Marketers must be careful to guard against stereotypes when using​ ________.

age and life cycle segmentation`

Behavioral Segmentation Variable

best starting point for building market segments includes two sub-behavioral segmentation: Occasion and benfit

Affordable.

Buyers can afford to pay for the difference.

Segment size and growth

company wants to select segments that have the right size and growth characteristics

Market Positioning

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.

gender segmentation

dividing a market into different segments based on gender

Geographic Segmentation Variable

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

Market Targeting

evaluating each market segment's attractiveness and selecting one or more market segments to enter. buyers who share common needs or characteristics that the company decides to serve

Segment Structural

examine major structural factors that affect long-run segment attractiveness like strong and aggressive competitors, actual or potential substitute products

multiple segmentation basis

helps companies to identify smaller, better-defined target groups identify and understand key customer segments reach customers more efficiently by tailoring market offerings and messages to customers specific needs. segmentation systems help marketers segment people and locations into marketable groups of like minded consumers

Segmentation Systems

helps marketers segment people and locations into marketable groups of like-minded consumers.

which differences to promote

important distinctive superior communicable preemptive affordable profitable

more for the same

introducing a brand offering comparable quality at a lower price.

Less for much less

involves meeting consumers' lower performance or quality requirements at a much lower price.

Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocers in other neighborhoods. This is an example of​ ________.

local marketing

behavioral segmentation- user status

marketers can be segmented into nonusers, ex-users, potential users, first time users, and regular users

psychographic segmentation

marketers segment their markets using variables such as social class, lifestyle, personality characteristics. the products people buy reflect their lifestyles

Usage Rate

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

User Status

markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users

requirements for effective segmentation

measurable, accessible, substantial, differentiable, actionable

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

micromarketing

winning value propositions

more for more = provides the most upscale product or service more for the same = high quality at lower prices more for less = best winning proposition the same for less = gives a good deal less for much less = meeting consumers lower performance or quality requirements at lower price

Winning Value Propositions

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

Objective and Resources

must consider its own objectives and resources

more for more

providing the most upscale product or service and charging a higher price to cover the higher costs.

The marketing manager at​ Arbor's Delicatessen targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of​ low-fat, low-calorie meals that appeal to dieters.​ Arbors' approach is best referred to as​ ________ segmentation.

psychographic

behavioral segmentation- benefit segmentation

segments divide according to the different benefits that consumers seek from the products

Behavioral segmentation- occasion segmentation

segments divided according to occasions when the buyers get the idea to buy, make their purchase, use the purchased item.

targeting

selected the segment or segments to enter

Perceptual Positioning Map

show consumer perceptions of their brands versus those of competing products on important buying dimensions to plan their differentiation and positioning strategies.

Positioning Statement

summarizes companies or brand positioning

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

Many marketers think that companies should aggressively promote only one benefit to the target market. The benefit promoted is known as​ a(n) ________.

unique selling proposition

market targeting strategies

*Targeting broadly* undifferentiated (mass) marketing -> differentiated (segmented) marketing -> concentrated (niche) marketing -> micro marketing (local or individual marketing) *Targeting narrowly*

Differentiation and positioning has three steps:

-Identifying differentiations to create competitive advantage -Choosing advantages to build a position -Selecting an overall positioning strategy A brand's full positioning is its value proposition.

segmenting business markets

-consumer and business markets used many of the same variable for segmentation -variable used by business marketers for segmentation include: operating characteristics, purchasing approaches, situational factors, personal characteristics

choosing a differentiation strategy

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

Communicating and Delivering the Chosen Position

All the company's marketing mix efforts must support the positioning strategy. Maintain the position obtained through consistent performance and communication. The product's position should be monitored and adapted over time.

socially responsible target marketing

Controversy and concern of target marketing -Vulnerable or disadvantaged consumers are targeted with controversial or potentially harmful products. Socially responsible target marketing should be done to serve both the interests of the company and the interests of those targeted.

differentiation and positioning

Firms must decide which segments to target and on the value proposition. *Product position* is the way a product is defined by consumers on important attributes.

Intermarket (cross-market) segmentation:

Grouping consumers with similar needs and buying behaviors irrespective of their location

At one​ time, Miller Beer was known as the​ "champagne of bottled​ beer." It was targeted at an elite class of customers.​ Later, to increase​ sales, Miller was repositioned to attract members of the​ working, middle-class. What is this segmentation method​ called?

Psychographic

Differentiation & Positioning Strategy

consists of three steps which are identifying a set of differentiating competitive advantages on which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy.

Intermarket segmentation

cross-market; grouping consumers with similar needs and buying behaviors irrespective of their location.

Market Differentiation

differentiating the firm's market offering to create superior customer value.

differentiation

distinguish the market offering to create superior customer value

segmentation

divide the total market into smaller segments

Gender Segmentation

divides a market into different segments based on gender.

Psychographic Segmentation

divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Occasion Segmentation

divides 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

divides the market into segments according to the different benefits that consumers seek from the product.

Demographic Segmentation Variable

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

age and life cycle segmentation

dividing a market into different age and life cycle groups

geographic segmentation

dividing a market into different geographical units, i.e. nations states, regions, counties, cities, or neighborhoods

Income Segmentation

dividing a market into different income segments

income segmentation

dividing a market into different income segments

demographic segmentation

dividing a market into segments based on variables, i.e. such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation

Market Segmentation

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

offering the same for less

offer many of the same brands but at deep discounts based on superior purchasing power and lower-cost operations.

Age,Life-Cycle Stage Segmentation

offering different products or using different marketing approaches for different age and life-cycle groups

positioning

position the market offering in the minds of target customers, *all create value for targeted customers*

Value Proposition

positioning of a brand; refers to the full mix of benefits on which a brand is differentiated and postioned.

If competitors cannot easily copy the benefit a company chooses to​ promote, that benefit is said to be​ _________.

preemptive