MKT 351 Mid-term - Chapter 7

Positioning statement

To (target segment and need) our (brand) is (concept) that (point of difference).

segmented marketing

differentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each. P&G markets six different laundry detergent brands in the United States (Bold, Cheer, Dash, Dreft, Gain, and Tide), which compete with each other on supermarket shelves. Then, P&G further segments each brand to serve even narrower niches.

Differentiation

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

Local marketing

involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

Competitive advantage

is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices

Value proposition

is the full mix of benefits upon which a brand is positioned

Micromarketing

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, micromarketers see the individual in every customer. Micromarketing includes local marketing and individual marketing.

Product position

is the way the product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products Perceptions Impressions Feelings

niche marketing

a concentrated marketing strategy, 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 or niches.

Market targeting (or targeting)

consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

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. We discuss each of these steps in turn.

Market segmentation

Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

mass marketing

an undifferentiated marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. Such a strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers.

Market segmentation

segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments.

individual marketing

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