Chapter 7 marketing
product, service (speedy or convenient), channel, people (quality employees), image (brand)
a few ways that companies can try to differentiate themselves to create a competitive advantage
when multiple companies are claiming to be the best at the same attribute
a lot of people say you should focus on one unique selling point for each brand, but when should you position yourself on more than one attribute?
positioning statement
a statement that summarizes company or brand positioning using this form: To (target segment or need) our (brand) is (concept) that (point of difference).
competitive advantage
an advantage over competitors gained by offering greater customer value either by having lower prices or proving more benefits that justify higher prices
positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers
more for the same
attacking a competitor's value proposition by offering more for the same price
intermarket segmentation
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries ex-Coke appealing to THE TEENS world wide
segmentation, targeting, differentiation, positioning
four major steps in selecting a customer driven marketing strategy
socially responsible target marketing
idea that you shouldn't target vulnerable or disadvantaged consumers with controversial or harmful products ex-targeting poor minorities with fast food
economies
local marketing can increase marketing and manufacturing costs by reducing ____________ of scale
differentiated marketing
market coverage strategy in which a firm targets several market segments and designs separate offers for each ex-having six different laundry detergent brands hope for high sales and stronger position within each segment
undifferentiated marketing
mass market coverage strategy in which the firm decides to ignore market segment differences and target the whole market with one offer design product and marketing program that appeals to largest number of buyers
unique selling position
name for one attribute you should choose when deciding on your competitive advantage
can go out of business if your market goes sour, bigger companies with more resources can take market share
risks of just focusing on concentrated marketing
user status
segmenting a market in non-users of your product, ex-users, potential users, regular users, etc. want to retain regular users, win back ex-users, attract non-users
usage rate
segmenting a market into light, medium, and heavy product users
target marketing
selecting target market segments is part of
target market
set of buyers who share common needs or characteristics that a company decides to serve
positioning map
shows how consumers view your brand versus those of competing products on important buying dimensions ex-comparing luxury SUVs on price and orientation
local marketing
tailoring brands and promotions to the needs and wants of local customers ex-offering very specific deals to customers depending where they are in a state, city, country, etc. type of micromarketing
individual marketing
tailoring products and marketing programs to the needs and privileges of individual customers type of micromarketing
value proposition
the full positioning of a brand-the full mix of benefits on which it is positioned part of selecting an overall positioning strategy
product position
the way a product is defined by consumers on important attributes-the place it occupies in consumers' minds relative to competing products
your resources, competitor's marketing strategies, market variability (does everyone in your market have the same taste/react the same to marketing efforts), how uniform or varied the design of your product is
things you should consider when choosing a market targeting strategy
more for more
value proposition where you provide the most upscale product or service an charge a higher price for it ex-LV, Four Seasons but, invites others to say they offer the same for less
geographic locations, economic factors, political and legal factors (type of govt. stability), culture (common languages and values)
what are a few ways you can segment international markets
value proposition
when trying to differentiated and position your product, you need to decide on your ____________ _____________ (how you will create differentiated value for target segments)
identify possible value differences and competitive advantages, choose the right competitive advantages, select an overall positioning strategy
3 steps in choosing a differentiation and positioning strategy
segment size, segment structural attractiveness, company objectives and resources
3 things to consider when evaluating your market segments
more for more, more for the same, more for less, the same for less, less for much less
5 types of winning value propositions
market targeting
evaluating market segments is part of
efficiently, effectively
concentrated marketing targets ____________ and ____________
less for much less
consumers will often give up bells and whistles for a lower price meet consumer lower performance or quality requirements at a much lower price ex-Costco, Aldi
differentiation
differentiating your product or service to create customer value
occasion segmentation
dividing a market according to occasions when they the the idea to buy, actually make their purchase, or use the purchased item ex-heavily advertising your hearty chicken-soup during the winter
age and life cycle segmentation
dividing a market into different age and life cycle groups type of demographic segmentation
geographic segmentation
dividing a market into different geographical units like nations, states, regions, counties, cities, etc. helps localize your product and services, ads, etc. to fit needs of certain regions or cities
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
market targeting
evaluating each market segment and choosing one to serve
micromarketing
customized marketing messages and mass customization (like NIKE ID) are examples of what
behavioral segmentation
dividing a market into segments based on consumer knowledge, attitudes, use of a product, or responses to a product 5 types-occasion, usage rate, loyalty, benefits sought, user status
benefit segmentation
dividing a market into segments based on the different benefits they want from the product requires finding the major benefits people look for in a product class, kinds of people who look for each benefit, and the major brands that deliver each each benefit ex-fit bit makes different versions of its product for people who just want to count calories, people who want high performance heart rate tracking etc.
psychographic segmentation
dividing a market up into different segments based on lifestyle or personality characteristics basing marketing strategy on different lifestyle appeals (urban active, bohemian, etc.) also diff personality characteristics
demographic segmentation
dividing markets into segments based on variables like age, life cycle stage, gender, income, etc.
gender segmentation
dividing up market segments based on gender used in marketing clothing, cosmetics, toys, magazines, etc.
income segmentation
dividing up the market into different income segments used by automobile, clothing, cosmetics, financial, travel services ex-target affluent people with luxury items, less affluent people with dollar store shit lol
costs
for differentiated marketing, need to balance increased potentially increased sales of appealing to many segments with increased ____________ of doing so
undifferentiated, differentiated, concentrated, micromarketing
four different levels that you can carry out market targeting
mosaic
leading consumer segmentation system is ___________
micromarketing
market coverage strategy of tailoring products and marketing programs to needs and wants of specific individuals and local customer segments includes local + individual marketing
concentrated (niche) marketing
market coverage strategy where firm goes after a larger share of one or a few segments or niches you achieve a stronger market position because of greater knowledge of consumer needs in the niche you serve and the special reputation you have in that niche
same for less
offering many of the same brands but at deep discounts from lower cost operating type of value proposition
market share
on a positioning map, the size of each circle represents each brand ____________ ___________
loyalty status
segmenting based on consumer loyalty completely loyal, somewhat loyal, no loyalty, etc. work with high loyal to promote your brand, study non-loyal to find out what's not working
measurable, accessible, substantial(big enough to profitably serve), differentiable (respond differently to different marketing mix elements), actionable
to be useful, market segments should be these 5 things
false
true/false age is good predictor of a person's life cycle, health, work, or family status when doing age and life cycle segmentation good to stereotype?
true
true/false business markets can be segmented in many of the same ways as consumers (geographic, demographic (industry/size), benefits, sought, user status, usage rate, loyalty status) and by operating characteristics, purchasing approaches, situational factors as well
true
true/false companies often use multiple segmentation bases to identify smaller, better-define target groups
true
true/false demographic segmentation is the most popular way to segment because it's easy to measure and needs, wants, usage rates, vary closely with demographic variables
false (large percentage of sales)
true/false heavy users are a small percentage of the market and account for a small percentage of total sales
true
true/false many brands that have traditionally targeting women are starting to target men and vice versa
true
true/false marketing should plan positions that will give their products the greatest advantage in selected target markets, and they must design marketing mixes to create these planned positions
true
true/false occasions segmentation can help boost product usage and consumption (if you encourage consumers to use your product during nontraditional times) the taco bell breakfast!!!!!
true
true/false people in the same demographic group can have very different psychographic characteristics
false (it's hard to do those things)
true/false undifferentiated marketing is a good strategy because its easy to appeal with everyone and compete with more focused firms
true, false (might not have resources to properly serve. focus on smaller, more profitable markets if you need to)
true/false you want to select the market segment that have the right size and growth characteristics for your company true/false you should always serve larger market because they can make you more money
how many differences to promote, which differences to promote
two things to consider when choosing the right competitive advantage
occasion, benefit, loyalty, user status, usage rate
types of behavior segmentation
age, life style, income, gender
types of demographic segmentation
more for less
which winning value proposition likely isn't sustainable for long periods of time
porter's, structural
you need to think about __________ five forces when evaluating segment ___________ attractiveness
unconcentrated, differentiated, concentrated
you should use ______________ marketign with uniform products (like steel or grapefruit) and _________________ or _______________ with products that can vary in design