SDSU Mktg 370 Ch. 9 Learnsmart
If a market is too SMALL and its buyer power INSIGNIFICANT, it won't generate sufficient profits or be able to support the marketing mix activities
yeah
Markets are not STAGNANT. consumers tastes shift, and competitors REACT to those shifts
yeah
Psychographics is a segmentation method that delves into how consumers actually describe themselves
yeah
The segmentation strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation - its strengths, weaknesses, opportunities, and threats (SWOT)
yeah
Loyal customers buy a substantial amount from the firm. These loyal customers are the most PROFITABLE in the long term to the firm
yup
When everyone is considered a potential user of its product, a firm should use an UNDIFFERENTIATED targeting strategy
yeah
symbols are registered TRADEMARKS that are legally protected by companies that create them
yeah
Different segments should have obvious customer SIMILARITIES within the segment and greater DIFFERENCES across the segments
yup
In the value proposition, "SportsAde offers serious athletes a great-tasting way to stay hydrated during exercise," identify the 4 main components
1. unique difference/benefits - "a great-tasting way to stay hydrated during exercise" is the benefit statement 2. product/service category or concept - the drink 3. target market - "serious athletes" is target market 4. offering name or brand - SportsAde is the brand
Concentrated segmentation
a firm selects a SINGLE target market and focuses all its energies on providing a product to fit that market's needs
Ideal Point
a point where a market segment's desired product would be located on a perceptual map is called an ideal point
Ford Motor Company owns Ford, Lincoln, Mercury, and Volvo automobile brands. Ford Motor uses this variety of brands to pursue a(n) _______ targeting strategy
differentiated
Factors influencing the profitability of a segment over the lifetime of a typical customer relationship
market growth rate
STP process
segmentation: identify groups of similar customers targeting: choose which groups to address positioning: design an appropriate marketing mix
McDonald's often targets families by showing families having a good time in its advertising. This appeals to a family's
self concept
Another term for self-concept
self-image
John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. John's purchasing behavior is a reflection of his ______
self-values
Examples of self-values
sense of belonging self-respect self-fulfillment
Cookie
small text file providing a unique identification for each site visitor
The order of the segmentation, targeting, and positioning process
1. establish strategy or objectives 2. describe segments 3. evaluate segment attractiveness 4. select target market 5. identify and develop positioning strategy
One positioning strategy focuses on the product attributes that are most ______ to the target market
salient
True or False: Positioning a product by value requires that the firm set a low price
False.
True or False: Micro marketing segmentation strategies are rarely implemented using the Internet
False. The internet makes it easier to cater to very small segments efficiently and more inexpensively.
example of Geographic segmentation
McDonalds promotes coffee in cold, rainy Seattle and seasonal seafood meals including lobster and crab in select markets like New England
What does a firm do to assess the target market in light of its own competencies?
SWOT analysis
Market Segmentation
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ________. These groups of buyers might appreciate products or services designed especially for them.
True or False: It is possible for a firm to position its products or services directly against a competitor.
True.
True or False: Value is a popular positioning method because of the relationship between price to quality.
True.
Geodemographic segmentation
a retailer can use __________, which uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood
If a firm positions its product too closely to the competition, they are risking:
a trademark infringement lawsuit
Breakfast cereal manufacturers have separated the market into many segments. Kellogg's makes several diff types of b-fast cereal to _____ several segments
appeal to
When customers visit Hewlett-Packard's website, they can choose from different options based on what types of customers they are and what the purpose is for which they need a computer. This is an example of ______ segmentation
benefit
the circles for a successful value proposition
benefits the company provides customer needs and wants benefits provided by competitors
Market Segmentation approaches
benefits, geographic, psychographic
Marketers ask consumers a series of questions about competitors products in order to determine the products _____ on the perceptual map
brand positions
The Value Proposition
communicates the customer benefits provided by a product/service
Benefit segmentation is often effective. It is relatively easy to portray a product's or service's benefits in the firm's _______ strategies.
communication
"Pork. The Other White Meat." is an advertising campaign that promoted pork as a white meat alternative to chicken or turkey. This is a positioning strategy that focuses on:
competition
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products
competitors
By selecting a single target market and focusing all its efforts on offering a product to fit that market's needs, a firm is using a(n) ________ targeting strategy in marketing to a specific niche.
concentrated
marketers sometimes take into acct that as ppl age their needs change. this is ex. of?
demographic segmentation
Firms are finding that psychographic segmentation is often more useful for predicting consumer behavior than demographics. This is because people who share demographics often have _______ psychological traits
different
Firms using a(n) "_________ targeting strategy" target several market segments with a different offering for each.
differentiated
It is important to ensure that segments are distinct from one another because too much overlap between segments means that ______
distinct marketing strategies are not necessary to meet segment members' needs
It is important to ensure that segments are distinct from one another because too much overlap between segments means that:
distinct marketing strategies are not necessary to meet segment members' needs
Southwest airlines promotes its rapid rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of
ex. of behavioral segmentation
There are limitations to using psychographic segmentation. Psychographics is a more _______ method used to identify potential customers
expensive
Concentrated targeting strategies are generally more ______ than differentiated targeting strategies
focused
Occasion segmentation
form of behavioral segmentation in which segments are formed based on the situation in which the product or service is purchased or consumed for a special event or activity
Behavioral Segmentation
forms market segments based on way consumers use a product, such as more frequently or with greater loyalty
Foster Designs sells diff types of clothing for men and women. they would like to make sure the location of each of their retail stores contains the appropriate assortment of clothing for the area. they should use ________ segmentation
geodemographic
Self-Values
goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life
Demographic segmentation
groups consumers according to objective characteristics such as age, gender, income, education
Benefit segmentation
groups consumers on the basis of the outcomes they seek and derive from the products or service, such as clothing, appliances, toothpaste or paper towels
Firms that wish to change a product's positioning should be aware that:
it is always a challenge to do so
If values provide goals, self-concept is the way we see ourselves, _________ is how we live our lives to achieve goals and provides a method for market segmentation
lifestyle
Justin's Western Wear allows customers to order custom boots. When compared to ordering standard boots, the customized boots take a(n) _______ to receive
longer time
Key factors when marketers focus their assessments on the potential profitability of market segments, both current and future, are:
market competitiveness market access market growth
Compared to most available targeting strategies, differentiated targeting is ______
more expensive
Compared to most available targeting strategies, differentiated targeting is ________
more expensive
VALS
most widely used PSYCHOGRAPHIC segmentation tool shows correlations between psychology and lifestyle choices
B/c each segmentation method has its unique pros and cons, most firms often employ _______ methods
multiple
The first step in the segmentation process is to articulate the vision or the ______ of the company's marketing strategy clearly.
objectives
One of the benefits of a differentiated targeting strategy is that it allows the firm to:
obtain a bigger share of the market
Psychographics studies how people _____ their time and what underlying psychological reasons determine their choices
occupy
When using a perceptual map, a company should select a ______ according to what the market segment it's targeting really wants, or near the ideal point of a product of a segment
position
Sometimes, firms find it difficult to use demographics in their segmentation strategies. this is b/c in some cases demographics
predict consumer wants and needs poorly
Value is a popular positioning method and is the most important considerate for consumers when they make a purchase decision because of its relationship with _______
price and quality
Key criteria considered by marketers to evaluate whether or not a segment is worth pursuing
profitable, identifiable, reachable
Daniel joined an outdoor activities club. He has begun to purchase many books about kayaking and rafting. Borders bookstores sends him email promotions focusing on outdoor activities. This is an example of ______ segmentation, based on lifestyles
psychographic
Persuasive communication and accurate product distribution are techniques used by firms to ______ market segments
reach
Customers in the segment must react similarly and positively to the firm's offering. This is ______ which is an important element of successful segmentation
responsiveness
Once the firm understands how its competitors brands are viewed by the consumer, it should next _______
study how the competitors have positioned themselves
Some _______, like the Nike swoosh, are strong and well known; they create a position for a brand that distinguishes it from the competition
symbols
Companies should convey a clear, distinctive, desirable understanding of what the product or services do or what they represent relative to competing products, in the minds of customers in their _______ market
target
Example of occasion segmentation for a chocolate maker
the company sells its chocolates in simple plastic bags, but also offers it in attractive boxes for gift giving
In the Circles for a Successful Value Proposition, the best situation for a firm is if:
the product or service overlaps with customer needs and wants, but not with competitors' offerings
VALS can be used to help a caribbean resort identify customers most interested in and able to afford tropical vacations. Based on the ______ of its target customers, the resort can develop a successful advertising campaign
underlying motivations
When there is no perceived diff in benefits between competitor's products, the marketing manager should use a(n) ______ targeting strategy
undifferentiated
match each targeting strategy with examples of how that strategy is used
undifferentiated -- sugar, milk, packaged ice differentiated -- proctor and gamble offers pantene, head and shoulders, aussie, and well shampoos Concentrated -- an infomercial firm sells a gadget to better fry and flip one's eggs Mirco-marekting -- a florist designed the bride's and five attendants' bouquets
targeting strategies
undifferentiated, concentrated, micro marketing, differentiated
Perceptual map
used to display, in 2 dimensions, the positions of products or brands in the consumer's mind
firms position products based on methods including
value, salient attributes, competition, symbols
Micro Marketing
when a firm adapts a product or service to meet an individual customer's wants or needs, it is undertaking an extreme targeting strategy called micro-marketing
Geographic segmentation
when a market is grouped by country, region (northeast, southeast), or areas within a region
A well-known symbol can be used as a POSITIONING tool, distinguishing the brand from its competition
yeah
