Flashcards
Marketing Chapter 8
Cards in this deck (19)
- 1Market* People or organizations with needs or wants & with the ability & willingness to buy
- 2Purpose of Segmentation- Markets have a variety of product needs & preferences
- Marketers can better define customer needs
- Decision makers can define objectives & allocate resources more accurately - 3Criteria for Successful SegmentationSubstanially: segment must be large enough to warrant a special marketing mix
Identifiabillty/Measurablity: segments must be identifiable & their size measureable
Accessibility: members of targeted segments must be reachable with marketing mix
Responsiveness: unless segment responds to a marketing mix differently, no separate treatment is needed - 4Bases for Segmenting Consumer Markets1. Geography: region, market size, market density, climate
2. Demographics: age, gender, income, race/ethincity, family life cycle
3. Psychographics: personality, motives, lifestyle, geodemographics
4. Benefits Sought: benefits sought
5. Usage Rate: former, potential 1st time, light or irregular, medium, heavy - 580/20 PrincipleA principle holding that 20% of all customers generate 80% of the demand
- 6Steps in Segmenting Markets1. Select a market for study
2. Choose bases for segmentation
3. Select descriptors
4. Profile & analyze segments
5. Select target markets
6. Design, implement, maintain marketing mix - 7Strategies for Selecting Target Markets1. Undifferentiated
2. Concentrated
3. Multisegmented - 8Undifferentiated StrategyAdvantages:
- Potential savings on production & marketing costs
Disadvantages:
- Unimagitive product offerings
- Company more susceptible to competition - 9Concentrated StrategyAdvantages:
- Concentration of resources
- Meets narrowly defined segment
- Samll firms can compete strong positioning
Disadvantages:
- Segments too small, or changing
- Large competitors may market to niche segment - 10Multisegment StrategyAdvantages:
- Greater financial success
- Economies of scale
Disadvantages:
- High costs
- Cannibalization - 11One-to-One Marketing*Individualized, information intensive, long-term, & personalized with a goal of cost reduction, customer retention, increased revenue, & customer loyalty
- 12Trends of One-to-One Marketing1. One-size-fits all marketing is no longer effective.
2. Direct & personal marketing will grow to meet needs of busy consumers.
3. Consumers will be loyal to companies that have earned & reinforced their loyalty.
4. Mass-media approaches will decline as technology allows for better customer tracking. - 13Positioning*Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
- 14Effective Positioning1. Assess the positions occupied by competing products
2. Determine the dimensions underlying these positions
3. Choose a market position where marketing efforts will have the greatest impact - 15Product Differentiation*A positioning strategy that some firms use to distinguish their products from those of their competitors.
- Distinctions can be real
or perceived. - 16Competitive Advantage*An advantage over competitors gained by offering greater consumer value either by having lower prices or providing more benefits that justify higher prices
- Firms can differentiate in terms of product, services, channels - 17Winning Value PropositionsMore 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 a lower price - 18Positioning Bases1. Attribute
2. Price & Quality
3. Use or Application
4. Product User
5. Product Class
6. Competitors - 19RepositioningChanging perceptions of a brand in relation to competing brands
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- Business Analyst Marketing Flashcards on Marketing Chapter 8, created by Jack Fogel on 06/10/2025.
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- Jack Fogel
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