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Description
Flashcards by Alex Millar, updated more than 1 year ago
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Created by Alex Millar
almost 8 years ago
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| Question | Answer |
| What are the four steps in designing a customer driven market strategy? | Market segmentation Market targeting Differentiation Marketing Positioning |
| What is a market? | A group of potential buyers who need and have the ability, willingness and authority to buy a given product |
| What are the requirements for a market? | Basic Needs and Wants Ability to Pay Willing to Act Authority to do so (legal rights e.g. alcohol 18+) |
| Why are these all important factors | Because if consumers are not able to act it's not really a market place e.g. under 18s is not a market place for clubs/alcohol shops e.g. majestic |
| What else is an important element to note about markets? | That where are different types of markets B2B B2C different buying procedures and behaviours and powers |
| What are the reasons for doing market segmentation anyway | Customer Analysis - different customers have different needs/want/perceptions of value Competitor Analysis - are there any needs they're not fulfilling? Have they missed a target group? Is there something you can do better? |
| What are the reasons for doing market segmentation anyway | Resources - Helps with management and allocation of them. Different customers may require different parts/resources e.g. different gearboxes for BMW and VW Planning - you can tailor marketing plans specifically to behaviours and need of different customer segments |
| what is the order of the steps in developing this customer driven market strategy | Select Customers to Serve SEGMENTATION - divide market into smaller segments TARGETING - choose which segment(s) to serve |
| What is the order of the steps in developing this customer driven market strategy? | Decide on Value Proposition DIFFERENTIATION - differentiate offer to create value POSITIONING - Position the offer in the minds of the target customers |
| What's the end goal of this whole process? | To create value for the target customers |
| What is market segmentation? | Divide large heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs |
| What are the forms of segmentation | No segmentation Single variable segmentation Multi Variable segmentation |
| What does no segmentation mean? | You directly target individuals Mainly in B2B markets although internet and use of cookies has allowed for very tailored B2C adverts/offers |
| What is single variable segmentation? | When you use one individual segmentation bases E.g. geographic by country only Usually used when a company is growing |
| What is multi variable segmentation | Its more complex Its when you use multiple segmentation bases for very specific customer analysis and targeting Have to find the most appropriate base for you organisation/product |
| What do most organisations do during this process | They go through the segmentation over and over again until they hit their goldmine segment |
| Give an example of a company that used/uses mutli variable segmentation | Calvin Klein CKIn2U campain male and female age - young Lifestyle - socialites, sexually active (16/18+) Urban location ...White??? "In2U" text speaks reiterate young target market |
| Segmentation Bases for customer markets | Geographic Demographic GeoDemographic Psychographic Behavioural |
| What does geographic segmentation involve? | Dividing the market into different geographical units Nations, Regions, States, Counties, Cities, Neighbourhoods Size, Density, Climate |
| Give an example of somebody who uses geographic segmentation | TESCO they tailor their stores to the location Extra - out skirts of towns/cities Metro - inner city Express - emergency road side/small town One Stop - neighbourhood local without Tesco Name |
| What does demographic segmentation involve? | Dividing the marketing up into groups based on demography variables Age, Gender, Occupation, Education, Income, Life cycle stage, Family Size, religion, race, nationality |
| Are there any problems with this? | Slightly stereotypical? Especially with regards to age/gender in the plight for equality and LGBT committee |
| What are the stages of the family life cycle | Bachelor Newly Wed Full Nest 1 2 3 Empty Nest 1 2 Solitary Survivor 1 2 Doesn't necessarily happen in that order |
| What is geodemographic segmentation | When you divide markets up into groups based on geographic units and demographic categories ACORN stores data by location and categories it by demography units (very specific categories) |
| What is psychographic segmentation? | Divide market up based on social class, lifestyle and personality Horse & Hound AMEX |
| What is behavioural segmentation? | Dividing the market into groups based on knowledge, attitudes, uses and responses to/of a product |
| What are some behavioural segmentation bases? | Occasion AFTER EIGHTS User Status First Time/regular Usage rate How Often Loyalty Status Benefit segmentation - what is the customer seeking COLGATE whiter teeth, healthy gums, nice breath |
| How can we segment Business markets | Demographic Operating Variables Purchasing approaches Situational factors Individual characteristics |
| What are the demographic factors | industry company size location |
| what are the operating variables bases | Technology User status customer capabilities |
| What are the purchasing approaches bases | Purchasing function Power structure Existing relations Purchase policies Purchasing criteria |
| what are the situational factors | urgency specific application size of order |
| what are the personal characteristics | similarity attitudes to risk loyalty |
| What is intermarket segmentation? | Group consumers together who have similar needs and buyer behaviour even though they're in different countries |
| What are the requirements for effective segmentation | MASDA Measurable Accessible Substantial Differentiable Actionable |
| What is market TARGETING | Evaluating the identified segments and deciding how many and which segments the company can serve best |
| What are the four tiers of segment attractiveness | FIRST TIER - is it profitable in the long term SECOND TIER - how fast is the market growing and what volume can we get THIRD TIER - whats the competition like - will we stand out FOURTH TIER - how stable is it are there any emerging techs that can substitute us |
| What are the strategies for market targeting? | 1. Undifferentiated Marketing 2. Differentiated (segmented) Marketing 3. Concentrated (niche) Marketing 4. Micro Marketing |
| What factors affect the choice of target market strategy | Company resources - budget, capacity Product Variability - phones, cars, laptops Product Life Cycle Stage - growth/decline? Market Variability Competitors market strategy - what needs/who's needs did they miss |
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