Busm 340 Marketing Ch. 7 & 8

Front 1

Four Steps in designin a customer-driven strategy

Back 1

1. Market Segmentation
2. Market Targeting
3. Differentiation
4. Market Positioning

Front 2

Market Segmentation

Back 2

process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs

Front 3

Market Targeting

Back 3

the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Front 4

Differentiation

Back 4

differentiating firm's market offering to create superior customer value

Front 5

Market Positioning

Back 5

arranging for product to occupy clear, distinctive, and desirable place relative to competing products in minds of target consumers

Front 6

Major bases for segmenting consumer markets

Back 6

1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioral segmentation

Front 7

Major bases for segmenting business markets

Back 7

1. Customer-operating characteristics
2. Purchasing approaches
3. Situational factors
4. Personal characteristics

Front 8

Geographic Segmentation

Back 8

divided into nations, regions, states, counties, or cities

Front 9

Demographic Segmentation

Back 9

Most Popular and easiest to measure!
Divided into age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

Front 10

Psychographic Segmentation

Back 10

divides buyers into different groups based on social class, lifestyle, or personality traits

Front 11

Behavioral Segmentation

Back 11

divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product
Occasions
Benefits sought
User status
Usage rate
Loyalty status

Front 12

Individual Marketing

Back 12

involves tailoring products and marketing programs to the needs and preferences of individual customers
Also known as:
One-to-one marketing
Mass customization
Markets-of-one marketing

Front 13

Intermarket Segmentation

Back 13

divides consumers into groups with similar needs and buying behaviors even though they are located in different countries

Front 14

Local Marketing

Back 14

tailoring brands and promotion to the needs and wants of local customer groups; cities, neighborhoods, stores
Benefits:
Increased marketing effectiveness in competitive markets
More customer-specific offerings
Challenges:
Increased manufacturing and marketing costs
Less economy of scale
Logistics
Dilution of company image

Front 15

Micromarketing

Back 15

tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing
Individual marketing

Front 16

Positioning Statement

Back 16

states the product’s membership in a category and then shows its point-of-difference from other members of the category.

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

Front 17

Product Position

Back 17

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

Front 18

Undifferentiated or Mass Marketing

Back 18

targets the whole market with one offer

Focuses on common needs rather than product or consumer differences

Front 19

Value Proposition

Back 19

the full mix of benefits upon which a brand is positioned
More for more
More for the same
Same for less
Less for much less
More for less

Front 20

4 Consumer Product Classifications

Back 20

1. Convenience products: bought frequently, immediately, little comparison (gum,newspaper)
2. Shopping products: compared carefully on suitability, quality, price, and style (cars, furniture)
3. Specialty products: unique characteristics, brand identification (medical serv, $$$ electronics, clothes)
4. Unsought products:
Life insurance
Funeral services
Blood donations

Front 21

Brand

Back 21

name, term, sign, or design that defines seller

Front 22

Brand Equity

Back 22

positive differential effect that knowing the brand name has on customer response to product/service

Front 23

Brand Extension

Back 23

extending existing brand name to new product categories

Front 24

Co-Branding

Back 24

practice of using the established brand names of two different companies on the same product

Front 25

Interactive Marketing

Back 25

training service employees to interact with customers to satisfy needs

Front 26

Internal Marketing

Back 26

Orienting and motivating customer-contact employees and the supporting service people to work as team to provide customer satisfaction

Front 27

Line Extension

Back 27

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

Front 28

Private Brand

Back 28

(store brand) created and owned by reseller of product/service

Front 29

Product Line

Back 29

group of products closely related, function in similar manner, sold to same customer groups, prices

Front 30

Product Mix

Back 30

(product portfolio) set of all product lines and items that seller offers

Front 31

Product Quality

Back 31

characteristics of product/service that bear on its ability to satisfy stated or implied customer needs

Front 32

Service

Back 32

activity or benefit offered that is intangible and does not result in ownership

Front 33

Service Inseperability

Back 33

major characteristic of services. They are bought and consumed at the same time and cannot be seperated from providers

Front 34

Service Ingangibility

Back 34

major characteristic of services. cannot be tasted, seen, felt, heard or smelled bofore they are bought

Front 35

Service Perishability

Back 35

Major characteristic of services--cannot be stored for later use/sale

Front 36

Service Variability

Back 36

Major characteristic of services--quality may very greatly depending on who provides them, when, where, and how

Front 37

Social Marketing

Back 37

use of commercial marketing concepts in programs designed to influence individuals' behavior to improve well-being of individual and society

Front 38

Product Mix Depth

Back 38

Number of versions of product offered in each product line

Front 39

Consistency

Back 39

How closely various product lines are in end use, production requirements, or distribution channels

Front 40

Brand Strategy Decisions

Back 40

Brand Positioning (attributes, benefits, beliefs, values) > Brand Name Selection (selection, protection) > Brand Sponsorship (manufacturers/private brand, Licensing, co-branding) > Brand Development (line/brand extensions, multi-brand, new brands)

Front 41

4 Major Characteristics of Services

Back 41

1. Intangibility
2. Variability
3. Perishability
4. Inseparability

Front 42

Internal Marketing is between

Back 42

Company <--> Employee

Front 43

Interactive Marketing is between

Back 43

Employees <-->Customers

Front 44

External Marketing is between

Back 44

Company <--> Customers