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22 Cards in this Set
- Front
- Back
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What is important in breaking down markets?
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Attitudes
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What is a market?
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collections of consumers who aren’t necessarily the same but they are more similar than the general population.
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Why is Market Segmentation necessary?
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-More accurate and relevant marketing mix for specific segments of customers
- Improved resource allocation- we wont spend money chasing customers that aren’t interested in our marketing mix -As a result we get BETTER MARKETING RESULTS -Then we get a improved Marketing Return On Investment (ROI) |
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What questions need to be answered for successful market segmentation?
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1.Is there a need for the product in this particular product- no need? Why segment it?
2.Is the segment large enough 3.Is it a growing market or a shrinking market- If it is growing it will be very attractive. Ex: everyone has a VCR but it s a shrinking market (no one wants to market the product) 4.Is it reachable- is there a way to identify people in the market (how do you find these people?) ~To be a reachable market you must pass all 4 criteria |
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What are the 4 criteria that make market segmentation like a funnel
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•Substantial
•Identifiable and measurable •Accessible •Responsive |
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What are the three marketing strategies?
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1. Undifferentiated marketing strategy.
2. Concentrated Marketing Strategy. 3. Differentiated Marketing strategy. |
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What is the Undifferentiated marketing strategy?
Give and example. |
Mass market with one product satisfying one market.
Ex: Gasoline Ex: Armanhamor baking soda |
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What is a concentrated marketing strategy?
Give an example |
Very defined target segment
Ex: Ferrari. Ferrari doesn't care what Ford sells because Ferrari has a very defined customer segment. |
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What is a Differentiated marketing strategy?
And give an example |
There are multiple segments out there and we come up with different marketing mixes for each of these different segments.
Ex: General Motors The have minivans and SUV’s for soccer moms, cars for older people. |
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What are the two questions we use to break down markets?
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1. Who we are
2. What/ how we buy |
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Who we are
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• Geographic’s, where they live, demographics (age, income, education, children) and psychographics (emotions, attitudes) There is info in the market place that feeds this info to company’s. We can break these down and find what products they need.
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What/ how we buy
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We buy on benefits sought (how we differentiate ourselves)
Usage Rate Ex: So many different types of toothpaste |
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Explain the video by Malcolm Gladwell. (Pepsi Example)
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food testing experiment to put appertain in diet Pepsi. They did an experiment to see what percentage would be perfect for the consumer.
THERE IS NO PERFECT PEPSI! THERE ARE PERFECT PEPSIES. |
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Explain the Spaghetti Sauce Example.
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Campbell’s came to Howard and asked for help.
He made 45 different sauces and had people try them. 3 groups were discovered: People like plain sauce, sweet sauce, and extra chunky sauce. There was no line of extra chunky sauce at the grocery store so when Prego came out with extra chunky sauce it immediately took control of the market. |
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What is the point of the above cards?
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The main focus was to get what the customer wants. But we can’t always explain what we want. We have to taste and see what best satisfies us
~ Howard made us realize horizontal segmentation – There are no good/bad mustard there are all different types of mustard that satisfy different people. ~ It’s not about satisfying the world universally. We have to understand variability. No universalism in product and people. You have to segment to people so you can better satisfy their needs. |
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What is important about Henry Ford's invention of the automobile?
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He didn’t know what people wanted. He just used innovation to make transportation faster.
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What is Repositioning?
What are the 4 ways we can reposition our product? |
Changing consumer's perceptions of a brand in relation to competing brands.
Promotion Price Distribution (Placement) Product |
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1. Change the Promotion
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think of different features
Think of an older product that is environmentally friendly and they are trading off the fact that they are environmentally friendly. |
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2. Change the Price
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lowering price
Come out with a product of a different product so customers see it as higher quality Sometimes lowering the price of a product is bad because customers see it as low quality |
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3. Change the distribution
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change the place where the product is distributed to change customers’ view of the product
~if it used to be sold in Jewelry stores and it is now sold in target people perceive it differently. |
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4. Change the Product
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changing the product can alter a customer’s view of a product
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Ozzie and Harriet Tv show and lunchable example.
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Harriet used to get up every morning and put on a dress called “dusters” and high heels and she would clean all day. Ozzie would go to the insurance company and work all day. They had 2 boys. Point: the kids used to come home and have cookies and milk every day when they came home. Now, kids come home and eat Lunchables. If you were trying to market Lunchables toward adult workers to take to lunch, you should change the PRODUCT.
They changed the mustard. This minor change allowed lunchables to change their target market. |
