Marketing Ch. 7

Front 1

Marketing Fragmentation

Back 1

The creation of many consumer groups due to the diversity of their needs and wants

Front 2

Segmentation Variables

Back 2

Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences. Demographic, psychographic, or behavioral in nature

Front 3

Age and Generational Marketing

Back 3

Gen Y: born between 1979 and 1994
Gen X: born between 1965 and 1976
Baby Boomers: born between 1946 and 1964

Front 4

Metrosexual

Back 4

A straight, urban male who is keenly interested in fashion, home design, gourmet cooking, and personal care

Front 5

Family Life Cycle

Back 5

Family needs change over time. Different product categories ascend or descend in importance over the life cycle

Front 6

Income

Back 6

Strongly correlated with buying power. The more discretionary money available, the more likely it is that certain types of products and services will be consumed

Front 7

Social Class

Back 7

Consumers buy according to image they wish to portray rather than where they fall in the framework

Front 8

African Americans

Back 8

12% of the U.S. population. A variety of specialized media, such as Urban sound, rap, or hip-hop radio stations and Ebony, Vibe, or The Source magazines are valued by this group, and provide marketers with an excellent opportunity to reach this segment

Front 9

Asian Americans

Back 9

The fastest growing minority in the U.S. Though the overall size of the sample is small, they earn more than other minority groups, and serve as an excellent target for technology products

Front 10

Hispanic Americans

Back 10

overtook African Americans as the largest minority group following the 2010 census. Commanding over $200 billion in purchase power, they are also an attractive market due to their brand loyalty, geographic concentration by national origin

Front 11

Geodemography

Back 11

Combines geography with demographics

Front 12

Geocoding

Back 12

Customizes Web advertising so people who log on in different places see ad banners for local businesses

Front 13

Psychographics

Back 13

Use psychological, sociological, and anthropological factors to segment a market

Front 14

Values and Lifestyles Framework (VALS)

Back 14

Segments U.S. consumers into eight unique groups based on 1) their primary motivation and 2) their level of resources and innovation.

Front 15

Behavioral Segmentation

Back 15

Segments consumers based on how they act toward, feel about, or use a product. The 80/20 rule suggests the 20% of the purchasers account for 80% of the volume. This shows the importance of targeting heavy users, as it implies that the majority of purchases are made by a minority of the consumers

Front 16

Targeting

Back 16

is characterized by three phases in which marketers evaluate the attractiveness of each potential segment, profile each segment, and decide in which of these groups they will invest resources in order to turn them into customers

Front 17

Evaluation of Market Segments

Back 17

A segmentation scheme must yield at least one viable segment:
1. Have members with similar product needs/wants who are different from members of other segments
2. Be measurable in size and purchasing power
3. Be large enough to be profitable
4. Be reachable by marketing communications
5. Have needs the marketer can adequately serve

Front 18

Developing Segment Profiles

Back 18

Provide a detailed description of the typical customer in terms of key demographic, lifestyle, geographic, and product-usage behaviors

Front 19

Undifferentiated Targeting Strategy

Back 19

The marketer assumes that people have similar needs, and an attempt is made to appeal to a broad spectrum of people

Front 20

Differentiated Targeting Strategy

Back 20

the firm develops one or more products (and marketing strategies) for each of several customer groups. Might also involve marketing a single product differently to different segments, by changing marketing communications to appeal to each targeted group

Front 21

Concentrated Targeting Strategy

Back 21

Firms that focus their efforts on a single segment. One or more products may be promoted to the segment

Front 22

Custom Marketing Strategy

Back 22

Tailoring specifics products to individual customers. Common in personal and professional services, and in industrial marketing

Front 23

Positioning

Back 23

Developing a marketing strategy to influence how a particular market segment perceives a good/service in comparison to the competition

Front 24

Stages in a Positioning Decision

Back 24

1. Analyze competitors positions
2. Offer a good or service with a competitive advantage
3. Finalize the marketing mix
4. Evaluate responses and modify as needed

Front 25

Repositioning

Back 25

Commonly used to change the brand image. Requires redoing a product’s position in response to marketplace changes. May breathe life into Retro brands. A once-popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia

Front 26

Brand Personality

Back 26

A distinctive image that captures the brand’s character and benefits

Front 27

Personality Dimensions

Back 27

1. Sincerity
2. Excitement
3. Competence
4. Sophistication
5. Ruggedness

Front 28

Perceptual Maps

Back 28

Often used to visually describe where products/brands are “located” in consumers’ minds relative to competing brands. The perceptual map can sometimes help marketers understand where to position a new brand

Front 29

Customer Relationship Management (CRM)

Back 29

A systematic tracking of consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs. Facilitates one-to-one marketing

Front 30

Steps of 1-to-1 Marketing

Back 30

1. Identify customers and get to know them in as much detail as possible.
2. Differentiate customers by their needs and value to the company.
3. Interact with customers; find ways to improve cost efficiency and the effectiveness of the interaction.
4. Customize some aspect of the products you offer each customer

Front 31

Touchpoints

Back 31

Any direct interface between customers and a company (online, by phone, in person, etc.)

Front 32

CRM Systems Include:

Back 32

1. Order and delivery tracking websites
2. Call centers
3. Automatic reminder systems
4. Sales contact management software

Front 33

Characteristics of CRM

Back 33

1. Share of customer: as the % of an individual customer’s purchase of a product
2. Lifetime value of the customer: the potential profit a single customer’s purchase of a firm’s products generated over the customer’s lifetime
3. Customer equity: the financial (net) value of a customer throughout the lifetime of the relationship
4. Customer prioritization: focus on high-value customers