Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
Market Segmentation |
Process of subdiving heneral markets into distinct segments with different needs and responds differently to marketing efforts |
|
|
Targeting |
The selection of market segments to which a company plans to sell products/services |
|
|
Positioning |
Seeks to make consumers perceive that a brand occupies a distinct position relatice to other competing brands |
|
|
Advantages of STP |
Focus on organization’s core competencies vs. spreading resources broadly across the market More likely to increase customer satisfaction with product targeted for a specific market Profitability increases as an organization can analyze product targets and retail price charged by segment and select the segment that is most attractive Competitive advantage (e.g. Enterprise rent-a-car) Niche marketing (e.g. Elmhurst Milks) |
|
|
Segmentation Variables |
Functional- performance, reliability Service and convenience Financial Usage Psychological Consumer Demographics Consumer Geographics Consumer Psychographics |
|
|
Targeting Criteria |
Potential- segments that have financial potential Alignment- segments that are best aligned with company's core competencies Marketability- segments are accessible, distinct, and responsive to a value proposition |
|
|
5 Types of segment strategies |
Single segment- concentrate efforts on one market segment Selectice specialization- marketing multiple independent products to multiple segments product/service specialization-focusing on a specific product/service market specialization- market variety of goods/services to one market full market coverage- offer multiple categories products to multiple markets |
|
|
4 approaches in marketing to target segments |
marketing mix- price, product, place, promotion (chanel-luxury) direct marketing campaigns- sell products services directing to customers (amazon) website marketing campaigns- enable customers to select and configure purchases when shopping online (cisco) retail marketing- carry wide selection to serve multiple segments (home depot) |
|
|
perceptual maps |
graphically represents consumers perceptions of product/service attributes the maps show us the position of products/ services in their mine |
|
|
advantages of perceptual maps |
cluster identification cpmpetition new opportunities commcunications vehicle consumer perceptions |
