Chapter 7: Customer-Driven Marketing Strategy

Front 1

Define: Differentiation

Back 1

Process of differentiation a firm's market offering to deliver superior value and increase brand equity.

Front 2

Define: Market targeting

Back 2

The process of evaluating the attractiveness of segments and selecting one or more.

Front 3

What are the 4 segmentation variables?

Back 3

Geographic, Demographic, Psychological, Behavioral

Front 4

What are the 3 bases of psychographic segmentation?

Back 4

Social Class, Lifestyle and Personality (Self-Concept)

Front 5

What are the 4 bases for behavioral segmentation?

Back 5

Occasion, benefits sought, user status (& user rate), Loyalty Status

Front 6

Define: Intermarket segmentation

Back 6

Segmenting markets across different countries

Front 7

What are the 5 requirements for effective segmentation?

Back 7

1. Measurable: size, purchasing power, profiles can be measured

2. Accessible: distribution

3. Substantial: profitability

4. Differentiable: homegeneous, respond similarly to a marketing program.

5. Actionable: within company' capabilities

Front 8

What are different factors that determine a segment's attractiveness?

Back 8

Size, growth, competition (substitute products), barriers to entry, buyer power, supplier power

Front 9

Define: Undifferentiated (mass) Marketing

Back 9

Targeting the entire market and ignore market segments, focusing on the common needs of consumers, rather than what is different.

Front 10

Define: Differentiated (segmented) Marketing

Back 10

Targeting several market segments by providing distinctly different market offerings for each.

Front 11

Define: Concentrated (niche) Marketing

Back 11

Targeting a few market segments to gain a larger market share

Front 12

Define: Micromarketing

Back 12

Tailoring market offerings and programs to specific individuals (or local customer segments. E.g. cities, neighborhoods, etc.)

Front 13

When is undifferentiated marketing more favorable?

Back 13

One is for selling uniform products such as water and steel. Another is when the nearly the entire market is sufficiently homogeneous to a specific marketing program.

Front 14

Product Posititioning

Back 14

How a product is defined by consumers in terms of its attributes, relative to competitors'.

Front 15

In what ways can a company differentiate itself in the market?

Back 15

• Product: performance, quality, design
• Service: speed, convenience, delivery
• Channels: channel coverage, expertise and performance
• People: better trained staff
• Image: brand image/equity
  

Front 16

What are the different sets in a Unique Selling Proposition?

Back 16

Consumer Wants, Competitor Positioning, Company Positioning

Front 17

Define: Competitive Advantage

Back 17

Offering greater customer value by offering lower prices, or more benefits or quality which justify higher prices

Front 18

Define: Positioning Statement

Back 18

A statement which summarizes a brand positioning containing: target market, brand name, concept, competitor difference.