Marketing - exam 2 study guide

Marketing - exam 2 study guide - Chapter 9 Market...

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Chapter 9 Market Segmentation- Sorting potential buyers into groups that have common needs and will respond similarly to a marketing action. Market Segments- groups of prospective buyers that result from market segmentation Product differentiation- Strategy of using different marketing mix activities, such as product features and advertising, to help consumers perceive a product as being different and better than competing products. Market-product grid - Framework relating the segments of a market to products or marketing actions of the firm. It shows different segments of product users as rows in the grid, and different products in the columns. It marks the primary tarked, and also the secondary markets (not usually anticipated). Types of Segments— 1) one product and multiple market segments, 2) multiple products and multiple segments, 3) secments of one—mass customization. Synergy- Increased customer value achieved through performing organizational functions more effeiciently. 5 Key steps in segmenting and targeting markets 1. a. Criteria: Potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments (combine segments if needs Identify Market Needs Benefits in terms of -Product features Expense Quality Savings in time and convenience Process of segmenting and targeting markets Execute marketing program A marketing mix in terms of price, product, Identify Market Needs Steps in segmenting and targeting Markets: 1.Group potential buyers into segments 2. Group products to be sold into Categories 3. Develop a market-product grid and estimate size of markets 4. Select target markets. 5. Take marketing actions to reach target markets. Execute marketing program
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aren’t very different), potential of a marketing action to reach a segment, and simplicity and cost of assignming potential buyers to a segment. b. Ways to segment consumer markets: 1) Customer characteristics—geographic—region. Demographic- household—psychopraphic—lifestyle, and 2) buying situations- benefits sought (buying features), usage/patronage—usage rate. 2. Group products to be sold in categories- like all fruit being together at the grocery store, or wendy’s grouping similar items into value meals. 3. Develop market-produc grid, and estimate size of markets. 4. Select target markets- 5 criteria to use in selecting the target segments: Market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization’s objectives and resources. 5. Take marketing actions to reach target markets- Market-Product Synergies- Balance marketing synergies and product synergies. Marketing synergies— focus efforts on one consumer group, which saves money on advertising, but costs more for more products. Product synergies- focuses on one product, but costs more for advertisement. Fine the balance!
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This note was uploaded on 04/23/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell.

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Marketing - exam 2 study guide - Chapter 9 Market...

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