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Chapter 7 - Chapter 7 Sharpening the Focus Target Marketing...

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Chapter 7: Sharpening the Focus Target Marketing Strategy: Selecting and Entering a Market Step 1: Segmentation- dividing based on one or more meaningful shared characteristics Segmenting Consumer Markets Segmenting by Demographics- statistics that measure observable aspects of population, with size, age, gender, ethnic group, income, education, occupation and family structure o Generation marketing- marketing to one generation that have same outlook of priorities o Geodemography- a segmentation technique that combines geography with demographics o Geocoding- customizing web ads so that people who log on in different places will see ad banners for local businesses Segmenting by psychographics- use of “ology” factors to construct market segments o VALS (Values and Lifestyles)- a system that dives the entire U.S pop in 8 seg. Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, Innovators, Survivors Segmenting by Behavior- divides consumers into segments on the basis of how they act toward, feel about or use a good and service. o 80/20 rule- 80 % profits come from 20% customers o long tail- companies can make money by selling small amounts of items only a few people want provided they sell enough different items o usage occasions- indicator used in one type of market segment based on when consumers use a product most Segmenting B2B Markets Step 2: Targeting Evaluating Market Segments
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Developing Segment profiles- description of the “typical” customer in a segment Choosing a Target Strategy o Undifferentiated- to everyone 1 product hits all areas, works temporarily in the beginning o Differentiated- designed for each unique groups in target markets o Concentrated- well known in one particular group, one product for one segment, may change o Custom- one to one, made for customer catered to specifically o Mass Customization- modifies a basic good or service to meet the needs of an individual Step 3: Positioning Develop a Positioning Strategy o Analyze competitors positions o Offer a good or service with a competitive advantage o Match elements of the marketing mix to the selected segment o Evaluate the target market’s responses and modify strategies if needed Bringing a Product to life: The Brand Personality o Brand personality- distinctive image that captures a good’s or service’s character and benefits o Perceptual Map- a vivid way to construct a picture of where products or brands are “located” in consumers’ minds Customer Relationship Management: Toward a Segment of One CRM (cust. relationship management)- philosophy that sees marketing as a process of building long-term relationships with cust. to keep them
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