Using location based social networks such as Foursquare and local marketing

Using location based social networks such as

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Using location-based social networks such as Foursquare, and local marketing deal-of-the-day services such as Groupon, local retailers can target consumers based on where they are right now Local marketing has drawbacks o Can drive up manufacturing & marketing costs by reducing economies of scale o Create logistics problems as companies try to meet varied requirements of different regional & local markets Local marketing helps company market more effectively in face of pronounced regional & local differences in demographics & lifestyles Individual Marketing Individual marketing: tailoring products & marketing programs to needs & preferences of individual customers o Also known as mass customization Today’s marketers have tools to interact on one-to-one basis w/masses of customers to produce products that are in some way customized to individual Companies are hyper-customizing everything from food to artwork B-to-B marketers are finding new ways to customize their offerings o Ex: John Deere manufactures seeding equipment that can be configured in more than 2 million versions to individual customer specifications Mass customization provides a way to stand out against competitors Mass customization has made relationships w/customers more important o Becoming marketing principle for 21 st century Choosing Targeting Strategy Companies need to consider many factors when choosing market-targeting strategy Which strategy is best depends on company resources o When firm’s resources are limited, concentrated marketing makes most sense Best strategy also depends on degree of product variability
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Product’s life-cycle stage must be considered o In mature stage of product life cycle, differentiated marketing makes more sense Variability o Most buyers have same tastes, buy same amounts, & react same way to marketing efforts- undifferentiated marketing can be used Competitors marketing strategies are important Socially Responsible Target Marketing Smart targeting helps companies become more efficient & effective by focusing on segments they can satisfy best & most profitably Targeting also benefits consumers o Companies serve specific groups of consumers w/offers carefully tailored to their needs Target marketing sometimes generates controversy & concern o Biggest issues involve targeting of vulnerable & disadvantaged consumers w/controversial or potentially harmful products Other problems arise when marketing of adult products spills over into children’s segment o Victoria’s Secret o Digital era may make children even more vulnerable to targeted marketing messages o In Canada, advertising to children is strictly controlled by several organizations Most market targeting draws no criticism because it benefits consumers In target marketing, issue is not really who is targeted but rather how & for way Differentiation and Positioning Product position: the way the product is defined by consumers on
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  • Spring '15
  • Marketing,  Companies,  Marketers

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