Then marketers may attempt to reward current users or

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Then marketers may attempt to reward current users or try to win over new ones 80/20 Rule a marketing rule of thumb that 20% of purchasers account for 80% of product sales - Means that it often makes more sense to focus on the smaller number of people who are really into the product rather than on the larger number who are just casual users - Ex: miracle whip –g 197 Long tail a new approach to segmentation based on the idea that companies can make money selling small amount of items that only a few people want, produced they sell enough different items - Ex: Amazon vs. Barnes and Noble. Amazon has 3.6 million books while B&N carry 100,000. The 3.6 million books that B&N doesn’t carry make up a quarter of Amazon’s revenues Usage occasions an indicator used in behavioral market segmentation based on when consumers use a product most
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Ch 7: Objective 3: Step 2: Targeting Targeting a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customer // the customers group or groups they select are called the firm’s target market Target market the market segments on which an organization focuses its marketing plan toward which it directs its marketing efforts Targeting in 3 steps: 1. Evaluate Market Segments 2. Develop segment profiles o Segment profiles a description of the “typical” customer in a segment which might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product 3. Choosing a target strategy pg. 199 o Undifferentiated targeting strategy appealing to a broad spectrum of people (one product with one marketing mix to more than one target market) i. Ex: pantyhose 1 message, 2 target audiences, 1 strategy ii. Ex: Wal-Mart o Differentiated targeting strategy developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace i. Ex: 1 product, 2 target segments, 2 different strategies ii. Ex: bud light vs. Budweiser iii. Ex: Toyota o Niche or Concentrated targeting strategy focusing a firm’s efforts or offering one product to a single segment i. Ex: blacksocks.com o Custom marketing strategy an approach that tailors specific products and the messages about them to individual customers Mass Customization an approach that modifies a basic good or service to meet the needs of an individual - Customer-oriented company
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Ch 7: Obejective4: Step 3: Positioning Positioning to develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition - This is to provide consumers who belong to a targeted market segment with a good or service that meets their unique needs and expectations Steps in Positioning i.1. Analyze competitors’ positions i.2. Offer a good or service with a competitive advantage i.3. Finalize the marketing mix i.4. Evaluate responses and modify as needed o Repositioning
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  • Spring '08
  • billthompson
  • Marketing, producer, final product

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