Market Segments, Target Markets and Product Positioning Flashcards

Terms Definitions
Marketing Concept
we should identify consumer needs and create a marketing mix to meet those needs better than our competitors.
Marketing Segmentation
two choices. Market to everyone or segment the market or markets whose needs we meet or are not currently being met by our competitors
Segment Marketing 3 steps
market segmentation targeting product positioning
Niche Marketing
one specific target market often best for small companies in large market risky niche could be too small to be profitable
Differentiated Marketing
using several different marketing mixes to several target markets targets a large # can lead to large market share can be difficult to maintain cost efficiancy with multiple marketing mixes
Individual Marketing
customize to meet individuals needs ideal because the needs of individual customers are being met requires detailed info on each customer can be difficult/expensive
Demographic Segmentation
gender, age, race, ethnicity, income level, occupation, education level, household size or composition
Psychographic Segmentation
Based on social class, lifestyles, personality and beliefs Often generalized from activities, interests and opinions Can be difficult to categorize consumers but categorizations are likely to be more accurate than simple demographic segmentation
Benefits Desired Segmentation
Marketing based on which benefits are important to which customers requires extensive research
Purchase Rate Segmentation
Usage rate, brand loyalty, current or past user status Often results in reward-based or loyalty-building programs Can be used to stimulate individual marketing
Criteria for a "good" segment
consumers within a segment are homogenous consumers between segments are heterogenous the segment is profitable the segment is reachable
targeting
evaluating each market segment’s attractiveness and selecting one or more segments to enter
Two steps involved in targeting
1.Developing measures of segment attractiveness 2.Selecting the target market
Segment Attractiveness
size expected cost expected growth competition company objectives and resources
Product Positioning
arranging for a product to occupy a clear, distinctive and desirable place relative competing products in the mind of target consumers
Two keys to product positioning
1. Develop positioning for each target 2. Develop a market mix for each target
Brand Equity
The value of a brand to an organization brand loyalty,brand name awareness, perceived quality, brand associations
Brand Position
The perception of your brand in relation to competitor’s bands
Brand Image
how your brand is actually perceived by consumers. You CANNOT control this.
Brand Position
is how you want to be perceived by customers
Positioning
the process of communicating your brand position to consumers to try to make their brand image match your brand position
Positioning statement goal
Show consumers that your brand can offer them more value than the competition can
Position statement types
position by competitiors position by attribute position by use/application position by user position by class
perceptual map
chocolate milk kids adults high/low nutrition
lost horse forecast
making a forecast using the last known value
direct forecast
estimating the value to be forecast without any intervening steps
trend extrapolation
involves extending a pattern observed in past data into the future when described with a straight line it is linear trend extrapolation
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