Chapter 6 Segmentation and Targeting
Definitions of Segmentation and Targeting
Segmentation the process by which a market is divided into distinct subsets of
customers based on the identification of similar needs and characteristics that lead them
Product and Brand Strategy Nothing on test from Chapter 12 Lecture only
A brand represents a promise of benefits
Augmented (improved) product
beyond the core product
Remember how do people buy_
Service, warranty, delivery, associated benefits, etc., may
Pricing Strategy No book chapter
Relationship between cost and price; relationship b/t target cost and price
3 Pricing Paradigms:
1. Cost-based pricing Cost + specified markup
What is the cost-plus delusion?
Cost-plus pricing will allow
Chapter 8 New Market Entries
Relative volume of new-to-the-world vs. other types of new
Product life cycle how does marketing change during each stage?
Markets Evolve: Consider corded (as opposed to cordless) telephones.
Marketing is an ongoing process an
7 Attractive elements of New Economy Technologies
1) Syndication of information.
Create it once; sell it hundreds of times. Moves marginal costs to zero.
Noel joined MyFreeCE.com (not free, but $29.95/year)
Versioning value is in both the information and
Marketings Role in Influencing Business
Analyze a firms strengths and weaknesses and develop new directions for growth and
Marketing mgt usually knows the trends and conditions in the market.
Market analysis is incorporated into the planning
Chapter 13 Marketing Metrics Its all about results
Metrics are about understanding the market and most importantly where cash comes from
The Performance Measurement Process
Should all companies use the same set of metrics? If no, why?
Marketing Metrics a
Tend to operate according o the business philosophy known as the marketing concept
Able to quickly adapt products and functional programs to fit changes in that
environment. Such firms pay a great deal of attention to customer research
Macro Trends in Marketing Management
Demographic: aging, AIDS, imbalanced population growth, increased
immigration, declining marriage rates
Sociocultural: business ethics, fitness and nutrition,
Snickers snack food
Tootsie Roll A low-fat candy since 1896
Strategy a fundamental pattern of present and planned objectives, resource deployments,
and interactions of an organization with markets, competitors, and other environmental
1. Five Components of Strategy
Scope, Goals and Objectives, Resource Dep
Chapter 7 Differentiation and Positioning
Definitions of Differentiation and Positioning
Positioning responds to those heterogeneous needs and wants
It is both the place a brand occupies in consumers minds relative to their needs
and competing brands, an