Studied by 21 people
Market Segmentation
aggregating prospective buyers into groups/segments that have (1) common needs and (2) will respond similarly to marketing action
Product Differentiation
firm use different marketing mix actions to help consumer perceive the product as being different and better than competing products; physical or nonphysical features
Market-Product Grid
framework to relate the market segments of potential buyers to products offered or potential marketing actions; ex. type of sleeper to pillow
Usage Rate
the quantity consumed or patronage (store visits) during a specific period; frequency marketing focuses on usage rate
80/20 Rule
suggests 80 percent of a firm's sales are obtained from 20 percent of its customers
Customer Lifetime Value (CLV)
represents the financial worth of a customer to a company over the course of their relationship
Product Positioning
the place a product occupies in consumers' minds based on important attributes relative to competitive products
Product Repositioning
changing the place a product occupies in a consumer's mind relative to competitive products
Perceptual Map
a means of displaying in two dimensions the location of products/brands in the minds of consumers to enable a manager to see how they perceive competing products/brands, as well as the firm's own product/brand
Head to Head Positioning
competing directly with competitors on similar product attributes in the same target market
Differentiation Positioning
seeking a less-competitive, smaller market niche in which to locate a brand
Segmentation creates value
enables companies to tailor their offering to consumer groups, identify marketing opportunities, and improve consumer satisfaction by enhancing convenience, relevance, and other key facets of the buying experience
Business Benefits
identification of unfulfilled needs, better product design, more targeting promotions, and increased customer satisfaction
Customer Benefits
convenience and time savings, tailored products/services, relevant offers, and personalized experience
Ways to segment markets
demographics, geographic, psychographics, and behavioral (recency, frequency, loyalty, profitability, needs, preferences, decision process)
Criteria in Selecting Target Segments
(1) market size (2) expected growth (3) competitive position (4) cost to reach (5) company fit
Value =
perceived benefits - perceived costs
Elements of a Positioning Statement
(1) defining target market (2) value (3) evidence (4) competitive set
Segmentation Strategies
one product and multiple market segments, multiple products and multiple market segments, segments of one (mass customization)
Cannibalization/
new products stealing customers and sales from older, existing ones
5 Step Process to Segment Market and Select Target Segments
(1) group potential buyers into segments (2) group products to be sold into categories (3) develop a market-product grid and estimate size of markets (groups of related (product synergies) products in columns and segment market (market synergies) groupings in rows, each cell shows estimated market size...) (4) select target markets (5) take marketing actions to reach target markets
Note 
Flashcard (32)