social media exam 1

segmentation targeting & Promotion (STP)

the division of customers into groups, evaluating them and choosing which to go after, how to get into the mind of the customers

segmentation is done because

you cannot appeal to everyone, helps understand what the customer wants and how to market it

geographic segmentation

based on location

demographic segmentation

measurable stats like age, gender, income and education

psychographic segmentation

personality traits, values, opinions, social status

segmentation vs targeting

identifying groups vs engaging with them

undifferentiated/mass targeting

treats the market as if it was a homogenous group, useful for universal products (salt, toilet paper)

• pro: broad reach, keeps cost down

• con: limited personalization to niche audiences

differentiated targeting

distinct campaigns for more than one segment, creating different products and campaigns for distinct customer segments rather than serve everyone the same way (apple w various iPhones)

• pros: Builds bran loyalty w tailored offerings

• cons: more expensive to utilize

niche/concentrated targeting

zeroing on one segment to dominate the segment; if you can dominate you can lose it all (alienwave pc gaming)

• pros: strong expertise, differentiation

• cons: risky if niche shrinks

customized/individual targeting

personalized offers at the individual customer level (luxury marketing, b2b, tailored service models)

• pros: highly relevant

• cons: resource-intensive

consideration for targeting

market diversity and size, available resources, business goals, customer expectations

brand positioning

how your brand is perceived vs it competitor, the distinct identity that matters to an audience

effective positioning

relevant to audience unique believable and defensible

brand

name tone symbol or design that identifies the good/service of a seller, the perception people have when they think of a business or product

why branding matters

differentiated in crowded markets

trust and loyalty

emotional connection

drives higher perceived value

forms of brand development

manufacturer
private label
family
individual

manufacturer brands

focuses on building equity, created and owned by the producer/product, often has large brand recognition and loyalty (nike)

Private Label

owned by retailer/supplier rather than manufacturers, offers higher margins for retailers and lower cost on alternative brands (Kirkland)

family branding

a single name brand for multiple products leveraging existing brand equity for new products (Apple, iPad, iPhone, macbook)

Individual Branding

single product/product line with the risk of brand delusion if the product fails (proctor and gamble with multiple brands e.g. tide, pampers)

brand loyalty

built through consistency, positive experiences and trust that goes from recognition to preference to trust of a brand

brand equity

the value of a brand in the market place, the premium customers are willing to pay, built from awareness associations, perceived quality and loyalty

brand measurements

awareness: how well a customer recognizes a brand
customer loyalty: asses the a degree that customers consistently choose a particular brand
brand association: attributes and quality customers associate with a brand
net promoter score: measures customers satisfaction and loyalty through asking wether customers will recommend the product