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What is market segmentation?
the process of dividing the market into distinct groups with distinct needs, characteristics or behaviors who might require separate products or marketing mixes
What are the four ways to segment?
1. geographic customer characteristics
2. demographic customer characteristics
3. buying situations
4. psychographic
What two ways can you segment baking soda?
for cooking and baking!
What do markets use multiple segmentation bases?
to identify smaller, better-defined target groups
What are four points to effective segmentation?
1. similarity of needs of potential buyers within a segment
2. differences of needs of buyers among segments
3. potential of a marketing action to reach a segment
4. potential for increased profit
Which is the best to segment by: income, color preference, or height?
income!!!!
How do you segment international markets?
by geographic location, economic factors, legal factors, and cultural factors
How does Mcdonald's implement food around the world?
they have different food items depending on what that country usually eats and buys
What is an example of inter-market segmentation?
Mercedes-Benz: targets the rich everywhere
What is inter-market segmentation?
a marketing strategy that identifies customers with similar needs across different markets or countries
What is the market-product grid?
it is a framework used to relate the market segments of potential buyers to products offered by an organization
Why do marketers use a market-product grid?
to visually analyze and plan their growth strategies by identifying potential opportunities to expand into new markets with existing or new products
What is a perceptual map?
a perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand
Why do marketers use a perceptual map?
help brand repositioning by showing how customers perceive your brand compared to competitor brands
What is product positioning?
the place a product occupies in consumers' minds based on important attributes relative to competitive products
How do you implement a positioning strategy?
you identify the possible competitive advantages but also choosing the right competitive advantage
What is product repositioning?
changing the place a product occupies in a consumer's mind relative to competitive products
What is the difference between product positioning and product repositioning?
Product positioning refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products. Product repositioning involves changing the place a product occupies in a consumer's mind relative to competitive products.
What factor is estimated or measured for each of the cells in a market-product grid?
Each cell in the grid shows the estimated market size of
a given product sold to a specific market segment
What is an example of product positioning?
Apple positioning itself as a premium brand offering high-quality, innovative technology with a focus on design and user experience
What is an example of product repositioning?
when a company like "Dove" soap, originally marketed as a cleansing product for men, shifted its focus to promote itself as a moisturizing and gentle soap for women,
What is a product line?
a group of closely related product items (length)
What is a product mix decision?
a group of different product lines (width)
What is intangibility?
services cannot be seen, tasted, felt, heard, or smelled before purchase
What I is this an example of? "The brochure for Spa Sydell has photographs of people enjoying the various spa amenities. By seeing the pictures of available treatments at the spa, a customer has a better idea of what she is buying."
Intangibility
What is variability?
The quality of services depends on who provides them and when, where, and how
What I is this an example of? "First, a customer that encounters two employees with very different levels of satisfaction may receive different service quality. This variability in service will make the transaction less certain and therefore, more risky to the customer."
Variability
What is Inseparability?
Services cannot be separated from their providers
What I is this an example of? "When Mandy last got her drive-thru order at the fast-food restaurant, she thought the employee who helped her was cold and unfriendly. The food tasted good but was overshadowed by the employee's demeanor. Since then, Mandy often says something derogatory to her friends about the restaurant based on this single experience. "
Inseparability
What is Perishability?
services cannot be stored for later sale or use
What I is this an example of? "Empty tables at a restaurant during a specific time period represent a lost opportunity for revenue."
Perishability
What is Idle production capacity?
when the service provider is available but there is no demand for the service
What service is this? "The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means."
Idle Production Capacity
What is continuous innovations ?
incremental improvements or modifications to an existing product without fundamentally changing how consumers know the product
What is an example of a continuous innovation?
new improved shaver, detergent, and toothpaste
What are discontinuous innovations?
involves making the consumer learn entirely new consumption patterns to use the product
What is an example of a discontinuous innovation?
wireless router, digital video recorder, and electric car
What is concept development?
Idea for a possible product that the company can see itself offering to the market
What is concept testing?
an early-stage market research method that maximizes the odds of you launching a product or service that people want to buy. You explore the viability of a product or service with its target audience early on and improve its development from the feedback.
What is a synergy?
increase in sales as a result of a company's introduction of a new product
What is an example of a synergy?
A company that sells consumer electronics can increase revenue by selling printers and routers to customers who buy computers.
What is cannibalization?
the loss in sales as a result of a company's introduction of a new product
What is an example of cannibalization?
During the business analysis stage of the new product development process, GoPro considers the likelihood of ________, especially when introducing new, less expensive products like Hero Session that may hurt existing product sales.
What are standard test markets?
offering a product for sale on a limited basis in a defined area
What are the pros of standard test markets?
allows businesses to gauge consumer response, refine offerings, optimize marketing strategies, and minimize the risks of launching new products or campaigns by testing them in a controlled environment before full deployment
What are the cons of standard test markets?
time-consumng, expensive, alerting competitors to a firm's plan
What is commercialization?
Commercialization, the most expensive stage for most new products, is the last stage of the new-product development process. It involves positioning and launching a new product in full-scale production and sales.
What is a regional rollout?
when you introduce a new product sequentially into geographical areas
Why is regional rollout important?
they allow for controlled, gradual implementation of new products, services, or processes across different geographical regions, mitigating risks and allowing for better adaptation to local needs and conditions.
