Marketing Ch 5, 6

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Market targeting (targeting)

Evaluating each market segment's attractiveness and selecting one or more segments to serve.

Differentiation

Making the offering unique to create superior customer value.

Segmentation Variables

Geographic

Demographic

Psychographic

Behavioral

Target market

A set of buyers who share common needs or characteristics that a company decides to serve.

Product position

The way a product is defined by consumers on important attributes—the place it occupies in consumers' minds relative to competing products.

Concentrated (niche) marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

Individual marketing

Tailoring products and marketing programs to the needs and preferences of individual customers.

Value proposition

The set of benefits (or set of values) that the company offers to consumers (to satisfy their want or need)

Positioning statement

A statement that summarizes company or brand positioning using this form:To (target segment and need) our (brand) is (concept) that (point of difference).

Consumer buyer behavior

The buying behavior of final consumers— individuals and households that buy goods and services for personal consumption.

Consumer market

All the individuals and households that buy or acquire goods and services for personal consumption.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Subculture

A group of people with shared value systems based on common life experiences and situations.

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Reference group

A group that serves as direct or indirect point of comparison or reference in forming a person's attitudes or behavior.

Opinion leader

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.

Influencer marketing

Enlisting established influencers or creating new influencers to spread the word about a company's brands.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

Personality

The unique psychological characteristics that distinguish a person or group.

Motive (drive)

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Belief

A descriptive thought that a person holds about something.

Attitude

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

Need recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need.

Theory of anchoring

Consumers use reference points when making judgments.

Theory of reciprocity

People feel obliged to give back to others.

Theory of consensus

People will look to the behaviors of others to determine their own actions.

Benefits sought segmentation

Divides the market into segments according to the different benefits that the consumer seeks from the product.

Behavioral segmentation

Divides the market into segments according to usage occasion, user status, usage rate, or loyalty status.

Demographic segmentation

Divides the market into segments based on observable variables like age, gender, religion, education, occupation, income levels etc.

Psychographic segmentation

Divides the market into segments according to the personality or lifestyle.

Geographic segmentation

Divides the market into segments according to geographical units (e.g. nations, states, regions, towns, neighborhoods etc.)

Course Objectives

• Enhance our appreciation for marketing.

• Speak marketing language and use the common marketing terminology in business.

• Better analyze marketing problems.

• Make better business decisions.

• Create a cohesive marketing plan.

Marketing

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Marketing philosophy

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Marketing environment

The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.

Ways to differentiate

• the product itself

• the service offering

• brand

• channel

• personnel.