MARK 3000E ch 6

segmentation

splitting a big group into smaller groups based on similar traits (location, age, income, lifestyle)

good segments are….

measurable, reachable, and profitable

targeting

choosing which segment(s) to sell to ; consider size, growth potential, and fit with your product

positioning

crafting your message so your product stands out ; decide how you want customers to perceive your brand versus others

good segment criteria

heterogeneous within, identifiable and divisible (you can find and reach them), comparable across segments (you can rank and choose)

value proposition

your product’s unique promise to customers ; meets target needs + gives them a reason to choose you

1st step in the STP process

segment the market

2nd step in the STP process

evaluate segments

3rd step in the STP process

choose target market(s)

4th step in the STP process

position product to match their needs

consumer behavior summary

the steps people take to buy, use, and get rid of things ; acts like a map: triggers (need), search, compare, buy, reflect

market

anyone who actually buys or could buy

target market concept

focus on service specific customers

mass marketing

one strategy for everyone (not targeted)

organizational buyer

business buying for operations

positioning strategies

different ways brands can stand out (by feature, quality, value, etc.)