+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Market Segmentation
|
Involves aggregating prospective buyers into groups that..1. have common needs2. will respond similarly to a marketing action188
|
|
Market Segments
|
Relatively homogenous groups of prospective buyers that result from the market segmentation process
- people who are relatively similar to the others in buying comsumption188 |
|
Effective Marketing does two things..
|
Forms meaningful groupings
develops specific marketing mix actions 188 |
|
Marketing segmentation links
|
1. identify market needs
2. link needs to actions 3. executive marketing program actions 188 |
|
Product differentiation
|
The strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products
188 |
|
Segmentation strategies (3)
|
1. one product and multiple market segments
2. multiple products and multiple market segments 3. segments of one or mass customization |
|
Example of "one product and multiple market segments"
|
Sports illustrated issue with 4 different covers
harry potter and different covers 189 |
|
Multiple products and multiple market segments
|
Some call it Tiffany/Walmart strategy (two tier strategy)
firms now offere different ariations of the same basic offering to high-end and low-end segments. abercrombie jeans vs old navy 190 |
|
Segments of one: mass customization
|
Tailoring goods or services to the tastes of individual customers on a high-volume scale
next step past "build-to-order" (BTO), manufacturing a priduct only when there is an order from a customer ex: apple restricts its products to only a couple models and can build a computer in 4 mins --> cuts delivery time 191 |
|
The segmentation trade off: synergies versus cannibalization
|
Organizational Synergies: the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently
Cannibalization: with increased customer value comes adding new products or new chain of stores. sometimes new chains will steal customers and sales from the other chain 191 |
|
5 step process for segmenting and targeting markets
|
1. group potential buyers into segments2. groups products to be sold into categories3. develop a market-product grid and estimate the size of markets4. select target markets5. take marketing actions to reach target markets
|
|
Criteria to use in forming the segments
|
1. simplicity and cost-effectiveness of assigning potential buyers to segments
2. potential for increased profit 3. similarity of needs of potential buyers within a segment 4. difference of needs of buyers among segments 5. potential of a marketing action to reach a segment |
|
What should you do if there isnt too much of a difference in needs between segments
|
Combine them into fewer segments 192
|
|
Ways to segment consumer markets
|
Geographic segmentation
demographic segmentation psychological segmentation behavioral segmentation |
|
Frequency marketing
|
Focuses on usage rate
encourages to become loyal customers |
