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What is Segmentation?
The subdivision of a market into discrete customer groups that share similar characteristics
What is Targeting?
The identification of which segments to serve (you cannot serve everyone!)
What is Positioning?
- How (the firms hope that) the target market “sees” the product (happens in the mind of the target market)
- Must identify Target Segments before implimenting
- Offers both an internal and an external assessment.
- The firm therefore must possess expertise in both what the firm can provide and what the market wants the firm to provide.
- (Positive / Opportunities) (Negative / Threats)
Marketing tool created to Products and services in relation to their markets.
What is Market Penetration?
- When a company enters/penetrates a market in which current products already exist.
- (Same products being sold to the same customers)
- (Low Risk)
What is Product Development?
- Growth strategy where a business aims to introduce new products into existing markets.(Medium Risk)
What is Market Development?
- Growth strategy where the business seeks to sell its existing products into new markets. (Medium Risk)
What is Diversification?
- Growth strategy where a business markets new products in new markets.
- (High Risk)
- Chart created to help corporations with analyzing their business units or product lines.
- Contains (Cash Cows / Dogs) & (Stars / Question Marks)
What are Dogs (BCG matrix)?
- When a company is financially doing bad in a failing market
- (ex. In the declining market of CD players and are not selling any)
What are Cash Cows (BCG Matrix)?
- When a company is in a failing market but is doing really well
- (ex. being the top seller of CD players)
What is a Question Mark (BCG Matrix)?
- When a company is not doing well but is in a fast growing market
- (ex. Not selling enough smart phones in at your company)
What is a Star (BCG Matrix)?
- When a company is doing very well finacially in a fast growing market
- (ex. Being the top seller of Smart Phones)
What is Consumer behavior?
An understanding of consumers and their needs and purchasing behavior
The order of Maslows Hiearchy of needs
- Physiological Needs – Survival needs of all humans
- Safety Needs– Protection from harm, ill health, etc..
- Belongingness – Need for companionship
- Esteem needs – Needs for things that reflect self esteem, personal worth, & social recognition
- Self-actualization –To actualize all that a person can become….need for personal growth
Direction of Marketing Plan
- Always from Top to Bottom
- (Cannot skip a step)
Why do we Segment?
- To allow the marketing program to focus on the subset of prospects that are "most likely" to purchase the offering / “least likely” to be served by competitionIf done properly, can ensure highest return for marketing expendetures
How to Position?
- Choose dimensions important to the target segment
- Choose dimensions where firm has a competitive advantage