Marketing Chapter 8

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Marketing Chapter 8
2014-02-10 20:26:41

Covers Chapter 8
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  1. Why do we use segmentation?
    Since all consumers have different needs and wants, it is not possible to satisfy everyone with same service/product.
  2. What is a three-step process behind segmentation?
    • Segment market,
    • deciding which segments to target,
    • decide how to differentiate and position your product/service to best address the needs of your target market
  3. What are the major segmentation variables for consumer markets?
    • Geographic,
    • demographic,
    • Pscyhographic,
    • usage,
    • benefits
  4. What is the criteria for a successful segmentation?
    • Responsiveness,
    • Accessible,
    • Substantiality,
    • Indentifabilty and measureablity
  5. What are the three main targeting approaches?
    • Undifferentiated
    • Concentrated¬†
    • Multi Segment
  6. What is Undifferentiated Targeting? and its pros and cons
    • Marketing the same product to the entire market the same way.
    • +low cost for marketing
    • +Allows for efficient production of large volumes.
    • -Universal offering not adapted to differences
    • vulnerable to competition
  7. What is concentrated targeting? What are pros and cons?
    • The company selects one segment for its marketing efforts.
    • +Resources are concentrated in one area.
    • +Company can develop a highly specialized marketing
    • -all eggs in one basket, problem is segment shrinks
    • -company vulnerable if competition increases in segment.
  8. What is multi segment targeting? What are pros and cons?
    • Company targets two or more segments with different marketing mix for each. Difference can range from new promotion to entirely new product.
    • + Company can satisfy larger share of market.
    • +increases sales volumes compare to concentrated strategy¬†
    • -more costly
    • -cannibalization
  9. What is cannibalization?
    Cannibalization happens when a company's product steals market share from another of its own products. (Happens in multisegment targeting)
  10. What is one to one marketing? (targeting)
    it is CRM used as a targeting tool. Targeting segments of one customer at a time.
  11. What is positioning?
    Positioning is a design of and implementation of a marketing mix to create an image of the brand in the customers mind relative to competitors.