Marketing Chapter 8
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Marketing Chapter 8
Covers Chapter 8
Why do we use segmentation?
Since all consumers have different needs and wants, it is not possible to satisfy everyone with same service/product.
What is a three-step process behind segmentation?
deciding which segments to target,
decide how to differentiate and position your product/service to best address the needs of your target market
What are the major segmentation variables for consumer markets?
What is the criteria for a successful segmentation?
Indentifabilty and measureablity
What are the three main targeting approaches?
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
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.
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
What is cannibalization?
Cannibalization happens when a company's product steals market share from another of its own products. (Happens in multisegment targeting)
What is one to one marketing? (targeting)
it is CRM used as a targeting tool. Targeting segments of one customer at a time.
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.