MKT 3010 1st EditionExam # 2 Study Guide Chapters: 9 - 12Know all vocab from the following chapters as well as the information belowChapter 9- Segmentation, Targeting, and Positioning- What are the steps involved in a Market Segmentation/STP Analysis? Which steps involve segmentation vs. targeting vs. positioning?o Step 1: Establish overall strategy or Objectives; Step 2: Segmentation; Step 3: Evaluate Segment Attractiveness: Is this segment worth pursuing?; Step 4: Select Target Market; Step 5:Develop positioning strategy; - What is important when establishing overall strategy or objectives?o Segmentation strategy- looking for a similar characteristic between people (because people in similar groups will have similar wants, needs, etc.)o Consistency- Mission, Objectives, Current situation (How you segment based on these things)- Why do firms segment the market and what does segmentation link?o Helps the firm understand customer: Profile, similarities, dissimilaritieso Links needs to action (how will these similar needs lead to similar actions)1) Identify market needs2) Take steps to segment and target markets3) Execute marketing mix (4 P’s)- How do marketers describe segments? What do each of these entail/what are the components of each? Be able to describe examples of each in detail. If applicable, what tool is used and what does it entail? What are the advantages and disadvantages of each method? Demographic segmentation- based on age, generation, gender ***Most common form of segmentation-easy to do Geographic segmentation- based on region, area, neighborhoodso Proximity marketing- utilizing wireless to gain access (advertising, promoting special deals) to customers in proximity to the storeo Geocoding- used to find out where customers come from Psychographic Segmentation- understanding more about personal characteristics and psychological reasoning—based on three things:1. Self values- life goals: drive consumer needs2. Self image/concept- how you view yourself in context to your life goals3. Lifestyle- how do you live your life on a daily basis to achieve your goals Benefit segmentation- selling products by promoting a special benefit with the product Behavioral segmentation- based on how often you use a product, the way that you use a specific product, and your loyalty to a specific company’s product Geodemographic segmentation- What is the purpose of evaluating segment attractiveness? (i.e. what question is the marketer trying to answer?)o To see if a segment is identifiable, substantial, reachable, responsive, and profitable.- What are the five measures marketers use to evaluate segment attractiveness? What is involvedin each of these? Why is each measure important? (i.e. what does each contribute to understanding segment attractiveness?)o Identifiable- must be unique from other segments, determines marketing mixo Substantial- size of segmento Reachable- customers must know that product exists, what it can do for them, and where they can get ito Responsive- do consumers react positively to the product/brando Profitable- future profitability, market growth, competition, customer loyalty, what is cost of replacing lost customers- What is the key factor when selecting the target market?o The marketer’s ability to pursue such an opportunity or target segment.- What are the four different types of targeting strategies? What are the benefits and weaknessesof each type?o Undifferentiated Targeting Strategy-looking at entire market***was mostly used in production era and least likely to see today Mass marketing Uniform benefits (one type of product) No separate strategies created Lowest cost option but no customer loyaltyo Differentiated Targeting Strategy- breaks up the market Target several market segments Provide variety of different offerings Costly but builds brand loyalty and company strength—don’t have to rely on oneproduct to do well Beware of Cannibalization- producing two or more different products for the same segment (only way this is worth it is if the product attracts consumers fromcompetitors) o Concentrated Segmentation Strategy- breaks up market but only target one segment Niche Marketing Single target market selected Go after a large share of segment Most young companies start here Gets to know customers really wello Micromarketing- segmenting and targeting to individual customers One-to-one marketing Mass Customization Tailor to individual customer Economic downfall lead to an increase in this kind of marketing because people were looking for the increased value that personalized products provided. Technology also lead to an increase because more consumers are feeling comfortable buying online- What is positioning?o Defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products.- What strategies do marketers use when positioning their products/brands? What does each of these entail?o Focus on how product affects the consumer (depends on how much market share a product has) Value, Salient Attributes (determinant attributes), symbol (branding)o Superiority to competitor’s offering- trying to turn consumers away from competitor’s product- What is a perceptual map? What are the five steps marketers follow to derive a perceptual map? What is the ideal point?o Perceptual map- for a segment, where does product fall on this map in terms of the determinant attributes.o Ideal point- the position at which a particular market segment’s ideal product would lie on a perceptual mapo Step 1: Determine consumers’ perceptions and evaluations of the product or service in relation to competitors; Step 2: identify the market’s ideal points and size; Step 3: identify competitors’ positions; Step 4:Determine consumer preferences; Step 5: Select the position; Step 6: Monitor the positioning strategy.- What is repositioning and how is it accomplished? o Moving” a product in the consumer’s mindo Change your marketing mixo Change competitions’ positionChapter 10 – Marketing Research & Information Systems- What is marketing research and what is its objective? o Techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid in decision makers involved in marketing goods, services, or ideas.