Temple University Added to chapter terms MKTG 2101 Marketing Management Exam 2 Chapter 6 9 Appendix 3 Chapter 6 1 Age lifecycle segmentation 2 Behavioral segmentation a Divides market into different age and lifecycle groups a Divides buyers into segments based on their knowledge attitude uses or responses to a product i Occasions ii Benefits Sought iii User Status iv Usage Rate v Loyalty Status 3 Benefit segmentation a Dividing market into segments according to the different benefits that consumers seek from the product 4 Competitive advantage a Advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices 5 Concentrated or niche Marketing a Targets one or a few small segments b Good for company with detailed knowledge of specific market 6 Demographic segmentation a Divides market based on i Age Lifecycle ii Gender iii Ethnicity iv Family Status v Income vi Religion etc 7 Differentiated or segmented Marketing b Example Coca Cola Toyota 8 Differentiation they perceive i BMW Bloomingdales 9 Gender segmentation a Dividing market based on gender 10 Geographic segmentation a Dividing market into i Country a Identifies several segments and designs separate marketing offers for each segment a Firm distinguishes itself from competitors through quality of its offerings b Firm charges more because customers are willing to pay for extra value ii Region iii City iv Density v Climate 11 Income segmentation 12 Individual marketing of individual customers 13 Local marketing 14 Market segmentation a Dividing market into different income segments a Tailoring products and marketing programs to the needs and preferences a Dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs 15 Market targeting a Evaluating potential marketing segments i Dimensions 1 Sales growth profitability ii Structual Attractiveness buyers suppliers iii Company objectives and resources b Selecting target segments 1 Competition substitute products power of i Range from undifferentiated mass marketing to micromarketing c Factors in choosing a strategy i Company resourses 1 Limited Extensive ii Product life cycle PLC Stage 1 New Product Mature iii Competitors Strategies 16 Micromarketing 1 Differentiated Undifferentiated a Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments Includes local marketing and individual marketing b 17 Occasion segmentation a Dividing market into segments according to the different benefits consumers seek from the product 18 Positioning a How offering is defined by consumers on important attributes i Place your product occupies in consumers minds relative to competition b Types i Perceptual Positioning Maps 1 Help define a brands position relative to competitors using 2 key dimensions 19 Product position a The way a product is defined by its consumers on important attributes the place the product occupies in consumers minds relative to competing products 20 Psychographic segmentation a Divides buyers based on social class lifestyle or personality a A set of buyers sharing common needs or characteristics that the characteristics b Very difficult to identify or measure 21 Target market company decides to serve 22 Undifferentiated or Mass Marketing market with one offer 23 Value proposition positioned a A firm decides to ignore market segment differences and go after the whole a The full positioning of a brand the full mix of benefits on which it is Chapter 7 1 Actual product a Product planners need to develop product and service features a design a quality level a brand name and packaging 2 Augmented product 3 Brand a Offering additional consumer services and benefits a A name term sign symbol or design or combo that identifies a product or service i Strong Brand have key advantages 1 High customer awareness 2 Strong brand loyalty 3 Help when introducing new products 4 Less susceptible to price competition 4 Brand equity a The differential effect that knowing the brand name has on customer response to the product or its marketing 5 Brand extension a Leverage successful brands i Kimberly Clark Huggies baby products a A product bought by final consumers for personal consumption 6 Consumer product 7 Convenience product a Frequent purchase b Low Price c Widespread Distribution d Tooth Paste Magazines 8 Core customer value 9 Industrial product a Capital items a Addresses question What is the buyer really buying i Aid in the buyers production or operations including installations and accessory equiptment 1 Factories offices Generators large computers systems a Entering foreign markets through developing an agreement with a license 10 Licensing elevators in the foreign market 11 Line extension a Minor changes to existing products b Diet Coke W Lemon 12 Packaging a Container or wrapper for a product i Primary container What product is in ii Secondary Container box product came in 13 Product 14 Product line a Anything that can be offered to a market for attention acquisition use or consumption that might satisfy a want or need a A group of products that are closely related because they function in similar manner are sold to the same customer groups are marketed thought the same types of outlets or fall within given price ranges 15 Product mix or Product portfolio a Consists of all the product lines and items that a particular seller offers for sale 16 Product quality 17 Service organizations 18 Service inseparability 19 Service intangibility purchase a Characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs a Represent 80 of all US jobs and nearly all new jobs b Service industries include business government and not for profit a Services are simultaneously created and consumed b Customers are often directly involved in delivery i So both provider and customer can affect outcomes and quality a Services cannot be seen felt tasted heard or smelled before b Cannot be displayed transported or stored c You can only experience or participate in them i Customers perceive a greater risk 20 Service perishability a Services are created as needed b Cannot be saved or Inventoried for later sale or use i So there is an inherent problem in coping with varying demand cycles ii Pricing can be used to smooth demand