Segmentation
Segmentation
The process of dividing a whole into smaller, distinct parts or groups based on shared characteristics.
Targeting
Process of selecting one or more market segments to enter.
POD and POP
Points-of-difference and Points-of-parity
Customer Perceived Value
The difference between the prospective customer's evaluation of all benefits and all costs of an offering.
Segmentation, Targeting, and Positioning
The foundation upon which a successful marketing strategy is built.
Four criteria for segmentation
Geographic, Demographic, Psychographic, and Behavior
Mass Marketing
When the firm ignores segment differences and goes after the whole market with one offer.
Positioning
Designing the company's offering and image to occupy a distinctive place in the minds of the target market.
Loyalty
A deeply held commitment to rebuy a preferred product despite situational influences and marketing efforts having the potential to cause switching behavior.
Integrated Marketing Communication
All communication to consumers must deliver a consistent message irrespective of the medium.
Consumer Behavior
The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
Differentiated Marketing
When a company settles on one market segment or a few market segments that provide the best opportunities for them. Each segment is targeted with special offer designed to appeal specifically to the buyers of that market.
Value Proposition
Provides a cogent reason (features and benefits) why the target market should buy the product.
Diet Coke
What is an example of a line extension for Coca-Cola beverages.
Skimming
When a company introduces a product at a high price and then gradually drops the price over time.
Customer Profile
Visual tool marketers use to understand and illustrate the customer segment
TAM, SAM, SOM
Total Available Market, Serviceable Available Market, Serviceable Attainable Market
Points-of-Difference
Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand
Toyota - Lexus
Example of a new brand strategy for Toyota.
Push Strategy
Use sales force and promotion
to induce intermediaries to carry,
promote and sell product to end users.
Hierarchy of Effects
Stages a buyer passes through in the four classic response models (Cognative, Affective, Behavior)
Substantial
The market segment is the largest possible homogenous group worth going after with a tailored marketing program. (Others, measurable, accessible, differentiable, and actionable.)Market Research
Perceptual Maps (Positioning or Gap)
Visual representations of consumer perceptions and preferences of a brand as compared to its competitors.
Brand Equity
The added value endowed to products and services.
Marketing Channels
A set of interdependent organizations participating in the process of making a product or service available to consumers.