Term
| What is market segmentation ? |
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Definition
| Division of the market in subsets of consumers with similar needs |
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Term
| What is target marketing ? |
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Definition
| Evaluating the attractiveness of each segment to identify which will be served by the company |
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Term
| What is product positioning ? |
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Definition
| Designing distinct, valued, and perceptual differences for a product and marketing mix to get competitive advantage in the target market |
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Term
| Which market realities make segmentation imperative ? |
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Definition
Maturing markets generate competition
Differences in income, education
Specialized media |
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Term
| What are market segmentation criteria ? |
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Definition
| Demographic, Geographic, Behavioural (benefit sought vs user/volume/loyalty segmentation), Lifestyle |
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Term
| What are the 5 steps in Constructing a Market-Attractiveness/Competitive-Position Matrix for Evaluating Potential Target Markets ? |
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Definition
| choose criteria to measure attractiveness/competitive position factors, weight, assess current position of target markets, project the future position and evaluate it |
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Term
| What are the criteria to measure Market attractiveness and competitive position factors |
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Definition
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Term
| What are the three common targeting strategies ? |
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Definition
| Niche-Market (small markets, specific needs), Mass-Market (ignore segments,Differentiated (several segments, products designed for each) |
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Term
| What are the 7 steps in the positioning process ? |
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Definition
-Identify relevant set of products for the target market
-Write product positioning/value proposition
-identify the set of attributes in which offers compete
-collect information about perception of attributes related to each product
-determine product's current location
-Determine customers' most preferred combination of attributes
-Examine the fit between preferences of market segments and current position of product |
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Term
| What are the three types of strategy for competitive advantage ? |
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Definition
| Cost leadership, differentiation, focus |
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Term
| What are the 4 types of competitive strategies related to differentiation/cost leadership |
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Definition
From low to high emphasis on new product-market growth :
Reactor, Defender, Analyzer, Prospector |
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Term
| On what dimensions do business strategies differ ? |
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Definition
| Scope, goals (adapt, efficiency, effectiveness), resource deployment, synergy |
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