Term
| Name the (5) stages in the market segmentation or "STP" (segmentation, targeting, positioning) analysis |
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Definition
1. Establish overall strategy or objectives
2. Profile segments
3. Evaluate segment attractiveness
4. Select target market
5. Identify and develop positioning strategy |
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Term
| Name (4) segmentation bases |
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Definition
1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation: how consumers describe themselves
4. Behavioral segmentation: based on the benefits consumers derive from products or services
- Geodemographic segmentation: the grouping of consumers based on the combination of the above segments |
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Term
| Name the (3) components of psychographics |
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Definition
1. Self-values: goals for life, not just the goals one wants to accomplish in a day
2. Self-concept: the image a person has of him or herself
3. Lifestyles: refers to the way a person lives his or her life to achieve goals |
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Term
| Name the (4) criteria used to determining if a segment is worth pursuing |
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Definition
Is the market -
1. Identifiable: who is within the market
2. Reachable
3. Responsive
4. Substantial and profitable |
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Term
| Name the formula used for finding segment profitability |
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Definition
| segment profitability = (segment size) x (segment adoption %) x (purchase price x # of times product is bought by customer) x ((selling price - variable costs) / selling price) - (fixed costs) |
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Term
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Definition
| Customer Lifetime Value: the total value of purchases of the customer over a lifetime of patronage |
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Term
| Name the (4) basic segmentation strategies used when finding a target market |
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Definition
1. Undifferentiated segmentation strategy/mass marketing: Used if the product or service is perceived to provide the same benefits to everyone
2. Differentiated segmentation strategy: a firm targets several market segments with a different offering to each
3. Concentrated segmentation (niche) strategy: selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs
4. Micromarketing: Extreme form of marketing that tailors a product or service to suit an individual customer's wants or needs |
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Term
| Define: positioning statement |
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Definition
| Expresses how a company wants to be perceived by consumers |
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Term
| Name the (5) ways firms position their products and services |
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Definition
1. Value: the relationship of price to quality
2. Product attributes: focuses on attributes of the product that are most important to the target market
3. Benefits and symbolism: emphasizes the benefits of the brand as well as the psychological meaning of the brand to consumers
4. Competition: head-to-head positioning
5. Market leadership: emphasizing leadership position in the industry |
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Term
| Name the (5) stages to developing a positioning strategy |
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Definition
1. Determine consumers' perceptions and evaluations of the product or service in relation to competitors'
2. Identify competitors' positions
3. Determine consumer preferences
4. Select the position
5. Monitor the positioning strategy |
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Term
| Define: brand repositioning |
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Definition
| A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences |
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Term
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Definition
- Companies should reposition their brands to keep up with changes in the marketplace or to put a fresh spin to their stale and stodgy brand
- Disadvantage: if its not done well, the company risks alienating its core customer while simultaneously failing to attract new customers
- May spur new marketing opportunities
- Can change the quality image of the brand
- Can breathe life into old brands |
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