chapter 7 target market strategy

The creation of many consumer groups due to the diversity of their needs and wants
marget fragmentation
Dividing the total market into different segments based on customer characteristics, selecting one or more segments, and developing products to meet those segments’ needs
Target marketing strategy
The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics
segmentation
Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences
segmentation variable
Segmentation variables include:
Demographics
Generational marketing
Behavioral characteristics
2 Generational marketing
psychological, sociological, and anthropological factors
Behavioral characteristics
born between 1979 and 1994
Generation Y:
born between 1965 and 1978
generation x
born between 1946 and 1964
baby boomers
A straight, urban male who is keenly interested in fashion, home design, gourmet cooking, and personal care
metrosexual
Combines geography with demographics
geodemography
Customizes Web advertising so people who log on in different places see ad banners for local businesses
Geocoding
The use of psychological, sociological, and anthropological factors to construct market segments
Members of psychographic segments typically share activities, interests, and opinions, or AIOS
The VALS2 system segments U.S. consumers into eight unique groups
psychographics
Segments consumers based on how they act toward, feel about, or use a product
behavioral segmentation
Firms CAN make money selling small amounts of items IF they sell enough different items
long tail
Heavy, medium, and light users and nonusers of a product
user status
an indicator used in behavioral market segmentation based on when consumers use a product
Usage occasions
helps B2B firms understand the needs and characteristics of potential customers
Segmentation
A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which segment they will invest resources to try to turn them into customers
Targeting:
Appealing to a broad spectrum of people
undifferentiated target strategy
Developing one or more products for each of several customer groups
Differentiated targeting strategy
Offering one or more products to a single segment
Concentrated targeting strategy
a description of the typical customer in a segment
segment profile
Tailoring specific products to individual customers
Common in personal and professional services, and in industrial marketing
custom marketing strategy
Modifying a basic good or service to meet the needs of an individual
Mass customization
Developing a marketing strategy to influence how a particular market segment perceives a good/service in comparison to the competition
Positioning:
Requires redoing a product’s position in response to marketplace changes
repositioning
A once-popular brand that has been revived to experience a popularity comeback, often by riding a wave of nostalgia
retro brand
A distinctive image that captures the brand’s character and benefits
brand personality
A technique used to visually describe where products/brands are “located” in consumers’ minds relative to competing brands
perceptual map
A systematic tracking of consumers’ preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs
Customer relationship management:
Identify customers and get to know them in as much detail as possible
Differentiate customers by their needs and value to the company
Interact with customers; find ways to improve cost efficiency and the effectiveness of the interaction
Customize some aspect of the products you offer each customer
Four Steps in One-to-One Marketing
look at last slides crm vs cem
look at last slides