Unit 3 Marketing- STDP

Segmentation
Dividing a market into smaller groups of buyers w/ distinct needs/ behaviors that might require separate marketing strategies or mixes
Targeting
Process of evaluating each market segments attractiveness and selecting one or more segments to enter
Differentiation
differentiating the market offering to create suuperior customer value
Positioning
arranging for a marketing offering to occupy a clear and desirable place relative to competing products in mind of the customers
Undifferentiated Marketing
firm decides to ignore market segment and go after whole market
Differentiated Marketing
a firm decides to target several segments and designs separate offerings for each
Concentrated Marketing
firm goes after a large share of one or a few segments or niches
Micro marketing
tailoring products to match needs and wants of peoples
Benefit Segmentation
Dividing segments according to benefit that customers seek from product
Segmentation Tree
Geographic Segmentation
dividing a market into locations such as nations, regions, cities or neighborhoods
Demographic Segmentation
Segments based on age, gender, income, occupation, education, religion ethnicity
Psychographic Segmentation
segments based on social class, lifestyle, or personality characteristics
Product Use Behavior
Value Proposition
full positioning of a brand- full mix of benefits
Positioning Statement
summarizes company or brand positioning
Requirements for Effective Segmentation
Measurable- Size, Profiles can be measured
Accessible- Effectively reached and served
Substantial- Large or profitable enough to serve
Differentiable- segments conceptually distinguishable
Actionable- Will it work
Tools to Segment?
Personal Segment, Psychographic Segment, Behavioral Segment(Benefit), Demographic Segment, Geographic Segmentation
How to select a target market segment?
Differentiated, undifferentiated, concentrated, micro-marketing
Cross Marketing Segmentation
Segmenting one whole to different types of ethnicities
Position
The market offering will will occupy in the minds of consumers
How do companies differentiate?
Marketing Mix
Brands
Nouns that w/ time and or money represent a market offering
Unique Selling Proposition
Boils down to the most valuable aspect of the brand
Value Proposition Matrix
More for More, More for the same, more for less, the same for less, less for much less
Horizontal Stretching
Product Line Stretching
Upward Stretching
Downward Stretching
How to differentiate: Look at competitors 5 areas
1) Ability to conceive/design
2) Ability to Produce
3) Ability to Market
4) Ability to Finance
5) Ability to Manage/ Execute

**Take info to matrix, include firm itself and competitors. Use a 10 point scale to rank all of the categories of each competitor.

Positioning
Marketers effort to identify a unique selling proposition
Answers 3 questions:
1)Who are the customers
2)What is the set of needs that the product fulfills
3) Why is the product the best option

Solving positioning is solving the marketing mix problem.

Differentiation
Should be clearly differentiated from other competitive product offerings.
Vertically differentiated
If all buyers agree that product A is better than product B. Therefore if they are the same price, no one will buy Product A
Horizontally Differentiated
If products A and B differ elsewhere than quality. If sold at same price, some will buy A and some will buy B