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7-1i t s good and good for youChapter SevenCustomer-DrivenMarketingStrategy:CreatingValueforTargetCustomers7-2Customer-Driven Marketing Strategy:Creating Value for Target CustomersCustomer-DrivenMarketingStrategyMarketSegmentationMarketTargetingDifferentiationandPositioningTopicOutline7-3MarketsegmentationDividingamarketintosmallersegmentswithdistinctneeds,characteristics,orbehaviorthatmightrequireseparatemarketingstrategiesormixes.Market Segmentation7-4Market Segmentation7-5SegmentingconsumermarketsSegmentingbusinessmarketsSegmentinginternationalmarketsRequirementsforeffectivesegmentationMarket Segmentation7-6Market SegmentationGeographic segmentationDemographic segmentationPsychographic segmentationBehavioral segmentationSegmentingConsumerMarkets7-7Market SegmentationGeographicsegmentationdividesthemarketintodifferentgeographicalunitssuchasnations,regions,states,counties,orcitiesSegmentingConsumerMarkets7-8Market SegmentationDemographicsegmentationdividesthemarketintogroupsbasedonvariablessuchasage,gender,familysize,familylifecycle,income,occupation,education,religion,race,generation,andnationalitySegmentingConsumerMarkets7-9Market SegmentationAgeandlife-cyclestagesegmentationistheprocessofofferingdifferentproductsorusingdifferentmarketingapproachesfordifferentageandlife-cyclegroupsGendersegmentationdividesthemarketbasedonsex(maleorfemale)7-10Market SegmentationIncomesegmentationdividesthemarketintoaffluent,middle-incomeorlow-incomeconsumersPsychographicsegmentationdividesbuyersintodifferentgroupsbasedonsocialclass,lifestyle,orpersonalitytraitsSegmentingConsumerMarkets7-11Market SegmentationBehavioralsegmentationdividesbuyersintogroupsbasedontheirknowledge,attitudes,uses,orresponsestoaproductOccasionsBenefitssoughtUserstatusUsagerateLoyaltystatusSegmentingConsumerMarkets7-12Market SegmentationMultiplesegmentationisusedtoidentifysmaller,better-definedtargetgroupsUsingMultipleSegmentationBases7-13Market SegmentationPRIZMNEclassifieseveryAmericanhouseholdinto66uniquesegmentsorganizedinto14differentsocialgroups.Thesegroupssegmentpeopleandlocationsintomarketablegroupsoflike-mindedconsumersthatexhibituniquecharacteristicsandbuyingbehaviorbasedonahostofdemographicfactorsUsingMultipleSegmentationBases7-14Market SegmentationGeographic locationEconomic factorsPolitical-legal factorsCultural factorsSegmentingInternationalmarkets7-15Market SegmentationIntermarketsegmentationdividesconsumersintogroupswithsimilarneedsandbuyingbehaviorseventhoughtheyarelocatedindifferentcountriesSegmentingInternationalMarkets7-16Market SegmentationTobeuseful,marketsegmentsmustbe:RequirementsforEffectiveSegmentationMeasurableAccessibleSubstantialDifferentiableActionable7-17Market Targeting TargetmarketconsistsofasetofbuyerswhosharecommonneedsorcharacteristicsthatthecompanydecidestoserveSelectingTargetMarketSegments7-18Market TargetingSegmentsizeandgrowthSegmentstructuralattractivenessCompanyobjectivesandresourcesEvaluatingMarketSegments.7-19Market TargetingUndifferentiatedmarketingtargetsthewholemarketwithoneofferMassmarketingFocusesoncommonneedsratherthanwhatsdifferentTargetMarketingStrategies7-20Market TargetingDifferentiatedmarketingtargetsseveraldifferentmarketsegmentsanddesignsseparateoffersforeachGoalistoachievehighersalesandstrongerpositionMoreexpensivethanundifferentiatedmarketingTargetMarketingStrategies7-21Market TargetingConcentratedmarketingtargetsasmallshareofalargemarketLimitedcompanyresourcesKnowledgeofthemarketMoreeffectiveandefficientTargetMarketStrategies7-22Marketing TargetingMicromarketingisthepracticeoftailoringproductsandmarketingprogramstosuitthetastesofspecificindividualsandlocationsLocalmarketingIndividualmarketingTargetMarketStrategies7-23Market TargetingLocalmarketinginvolvestailoringbrandsandpromotiontotheneedsandwantsoflocalcustomergroupsCitiesNeighborhoodsStoresTargetMarketStrategies7-24Market TargetingIndividualmarketinginvolvestailoringproductsandmarketingprogramstotheneedsandpreferencesofindividualcustomersAlsoknownas:One-to-onemarketingMasscustomizationMarkets-of-onemarketingTargetMarketStrategies7-25Market TargetingDependson:CompanyresourcesProductvariabilityProductlife-cyclestageMarketvariabilityCompetitorsmarketingstrategiesChoosingaTargetMarket7-26Market TargetingBenefitscustomerswithspecificneedsConcernforvulnerablesegmentsChildrenAlcoholCigarettesInternetabusesSociallyResponsibleTargetMarketing7-27Differentiation and PositioningProductpositionisthewaytheproductisdefinedbyconsumersonimportantattributestheplacetheproductoccupiesinconsumersmindsrelativetocompetingproductsPerceptionsImpressionsFeelings7-28Differentiation and PositioningPositioningmapsshowconsumerperceptionsoftheirbrandsversuscompetingproductsonimportantbuyingdimensions7-29Differentiation and PositioningIdentifyingasetofpossiblecompetitiveadvantagestobuildapositionChoosingtherightcompetitiveadvantagesSelectinganoverallpositioningstrategyCommunicatinganddeliveringthechosenpositiontothemarketChoosingaDifferentiationandPositioningStrategy7-30Differentiation and PositioningCompetitiveadvantageisanadvantageovercompetitorsgainedbyofferingconsumersgreatervalue,eitherthroughlowerpricesorbyprovidingmorebenefitsthatjustifyhigherpricesIdentifyingPossibleValueDifferencesandCompetitiveAdvantages7-31Differentiation and PositioningIdentifyingasetofpossiblecompetitiveadvantagestobuildapositionbyprovidingsuperiorvaluefrom:ChoosingaDifferentiationandPositioningStrategyProduct differentiationService differentiationChannel differentiationPeople differentiationImage differentiation7-32Differentiation and PositioningDifferencetopromoteshouldbe:ChoosingtheRightCompetitiveAdvantageImportantDistinctiveSuperiorCommunicablePreemptiveAffordableProfitable7-33Differentiation and PositioningValuepropositionisthefullmixofbenefitsuponwhichabrandispositionedSelectinganOverallPositioningStrategy7-34Differentiation and PositioningTo(targetsegmentandneed)our(brand)is(concept)that(pointofdifference)DevelopingaPositioningStatement7-35Communication and Delivering the Chosen PositionChoosingthepositioningisofteneasierthanimplementingtheposition.7-36_consistsofevaluatingtheattractivenessofdifferentmarketsegmentsandselectingoneormoremarketsegmentstoenter.1.Marketsegmentation2.Markettargeting3.Positioning4.Differentiation7-37_consistsofevaluatingtheattractivenessofdifferentmarketsegmentsandselectingoneormoremarketsegmentstoenter.1.Marketsegmentation2.Markettargeting3.Positioning4.Differentiation7-38Whichofthefollowingdividesbuyersintosegmentsbasedontheirknowledge,attitudes,uses,orresponsestoaproduct?1.Behavioralsegmentation2.Psychographicsegmentation3.Demographicsegmentation4.Gendersegmentation7-39Whichofthefollowingdividesbuyersintosegmentsbasedontheirknowledge,attitudes,uses,orresponsestoaproduct?1.Behavioralsegmentation2.Psychographicsegmentation3.Demographicsegmentation4.Gendersegmentation7-40Ifmenandwomenrespondsimilarlytomarketingeffortsforcomputers,theydonotconstituteseparatesegments.Inthissense,thesesegmentsarenot_.1.feasible2.manageable3.reliable4.differentiable7-41Ifmenandwomenrespondsimilarlytomarketingeffortsforcomputers,theydonotconstituteseparatesegments.Inthissense,thesesegmentsarenot_.1.feasible2.manageable3.reliable4.differentiable7-42_dividesbuyersintodifferentsegmentsbasedonsocialclass,lifestyle,orpersonalitycharacteristics.1.Behavioralsegmentation2.Psychographicsegmentation3.Demographicsegmentation4.Gendersegmentation7-43_dividesbuyersintodifferentsegmentsbasedonsocialclass,lifestyle,orpersonalitycharacteristics.1.Behavioralsegmentation2.Psychographicsegmentation3.Demographicsegmentation4.Gendersegmentation7-44Whichofthefollowinginvolvesgoingafteralargeshareofoneorafewsmallersegmentsorniches?1.Micromarketing2.Differentiatedmarketing3.Concentratedmarketing4.Undifferentiatedmarketing7-45Whichofthefollowinginvolvesgoingafteralargeshareofoneorafewsmallersegmentsorniches?1.Micromarketing2.Differentiatedmarketing3.Concentratedmarketing4.Undifferentiatedmarketing7-46Usinga_strategy,afirmdecidestotargetseveralmarketsegmentsanddesignsseparateoffersforeach.1.micromarketing2.differentiatedmarketing3.concentratedmarketing4.undifferentiatedmarketing7-47Usinga_strategy,afirmdecidestotargetseveralmarketsegmentsanddesignsseparateoffersforeach.1.micromarketing2.differentiatedmarketing3.concentratedmarketing4.undifferentiatedmarketing7-48_involvestailoringproductsandmarketingprogramstotheneedsandwantsofspecificindividualsandlocalcustomersegments.1.Micromarketing2.Differentiatedmarketing3.Undifferentiatedmarketing4.Concentratedmarketing7-49_involvestailoringproductsandmarketingprogramstotheneedsandwantsofspecificindividualsandlocalcustomersegments.1.Micromarketing2.Differentiatedmarketing3.Undifferentiatedmarketing4.Concentratedmarketing7-50Whichofthefollowinghasbeenlabeledasone-to-onemarketing,masscustomization,andmarkets-of-onemarketing?1.Individualmarketing2.Localmarketing3.Differentiatedmarketing4.Micromarketing7-51Whichofthefollowinghasbeenlabeledasone-to-onemarketing,masscustomization,andmarkets-of-onemarketing?1.Individualmarketing2.Localmarketing3.Differentiatedmarketing4.Micromarketing7-52_positioninginvolvesmeetingconsumerslowerperformanceorqualityrequirementsatamuchlowerprice.1.Sameforless2.Moreforthesame3.Lessformuchless4.Moreformore7-53_positioninginvolvesmeetingconsumerslowerperformanceorqualityrequirementsatamuchlowerprice.1.Sameforless2.Moreforthesame3.Lessformuchless4.Moreformore7-54_isthefullpositioningofabrandthefullmixofbenefitsonwhichitispositioned.1.Mediamix2.Valueproposition3.Perceptualmap4.Psychographicanalysis7-55_isthefullpositioningofabrandthefullmixofbenefitsonwhichitispositioned.1.Mediamix2.Valueproposition3.Perceptualmap4.Psychographicanalysis7-56ProjectsGotoiTunes()orRhapsody().Whatuniquemarketsegmentsappeartobethetargetofspecificgenresofmusic?Howdidyoudeterminethesegments?(Objective2)Youveagreedtohelpafriendwithahomefurnishingsbusinesssegmenthermarket.Suggestawaytosegmentthemarketforher.Selectatargetmarkettogoafter,keepinginmindsegmentsizeandgrowth,structuralattractiveness,andprobablecompanyresources.Whattargetmarketingstrategywouldyouuse?Explainyouranswers.(Objective2)7-57TheFederalTradeCommission(FTC)andcitizenactiongroupshaveaccusedtobaccoandbeercompaniesoftargetingunderagesmokersanddrinkers.Forinstance,inthemostrecentSuperBowl,BudLightandBudweiseradsrankedfirstthroughfourthinpopularityamongviewersundertheageof17.Also,underagelistenershearmorethanathirdofradioadsforalcoholicbeverages.Consideringtheforegoing,answerthefollowingquestions.(Objective3)Doyoubelievethecriticismthattobaccoandalcoholcompanieshavereceivedisjustified?Whyorwhynot?Whatdoyoubelievetobethemosteffectivemannertoadvertisetheseproductswithoutexposingunderageconsumers?Small Group Assignments7-58Youhavebeenaskedbyyourcollege/universitytohelpdevelopamarketsegmentationstrategyforthem.Whatmarketsegmentswouldyouencouragethemtopursueandwhy?(Objective2)Individual Assignments7-59Considerthefollowingquestions,formulateananswer,pairwiththestudentonyourright,shareyourthoughtswithoneanother,andrespondtoquestionsfromtheinstructor.Howwouldyoudefinemarketsegmentation?(Objective1)Howdogeographicsegmentationanddemographicsegmentationdiffer?(Objective2)Whichonesegmentationformdoyouconsiderthemostvaluable?Why?(Objective2)Whatisbenefitsegmentation?Giveagoodexample.(Objective2)Think-Pair-Share
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