Marketing 301 Final Exam Part 2

Involves aggregating prospective buyers into groups, or segments that 1) have common needs and 2) will respond similarly to a marketing action

A business will segment when it expects that this will increase its sales, profit, and return on investment. goes into market segmentation when one-size-fits-all mass marketing no longer exists, one prodct and multiple market segments, and multiple products + multple market segments

House hold size, gender, age, income

Personality, values, lifestyle, needs

Product features, retail store type, direct marketing

Divides customer into groups based on the way they respond to use or knowledge of a product

A concept that suggests 80% of a firm's sales are obtained from 20% of its customers

1) group potential buyers into segments 2) group products to be sold into categories 3) develop a market-product grid and estimate size of markets 3) select target markets and 5) take marketing actions to reach target markets

The estimated market size of a product sold to a specific market segment.
product groupings -> vertical columns
labeling markets -> rows

Target market is a specific group of consumers at which a company aims its products and serivces

1) divide the market into segments or 2) actually pick the target segments. criteria: market size, expected growth, competitive position, cost of reaching the segment

Positioning - refers to the place a product occupies in consumer's minds on important attributes relative to competitive products
repositioning - changing the place a product occupies in a consumer's mind relative to competitive products
- key to repositioning a product is discovering the perceptions of its potential customers

A means of displaying or graphing in 2 dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands as well as its own

1) identify the important attributes (or scale) for adult drinks 2) discover how adults see various competing drinks 3) discover how potential customers see chocolate milk 4) reposition chocolate milk to make it more appealing to adults

Organization's perspective - newness and innovation in their product at 3 levels: product line extension, significant jump in the innovation or technology, true innovation
consumer's perspective - continuous innovation, dynamically continuous innovation, discontinuous innovation