IM week 3

34 flashcards · Other · by Daniel F.

1. Market strategy tests

   Market segmentation Market targeting Differentiation Positioning

2. market segmentation

   dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes variables that could be used to segment consumer markets are Geographic segmentation, where a market is divided into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods. Demographic segmentation, where a market is divided into segments based on variables, such as age, life-cycle s…

3. In order to segment a market effectively, market segments must be

   Measurable. Accessible. Substantial. Differentiable. Actionable.

4. market targeting

   evaluating each market segment’s attractiveness and selecting one or more segments to serve a firm must look at three factors Segment size and growth. Segment structural attractiveness. Company objectives and resources. Undifferentiated (mass) marketing, which is a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Differentiated (segmented) marketing, which is a market-coverage strategy in which a firm targets sev…

5. target market

   a set of buyers who share common needs or characteristics that a company decides to serve

6. When choosing a market-targeting strategy, a company needs to consider several factors

   The company's resources. The degree of product variability. The product's life-cycle stage. Market variability. Competitor's marketing strategies.

7. Differentiation and positioning

   positioning - arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers value proposition - how the company will create differentiated value for targeted segments and what positions it wants to occupy in those segments product position - the way a product is defined by consumers on important attributes, the place it occupies in consumers’ minds relative to competing products

8. perceptual positioning maps

   show consumer perceptions of a brands in contrary with those of competing products on important buying dimensions.

9. The differentiation and positioning task consists of three steps

   Identifying possible value differences and competitive advantages Choosing the right competitive advantages by deciding how many differences to promote and which differences to promote (Important. Distinctive. Superior. Communicable. Preemptive. Affordable. Profitable.) Selecting an overall positioning strategy.

10. positioning statement

    A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).

11. competitor analysis

    Identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.

12. When having identified the main competitors, the next step is assessing the competitors by

    Determining the competitors' objectives. Identifying the competitors' strategies: strategic group Assessing the competitors' strengths and weaknesses: benchmarking Estimating the competitors' reactions.

13. strategic group

    is a group of firms in an industry following the same or a similar strategy.

14. customer value analysis

    an analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers.

15. management must decide which competitors to compete against

    Are they strong or weak competitors? customer value analysis Are they good or bad competitors? Good competitors play by the rules of the industry. Contrary, bad competitors break the rules.

16. benchmarking

    the process of comparing the company's products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance.

17. approaches to marketing strategy

    strategies that strongly position the company against competitors and give it the greatest possible competitive advantage after evaluating major competitors Three stages Entrepreneurial marketing Formulated marketing Intrapreneurial marketing

18. approaches to marketing strategy Entrepreneurial marketing.

    Most companies are started by individuals who live by their wits, visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention.

19. approaches to marketing strategy Formulated marketing.

    They develop formal marketing strategies and adhere to them closely.

20. approaches to marketing strategy Intrapreneurial marketing

    They pore over the latest number, scan markets research reports, and try to fine-tune their competitive strategies and programs.

21. competitive positioning strategies

    Overall cost leadership Differentiation Focus Losing strategy: middle-of-the-roaders - firms do not pursue one clear strategy

22. competitive positioning strategies Overall cost leadership

    where the company works hard to achieve the lowest production and distribution costs. Low costs allow the company price to go lower than its competitors and win a large market share.

23. competitive positioning strategies Differentiation

    where the company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry. Most customers would prefer this brand if its price is not too high.

24. competitive positioning strategies Focus

    where the company focuses its effort on serving a few market segments well rather than going after the whole market.

25. value discipline competitive marketing strategies

    Operational excellence, Customer intimacy Product leadership

26. value discipline competitive marketing strategies Operational excellence,

    the company provides superior value by leading its industry in price and convenience

27. value discipline competitive marketing strategies Customer intimacy

    where the company provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of target customers

28. value discipline competitive marketing strategies Product leadership

    where the company provides superior value by offering a continuous stream of leading-edge products or services

29. competitive positions in the target market

    Market leader Market challenger Market follower Market nicher

30. competitive positions in the target market Market leader

    the firm in an industry with the largest market share Expand total market. Protect market share. Expand market share.

31. competitive positions in the target market Market challenger

    runner-up firm that is fighting hard to increase its market share in an industry Full frontal attack. Indirect attack.

32. competitive positions in the target market Market follower

    is a runner-up firm that wants to hold its share in an industry without rocking the boat Follow closely. Follow at a distance.

33. competitive positions in the target market Market nicher

    is a firm that serves small segments that the other firms in an industry overlook or ignore By customer, market, quality, price, service. Multiple niching.

34. evolving company orientations

    Competitor-centered company - A company whose moves are mainly based on competitors’ actions and reactions Customer-centered company - A company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers. Market-centered company - A company that pays balanced attention to both customers and competitors in designing its marketing strategies.