Marketing - Final Exam Prep PDF

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MARKETING FINAL EXAM PREPMARKET TARGETINGThe process of evaluating each market segment’s attractiveness and selecting one or more segments to enter (Armstrong et al., 2017, p. 49). A company should target segments in which it can profitably generate the greatest customer value and sustain it over ti...

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MARKETING FINAL EXAM PREP

MARKET TARGETING The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter (Armstrong et al., 2017, p. 49). A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. After evaluating different segments, the company must decide which and how many segments it will target. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve (Armstrong et al., 2017, p. 181). Companies can target very broadly (undifferentiated marketing), very narrowly (micromarketing) or somewhere in between (differentiated or concentrated marketing).

UNDIFFERENTIATED MARKETING AKA Mass Marketing, is a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. This strategy focuses on what is common in the needs of consumers, rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers. (Armstrong et al., 2017, p. 181)

DIFFERENTIATED MARKETING AKA Segmented Marketing, is a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. By offering product and marketing variations to segments, it allows for higher sales and a stronger position within each market segment. Developing a stronger position within several segments creates more total sales than does undifferentiated marketing across all segments. However, it increases costs. (Armstrong et al., 2017, p. 182)

CONCENTRATED MARKETING AKA Niche Marketing, is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. Firms achieve a strong market position because of its greater knowledge of consumer needs in the niches it serves and the special reputation it acquires. It can market more effectively by fine-tuning its products, prices and programs to the needs of carefully defined segments. (Armstrong et al., 2017, p. 182)

MICROMARKETING The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments – includes local marketing and individual marketing. LOCAL MARKETING Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighbourhoods and even specific stores. Eg: large retailers customise their merchandise on a regional basis to meet the needs of local shoppers. (Armstrong et al., 2017, p. 183) INDIVIDUAL MARKETING Tailoring products and marketing programs to the needs and preferences of individual customers – also labelled ‘one-to-one marketing’, ‘customised marketing’ and ‘markets-ofone marketing’. (Armstrong et al., 2017, p. 184)

PRODUCT STRATEGY The combination of goods and services that the company offers to the target market (Armstrong et al., 2017, p. 50).  

What does the customer want from the product /service? What needs does it satisfy? What features does it have to meet these needs? 

Are there any features you've missed out?

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Are you including costly features that the customer won't actually use?

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How and where will the customer use it?

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What does it look like? How will customers experience it?

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What size(s), color(s), and so on, should it be?

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What is it to be called?

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How is it branded?

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How is it differentiated versus your competitors?

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What is the most it can cost to provide and still be sold sufficiently profitably? (See also Price, below.)

PRICE STRATEGY The sum of all the values that customers give up in order to gain the benefits of having or using a product or service (Armstrong et al., 2017, p. 258). 

What is the value of the product or service to the buyer?

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Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?

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What discounts should be offered to trade customers, or to other specific segments of your market? How will your price compare with your competitors?

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PLACE STRATEGY Company activities that make the product available to target customers and end-consumers (Armstrong et al., 2017, p. 50).   

Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalog? How can you access the right distribution channels?

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Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalog companies?

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What do your competitors do, and how can you learn from that and/or differentiate?

PROMOTION STRATEGY Activities that communicate the merits of the product and persuade target customers to buy it (Armstrong et al., 2017, p. 50).  

Where and when can you get your marketing messages across to your target market? Will you reach your audience by advertising online, in the press, on TV, on radio, or on billboards? By using direct marketing mailshots? Through PR? On the internet?

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When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch or subsequent promotions?

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How do your competitors do their promotions? And how does that influence your choice of promotional activity?...