Marketing Opportunities Readings: Flat World Chapter 5 Skill Soft: STGY0212: Developing Target Market Strategy Skill Soft: En_US_42401 _ng: Principles of Marketing – Fundamentals of Marketing Questions: 1 . What is the difference between market segments and target markets? Market segmentation is the when a company wants to identify a specific type of consumer that they will market their product towards out of a borak market group.. Target Market is determined once the company has been able to decides which consumers they are going to market their product to. . What are different ways to demographically segment customers? The different ways to demographically segments customer is to by appealing to their age, life cycle stage, gender, income, and religion, race and nationality. 3. How would you describe psychographics? Is a term used to describe data collected in order to determine what a specific group feels, thinks, acts, and believe. 4. How would you describe product-related (behavioral) segmentation? Marketing method in which consumers are categorized by their buying habits.
This done to identify groups for targeted marketing suck as promotions and incentive programs. 5. Explain each of these criteria for market segments: 1) measurable purchasing ower and size; 2) match with marketing capabilities; 3) able to serve the segment; 4) good profit potential 1. The criteria must have a large consumer market and the power to make the power to have the final say. Market must be sizeable to make a profit. 2. The product must be able to meet the needs of the consumer.
It may be better to market to smaller market segments of the large whole segment. 3. Must be able to appeal the majority consumer since they have the most influences on purchases. 4. The market must be able to make a profit so it must appeal to the correct consumer target in order to be successful. 6. What is market positioning? The effort to influence a consumer perception of a brand or product relative to the perception of a competing brand or product. 7.
Explain each of these approaches to positioning: 1) attributes; 2) price/quality; 3) competitors; 4) application; 5) product user; 6) product class. 1. 2. Price/Quality : depending on the market is how a company will determine the price. If the cost is set to low then the consumer it will perceive it to not be of good Competitors: 4. Application: This is strategy that is used depending on when the consumer will use the product. For example more consumers will drink hot coffee in the colder onths than the hotter months so marketing in the warmer months will be higher. . Product User: This is used to appeal to the specific user/consumer group. If a product is solely for women then that is the target market and a higher effences will be put towards that user group. 6. Product Class: This is putting a product in a class that appeal to certain type of people. For example you would not market a Ferrari to a middle class stay at home mother but you would market it to a business executive that makes 7 fgures. 8. How can a firm use a positioning map to help them develop marketing strategy?
A positioning map will help with the marketing strategy because it gives a company a visual graph on where a product stands and should stands in reference to its competitors. 9. Why do companies position products? It is a company’s way of making consumers think that thir product is unique and advantageous over another option. 10. Explain what a tagline is designed to do. A tagline is designed to sum up the essence of the product or service. This is to help the consumer understand what the product is about. Vocabulary Sheet: Market Positioning http://www. learnmarketing. net/positioning. htm