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Ch6 : Segmentation, targeting, positioning, CRM - Coggle Diagram
Ch6 : Segmentation, targeting, positioning, CRM
Definitions
Market fragmentation : occurs when people's diverse interests and backgrounds divides them into numerous different groups with the distinct needs/wants. (Same good/service cannot appeal to everyone)
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Target marketing strategy : dividies the total market into different segments based on customer characteristics, select 1+ segments and develop products to meet the needs of those specific segments
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Brand personality : good/service helping to create a distinctive image that captures its characters and benefits
Perceptual map : vivid way to construct a picture of where products or brands are located in consumers' minds
CRM (Consumer relationship management) : allows companies to talk to individual customers and adjust elements of their marketing programmes + identify profitable customers to find effective ways to develop long term relationships with them
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Lifetime value of customer : potential profit generated by a single customers' purchase of a firm's products over the customers' lifetime
Customer equity : financial value of customer relationships throughout the lifetime of their relationships
(1)Segmentation : process of dividing the larger market into smaller pieces based on 1+ meaningful shared characteristics
Demographics : gender, age, family structure, geographics, ethnicity, social class, race, income
Age : different age groups have different needs/wants. members of the same generation tend to share the same outlook and priorities (generational marketing)
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Family structure : As families age and move into new life stages, different product categories ascent and descent in importance
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Psychographics : shared activities, interests, opinions
Behaviour : how consumers act towards, feel about or use a product
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(2)Targeting : evaluate the attractiveness of each potential segment to decide which group they will invest resources against to try to turn them into customers
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Developing segment profiles requires understanding members' needs and to look for business opportunities (may include customer demographics, location, lifestyle info and frequency of buying products)
Choosing a targeting strategy depends on how finely tuned the target should be (go after one large segment or focus on one+ smaller segments?) there are 4 types
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2. differentiated targeting strategy : develops 1+ products to each of several consumer groups with different product needs
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4. custom marketing strategy : able to define segments so precisely that they can offer products/services that exactly meet the unique needs of each individual/firm
(3)Positioning : developing a marketing strategy aimed at influencing how a particular market segment perceives a good/service in comparison to competition
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One-to-one marketing
- Identify consumers and get to know them in as much detail as possible
- Differentiate among these consumers (needs and their value of the company)
- Interact with consumers and find ways to improve cost efficiency and the effectiveness of the interaction
- Customise some aspect of the products/services that you offer to each customer