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Chapter 8

Chapter 8.docx

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Management (MGM)
Course Code
Alison Jing Xu

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Chapter 8 Target marketing: identifying market segments, selecting one or more and developing products and marketing programs tailored to each. Target market: a set of buyers sharing common needs or characteristics that the company decides to serve Market segmentation: refers to the process of dividing the total heterogeneous market for a product or service into several segments, each of which tends to be homogeneous in some significant aspects. Why segmentation?  Different consumers want different things  Are able to pay different prices  Respond differently to information  In most markets, a firm cannot appeal to all customers in the same way. And most firms cannot serve all potential customers profitably Market targeting: the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Differentiation: involves actually differentiating the firm’s market offering to create superior customer value Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Above are the four major steps in designing a customer-driven marketing strategy Value proposition: the set of benefits or values it promises to deliver to consumers to satisfy their needs. (BMW promises “the ultimate driving machine” 1. More for more 2. More for the same: comparable quality but at a lower price 3. Same for less: powerful value proposition (Wal-Mart) 4. Less for much less 5. More for less
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