Marketing & Social Media
FHNW- BITMr. Flad
FHNW- BITMr. Flad
In contrast to web 1.0, the core principles of web 2.0 are based on… (mark all correct answers)
- Artificial intelligence and analytics
- Client-server networks
- Neural networks and machine learning
- The creation and sharing of content by peers
- The externalization of content
In contrast to web 1.0, the core principles of web 2.0 are based on… (mark all correct answers)
- Artificial intelligence and analytics (false)
- Client-server networks (false)
- Neural networks and machine learning (false)
- The creation and sharing of content by peers
- The externalization of content (false)
Media richness (MR): mark all correct answers
- MR is the amount of information a medium can transmit at a given time
- Media with higher richness reduce uncertainty and ambiguity in communication
- The richest way of communication is face-to-face
- A phone conference is a richer medium than a virtual world
- Wikipedia is a richer medium than YouTube
Media richness (MR): mark all correct answers
- MR is the amount of information a medium can transmit at a given time
- Media with higher richness reduce uncertainty and ambiguity in communication
- The richest way of communication is face-to-face
- A phone conference is a richer medium than a virtual world (false)
- Wikipedia is a richer medium than YouTube (false)
Social presence and self-disclosure /self-presentation Mark the best answers
- Synchronous communication has a higher social presence than asynchronous forms
- Social presence is influenced by the capacity of a medium to provide intimacy and closeness
- Levels of self-disclosure are higher in Wikipedia than in LinkedIn
- A medium with high self-disclosure helps fostering employee engagement.
Social presence and self-disclosure /self-presentation Mark the best ansers
- Synchronous communication has a higher social presence than asynchronous forms
- Social presence is influenced by the capacity of a medium to provide intimacy and closeness
- Levels of self-disclosure are higher in Wikipedia than in LinkedIn (false)
- A medium with high self-disclosure helps to foster employee engagement.
What does the newsfeed algorithm of facebook do?
The newsfeed algorithm goes over the steps of a user and tries to classify it into different categories to provide strong KPIs to make prediction or improve the reach.
Interest in user - how often user interact with the sender/clicks on recent posts
+
Post - how interesting was this to other users/friends? (comments, likes, clicks)
+
Creator - how interesting is content form this creator in general?
+
Type - image? Video? Link? Plain text?
+
Timing- is the content new?
Why is the newsfeed algorithm useful for facebook? What was the initial urge to create this algorithm?
Content on facebook has been increasing. The algorithm filters corporate pages
Why? the value of a FB fan?
2/3 of fans are likely to share good brand experiences and share promotions and discounts with their Facebook friends. 2/3 of fans are likely to share a bad brand experience.
What type of advertising does facebook have? What are the benefits?
- News Feed
- Mimics regular postings
- Large image/video + text
- Right column Ad
- Not as effective as news feed ad
- Not available for mobile advertising
What is the benefit of stating the location in a targeted post on facebook?
You also have another layer of location targeting, allowing to be even more specific:
- Everyone in this location (the default targeting option)
- The last updated location of an actual Facebook user
- People who live in this location
- Location is set by the location on a user’s Facebook profile and confirmed by their IP address.
- People recently in this location
- Tracked by mobile device usage in the geographic area you intend to target.
- People traveling to this location
- Users who had this geographic area as a recent location that’s at least 100 miles away from their home location
What to do and what do avoid when using social media campaigns??
Do:
- Do not delete messages/ comments
- Apologise in an authentic manner
- Take critique seriously
- Engage the most prominent/ vocal critics
- Remain calm , every storm moves on
- React to date
Don't:
- Do not listen (united airlines)
- Do not react (dell)
- Work with unauthentic messages (NYPD)
- Use wrong medium (NYPD)
- E.g. musicians produce youtube song about company fail. 18'500'000 vies withing 4 days stock price decreased by 10 % since the company did not react in time to this video.
- Think about what could go wrong with a campaign before you launch it.
- E.g NYPD launched a campaign and expected happy pictures with the police with "do you have a photo w/ a member of the NYPD? Tweet us & tag it . Result was a flood of pictures with officers mistreating people, and cynical comments. 70000 people tweeted aout police brutality and comments postet at a rate of 10'000 an hour. Bad response. Image was more damaged thatn ever.
What is there to understand about the social media usage and users contes?
- Demographic: : Twitter users young/urban; no "social obedience" ▪
- Medium: no control "Tweets are like roaches". Most content is negative, funny or sarcastic.
- Brand: already negative sentiment => avoid a hashtag campaign.
- Alternatives
- Feel-good user generated photos through a contest on Facebook, Instagram and Pinterest
- Use Twitter:
- Upcoming events with positive/ neutral PR surrounding; for monitoring not for campaigning
- Nevertheless: More people are following @NYPDNews
How is social media used in global corporate?
Two-thirds of companies said they are either currently using social media channels or have social media plans in the works
But:
- Focus: social media as a one-way promotional channel,
- Lack of use media to analyse conversations and turn it into insights
- 75% did not know where their most valuable customers task about them
- 31% do not measure effectiveness of social media
- 7% of participating companies integrate social media into their marketing
What are social media approaches and principles of engagement?
Social media: approaches and principles of successful engagement (synthesis)
- Take social media seriously, feel the “pulse” (Dell)
- Know your audience and your media (NYPD)
- Align social media with corporate “reality” / with reality of products and services
- Interact with other influential individuals/ brands to maximise your reach
- Consider the timing of your engagement
- Dialogue and not content is king
- Let others talk for you (customers, employees, partners etc):
- Don`t sell – give (entertainment, information, education,…)
- 80/20 rule of thumb (non-promotional vs. promotional content)
Successful approaches
- Constantly monitor the social media environment. In case of "turbulences" react immediately, honestly, and sensitively
When do you tweet?
Most brands tweet during the work week. Peak is on Thursdays and in general between 9AM to 6PM. But peak times vary with industry, location, and audience demographics.
The most retweets happen on Sundays. And in general more at night (EST)
What are non-promotional dialogues?
Non-promotional dialogues:
- Get personal (occasionally) Dell
- Incorporate users or employees as your brand messengers
- Link social media messages to real world / events (Oreo, Obermutten)
- Transmit corporate and consumer values (Dove, Apple, Under Armour)
- Do the unexpected (outrageous /funny / provocative (Abarth, Blendtec, Burger King)
How can you transmit corporate and consumer values platforms without apparent self-serving purposes?
- Unilever’s Dove Campaign for Real Beauty’’
- Bring together like-minded people who wish to enhance girls’ and women’s self-esteem by helping to establish realistic standards of beauty
- Mix of media/activities: advertisements, video, workshops, sleepover events and the publication of a book, the production of a play and a digital platform, viral videos.
Automotive – practice case
Assignment: Your task is to develop an outline for a marketing campaign in which you try to engage the target populations as much as possible. You can use social media, viral marketing approaches, on site events/activities etc. In planning the campaign, you develop a first outline which describes the key elements of the campaign including channels, events etc.
Case: Company background You work as a marketer in a large and globally operating automotive manufacturer with European roots. The company has a global market share with a focus on US, Europe and Asian markets. You and your team are in charge of the US market. Your particular task is to develop a sketch for a campaign for a new electric car to be launched in the US market. The is priced between 25’000-35’000 USD. The image that you and your team want to bestow to the new care is a small, stylish/hip, and environmentally friendly city car for urban populations. One of the main customer segments for this market are millennials, who are relatively young and culturally diverse.
Contact influencers personality to promote the car & start a social media (twitter, Instagram(fb)) marketing campaign
Maybe guarantee something to be done for the environment when you buy the car. Like planting a tree
Influencer. Ping them, make a proposal, define expectations, name a price and make a contract. They need to interact with the product.
What do you need to Track & monitor in social media?
- Awareness
- Brand awareness e.g. followers
- Engagement
- Brand engagement (e.g. twitter analytics - comments)
- Website traffic from social media (google analytics)
- Word of mouth
What do swiss companies monitor on social media?
- Likes, follower 71%
- Visitors 68%
- Number of social media reports 59%
- Dialogue 16%
- Requests, rutnover 17%
- Image 14%
- Topic leadership 13%
- Satisfaction, recommendations 11%
How do you implement a systematic approach to social media?
Digital acceleration team (DAT)
3 core disciplines:
- Listening
- Engaging
- Inspiring & Transforming
Listening and engaging: focus on trouble spotting:
- Taping on online conversation and interactions as and when they happen.
- Trouble spotting: high number of comments,”
- Marking negative issues: «If there is a negative issue emerging, it turns red.”
- Alters to trigger engagement, i.e., a real-time online response from a team member.“
DAT team: combining social media with corporate training
- Digital leadership training
- 12 members per class train for 8 months
- Three different areas:
- Community management for top global brands.
- Small internal projects, where we would make our capacity for business units and functions, e.g. mobile solutions in emerging markets
- Intense training and through leadership
What are key questions and key content of Social Media?
- Foundations /characteristics of social media and social networks, nodes etc.)
- What makes networks and social media powerful?
- Networks in organisations
- Social media and underlying concepts/classifications)
- Social media goal setting/ approaches / building blocks
- Audience, channels and successful customer engagement principles
- Frequent mistakes - and approaches and principles of successful engagement
- Social media tracking / monitoring
How would you define marketing?
"Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers."
"Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return"
"Marketing is the process of planning and execution the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."
What are the goals of marketing?
"marketing is to find out what people like and do more of it. Marketing is to find out what people don't like and do less of it."
Why do we need marketing?
The Consumer needs something and the suppliers provides goods and services- so marketing gives the information of the supplier to the consumer and the consumer gives money to the supplier.
Old times the consumers needs were only provided by one supplier. It was a simple decision making. The supplier market decided (shortage society) Today it is different, consumer demand marked (affluent society) consumers have multiple suppliers to choose from and make a complex decision about goods and services and where to buy it.
What is the principal of reward? Which rewards exist for the market partners?
Consumer: convenience fllfilled, happy, phychological relieve, accessability
Supplier: Revenue provitability, new customer, loyalty, dominance in area
What is the principal of capacity? Which resources do the market partners need?
Consumers: space, capital, human resource
Supplier: human resource, capital, suppliers, good decision making, smart invesments
What was the marketing evolution from the 1950ies to 2000s?
1950 Production orientation (sellers market) produce as much as you can
1960 Sales orientation (increasing competition, saturation) sell as much as you can
1970 Marketing orientation (buyers market) produce what you can sell
1980 Competitive orientation. How do we differentiate ourselves from competition?
1990 Environmental orientation , how do we recognize relevant trends and react effectively?
2000 Network orientation, how do we interact in networks and with customers and other market partners?
What are factors impacting marketing?
- Customer collaboarion and influence
- Growth of channel and device choices
- Social media
- Roi accountability
- Decreasing brand loyalty
- Data explosion
- Shifting consumer demographics
- Regulatory considerations
- Growth market oppotunities
- Financial constraints
- Corporate transparency
- Privacy considerations
- Global outsourcing
Sorte the factors that impact marketing by impact.
- Privacy considerations
- Shifting consumer demographics
- Social media
- Roi accountability
- Corporate transparency
- Global outsourcing
- Customer collaboarion and influence
- Regulatory considerations
- Data explosion
- Growth of channel and device choices
- Decreasing brand loyalty
- Growth market oppotunities
- Financial constraints
- 67% Customer collaboarion and influence
- 61% Growth of channel and device choices
- 57% Social media
- 45% ROI accountability
- 42% Decreasing brand loyalty
- 39% Data explosion
- 37% Shifting consumer demographics
- 33% Regulatory considerations
- 31% Growth market oppotunities
- 30% Financial constraints
- 21% Corporate transparency
- 10% Privacy considerations
- 9% Global outsourcing
Identifiy unerlying needs of tesla in the upside down maslow pyramid.
Self actualization, esteem, social, safety, transportation
What is market oriented management
It takes customer orientation plus competitor orientation and equals the building up, extensions and conservation of competitive advantages of a corporation. Marketing is market-oriented and market-driven business management and decision making.
Draft a marketplace and customer needs and the role of marketing
What is marketing as a dual management concept ?
Compare the old view of organizations to the new way of organisations
What is a seamless hospitality organization drawing?
What is maslow's hierarchy of needs?
Define: Need, Want and Demand
Need- a state of feld deprivation of some basic satisfaction e.g. food, clothing ,safety, belonging. Needs Are states of feld deprivation
want- desire for specific satisfiers of these needs. E.g.g burger, mercedes benz, and LV Bag etc. different for different socio-cultural structures. Wants Are the form human needs take as they are shaped by culture and individual personality.
demand- wants backed by ability and willingness to buy. E.g. * of people who want a Merc and can buy it. Demands Are human wants that are backed by buying power
What are Market offerings and marketing myopia?
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Marketing myopia is focusing only on existing wants and losing sight of unerlying consumer needs.
What does marketing actions try to create?
Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing actions try to create, maintain, and grow desirable exchange relationships.
What is a market?
A market is set of actual and potential buyers. Consumers market when they: - search for products.
- interact with companies to obtain information
Make purchases
What questions do you need to ask when designing a customer value -driven marketing strategy?
Marketing management is the art and science of choosing target markets and builing profitable realtionships with them.
- what customers will we serve (target market)?
How can we best serve these customers (value proposition)?
A brand's value proposition is the set of benefits or values it promises to deliver to customers to satisfy theri needs.
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Flashcards
Define different observation methods.
- For structured observation, the researcher specifies in detail what is to be observed and how the measurements are to be recorded, e.g., an auditor performing inventory analysis in a store.
- In unstructured observation, the observer monitors all aspects of the phenomenon that seem relevant to the problem at hand, e.g., observing children playing with new toys.
- In disguised observation, the respondents are unaware that they are being observed. Disguise may be accomplished by using one-way mirrors, hidden cameras, or inconspicuous mechanical devices. Observers may be disguised as shoppers or sales clerks.
- In undisguised observation, the respondents are aware that they are under observation.
- Natural observation involves observing behavior as it takes places in the environment. For example, one could observe the behavior of respondents eating fast food in Burger King.
- In contrived observation, respondents' behavior is observed in an artificial environment, such as a test kitchen.
Classify observation methods
Observation Methods
- Personal observation
- Mechanical observation
- Audit
- Content analysis
- Trace analysis
Describe observation methods personal observation, mechanical observation
- Personal observation
- A researcher observes actual behavior as it occurs.
- The observer does not attempt to manipulate the phenomenon being observed but merely records what takes place.
- For example, a researcher might record traffic counts and observe traffic flows in a department store.
- Mechanical observation
- Do not require respondents' direct participation.
- Turnstiles that record the number of people entering or leaving a building.
- On-site cameras (still, motion picture, or video)
- Optical scanners in supermarkets
- Do require respondent involvement.
- Eye-tracking monitors
- Pupilometers
- Voice pitch analyzers
- Do not require respondents' direct participation.
Describe observation methods audit, content analysis and trace analysis
- Audit
- The researcher collects data by examining physical records or performing inventory analysis.
- Data are collected personally by the researcher.
- The data are based upon counts, usually of physical objects.
- Retail and wholesale audits conducted by marketing research suppliers
- Content analysis
- The objective, systematic, and quantitative description of the manifest content of a communication.
- The unit of analysis may be words, characters (individuals or objects), themes (propositions), space and time measures (length or duration of the message), or topics (subject of the message).
- Analytical categories for classifying the units are developed and the communication is broken down according to prescribed rules.
- Trace analysis
- Data collection is based on physical traces, or evidence, of past behavior.
- The number of different fingerprints on a page was used to gauge the readership of various advertisements in a magazine.
- The position of the radio dials in cars brought in for service was used to estimate share of listening audience of various radio stations.
- The age and condition of cars in a parking lot were used to assess the affluence of customers.
- Internet visitors leave traces which can be analyzed to examine browsing and usage behavior by using cookies.
What are the advantages of observation methods?
- They permit measurement of actual behavior rather than reports of intended or preferred behavior.
- There is no reporting bias, and potential bias caused by the interviewer and the interviewing process is eliminated or reduced.
- Certain types of data can be collected only by observation.
- If the observed phenomenon occurs frequently or is of short duration, observational methods may be cheaper and faster than survey methods
What are the disadvantages of observation methods?
- The reasons for the observed behavior may not be determined since little is known about the underlying motives, beliefs, attitudes, and preferences.
- Selective perception (bias in the researcher's perception) can bias the data.
- Observational data are often time-consuming and expensive, and it is difficult to observe certain forms of behavior.
- In some cases, the use of observational methods may be unethical, as in observing people without their knowledge or consent.
- It is best to view observation as a complement to survey methods, rather than as being in competition with them.
What is a Experimental Design?
An experimental design is a set of procedures specifying:
- The test units and how these units are to be divided into homogeneous subsamples,
- What independent variables or treatments are to be manipulated
- What dependent variables are to be measured and
- How the extreaneous variables are to be controlled
There are labatory tests = test done in artificial environment for e.g. packaging, taste
Or the experiment is done in the field = done in a natural environment like a storetest, Posttest of advertising impact recognition recall
Are there subcategories to Advertising? When yes what?
Advertising
- Pretest
- Posttest
- Recognition
- Recall
- Unaided Recall
- Aided recall
What are the steps to go to implementing research data?
- Data collection
- Researchers should guard against various problems.
- Techniques and technologies
- Data quality
- Timelines
- Researchers should guard against various problems.
- Processing the data
- Check for accuracy
- Code for analysis
- Analysing the data
- Tabulate results
- Compute statistical measures
What are responsibilities of managers, researchers and market researchers regarding the findings of a research?
Responsibilities of the market researcher:
- Interpret the findings
- Draw conclusions
- Report findings to management
Responsibilities of managers and researchers:
- Work together closely when interpreting research results
- Share responsibility for the research process and resulting decisions
Sketch how the goal hierarch in markeing is funcioning
What is the hierarchy of corporate goals and objectives system?
- Vision- Mission
- Corporate Goals: sales, profit, market share
- Goalds on functional business areas: personnel, production, marketing, sales, distribution
- Precise marketing goals: market share, sales, customer satisfaction, awareness, image
What are marketing and corporate goals and what is important to keep in mind when defining them?
Corporate Goals
- Purchasing goals
- Production goals
- Financial goals
- Marketing goals
- Prod. Goals
- Contracting goals
- Distribution goals
- Communications goals
- Objectives need to be measurable
- Long-, mid- and short-term objectives to be differentiated
- Qualitative and quantitative objectives to be specified
- Objectives to be horizontally and vertically harmonized
What are the marketing objectives?
Operationalization and measureable with 4 "W" plus 2 "How":
- What kind of objective? (specific)
- How much or many? (amount)
- By when? (timing)
- Which product?(object)
- Whom and where? (subject: target group and place)
- How? By doing what? Whith which partner? And maybe why?
Additional cross check according to SMART (specific, measurable, achievable, relevant, time oriented) e.g. "We do increase the market shre to 20% for the product X in Seitzerland withing the target group by the end of this year by increasing the advertising spending.
Make a product- versus Needs-based definition comparison of the companies FHNW, Novartis, Tamedia, Swisscom, BMW
What is the magic triangle of the business model definition? Sketch it
What is SMART?
SMART (specific, measurable, achievable, relevant, time oriented)
Define Consumer Buyer Behavior and Consumer markets
Consumer buyer behavior: buying behavior of final consumers
Consumer market: all the individuals and households that buy or acqurie goods and services for personal consumption.
Define the Model of Buyer Behavior (S-O-R)
What are factors which influence consumer behavior?
Cultural:
- Culture, subculture, social class
Social:
- Groups and social networks, family, roles and status
Personal:
- Age and lifecycle stage, occupation, economic situation, lifestyle, personality and self-concept
Psychological:
- Motivation
- Perception
- Learning
- Beliefs and attitudes
Buyer
What is Maslow's hierarchy of needs?
According to maslow, human needs are arranged in a hierarchy. Starving people will take little interest in the latest happenings in the art world. ( from top down)
- Self actualization need: self-development and realization
- Esteem needs: self-esteem, recognition, status
- Social needs: sensce of belonging, love
- Safety needs: security, protection
- Physiological need: hunger, thirst
Define a buyers decision process
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Postpurchase behavior
What are the steps from market segmentation to differentiation?
- What business are we in?
- Demand and supply define the market
- Select customers to serve
- Market Segmentation: Divide the total market into smaller segments
- Choice of target market: select the segment or segments to enter
- Decide on a value proposition
- Positioning: position the market offering in the minds of target customers
- Differentiation: differentiate the market offering to create superior customer value
What are the 4 dimensions of the relevant market?
- Object demarcation
- Is the snowboard competing with ski and other snow gear?
- Subject demarcation
- Which age has our target group?
- Territorial demarcation
- Local, regional, national, global?
- Seasonal demarcation
- How long is the snowboard season? When are snowboards mostly bought?
Define Market Segmentation
Segmentation: Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Market segments are in each other homogenous, but in comparison to other buyer or consumer segments heterogeneous.
Give some examples of the major segmentation variables for consumer markets
Segmentation Variable
- Geographic
- Nations, regions, states, countries, cities, neighborhoods, population density (urban,suburban, rural), climate
- Demographic
- Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation
- Psychographic
- Social class, lifestyle, personality
- Behavioral
- Occasions, divided according to the occasion when the buyer gets the idea to buy, make their purchase and use the purchased item
- benefits,
- user status: nonuser, ex-users, potential users, first-time users, regular users.
- usage rate: light, medium, heavy product users
- loyalty status
Why do we create multiple segmentation bases for marketing?
Segmentation bases help companies to
- Identify smaller, better-defined target groups
- Identify and understand key customer segments
- Reach customers more efficiently by tailoring market offerings and messages to customers’ specific needs
Segmentation systems help marketers segment people and locations into marketable groups of like-minded consumers.
In what hierarchy are the market segmentation of consumer goods looked at?
What is the hierarchy of market segmentation of investment goods
What are the requirements for effective market segmentation?
Market segments must be:
- Heterogenous
- Measurable
- Substantial
- Accessible
- Actionable
What is the optimal degree of segmentation?
Define Market targeting (targeting) and Target market
Market targeting (targeting): evaluating each market segment's attractiveness and selecting one or more segments to enter.
Target market: a set of buyers sharing common needs or characteristics and that the company decides to serve.
What are the criteria to be considered in evaluating different market segments?
- Future growth potential
- Strategic significance
- Competitors' marketing activities
- Size and growth characteristics (i.e. purchasing power, market volume)
- Company's resources and capabilities
- Structural attractiveness
- Costs of serving the segment
What is Differentiated Marketing?
- A firm produces numerous products and promotes them with a differentiated marketing mix designed to satisfy smaller segments
- Specific products for clearly defined segments
- Competitive advantage due to unique products that meet the needs of target segments
- Profit opportunities due to higher margins of specific products.
What is undifferentiated marketing?
- A firm produces only one product or product line and promotes it to all customers with a single marketing mix
- One product for a mass market
- Competitive advantage due to price advantage, superior quality or strong promotions
- Profit opportunities due do economies of scale in production and marketing
What are market-targeting strategies?
You start with targeting broadly
- Undifferentiated (mass) marketing
- Go after the whole market
- One size fits all
- E.g. gasoline, electricity, ford model T
- Differentiated (segmented) marketing
- Target several segments
- Design separate offers for each
- E.g. cars, tourism, retail, procter & gamble
- Concentrated (niche) marketing
- Go after a large market share of one or very few segments or niches
- E.g. specialty shop (asian food), läderach
- Micromarketing (local or individual marketing)
- Customized, tailor-made
- To the needs and wants of specific individuals or local customer segments
- Mass customization
- E.g. my music, my MMs
And you end with targeting narrowly
How are customer selected to serve in form of marketing strategy?
A customer-driven marketing strategy consists of four steps: Market segmentation, choice of target market, positioning, and differentiation.
Market segmentation is the act of dividing a market into distinct segments of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.
Market targeting evaluates each market segment’s attractiveness and selects one or more segments to serve.
For consumer marketing the major segmentation variables include demographic and geographic criteria, economic and social status, buying behavior, product usage, and personality and lifestyle.
Business markets can be segmented by business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics.
The effectiveness of the segmentation analysis depends on finding segments that are heterogeneous, measurable, substantial, accessible, and actionable.
After evaluating the best market segments to target, a company chooses one of four market-targeting strategies – ranging from very broad (undifferentiated or mass marketing) to more or less narrow targeting (differentiated marketing, concentrated or niche marketing, and micromarketing).
What steps do you need to consider when going from market segmentation to differentiation?
Explain what Positioning means
Positioning
Product position: the way a product is defined by consumers on important attributes the place the product occupies in consumers' mind relative to competing products.
Positioning statement: a statement that summarizes company or brand positioning. It captures the target segments and their needs, the positioning concept, and the specific points of difference.
What is needed to maintain the existing market position?
Maintaining the existing market position: the company continues to focus on the same target segment(s). The current positioning strategy is maintained.
Necessary conditions:
- The current product position provides the company now and in the foreseeable future with a comparative competitive advantage in the eyes of the target group(s)
- The existing target group is economically attractive and sustainable
Necessary Activities:
- Invest to further strengthen the existing market position.
- Adaptations of the marketing mix on an instrumental level. E.g. gillette
