1. Chapter 6 Version 3e1 Target Markets Discuss alternative strategies for selecting target markets. 7 7

2. Chapter 6 Version 3e2 Target Market A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. 7 7

3. Chapter 6 Version 3e3 Strategies for Selecting Target Markets Concentrated Strategy Concentrated Strategy Undifferentiated Strategy Undifferentiated Strategy Multisegment Strategy Multisegment Strategy 7 7

4. Chapter 6 Version 3e4 Undifferentiated Targeting Strategy Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix. 7 7

5. Chapter 6 Version 3e5 Undifferentiated Targeting Strategy Advantages Advantages :  Potential savings on production and marketing costs Disadvantages Disadvantages:  Unimaginative product offerings  Company more susceptible to competition 7 7

6. Chapter 6 Version 3e6 Concentrated Targeting Strategy A strategy used to select one segment of a market for targeting marketing efforts. 7 7

7. Chapter 6 Version 3e7 Niche One segment of a market. 7 7

8. Chapter 6 Version 3e8 Concentrated Targeting Strategy Advantages Advantages:  Concentration of resources  Meets narrowly defined segment  Small firms can compete  Strong positioning Disadvantages Disadvantages:  Segments too small, or changing  Large competitors may market to niche segment 7 7

9. Chapter 6 Version 3e9 Multisegment Targeting Strategy A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. 7 7

10. Chapter 6 Version 3e10 Advantages Advantages:  Greater financial success  Economies of scale Disadvantages Disadvantages:  High costs  Cannibalization Multisegment Targeting Strategy 7 7

11. Chapter 6 Version 3e11 Costs of Multisegment Targeting $ Product design costs $ Production costs $ Promotion costs $ Inventory costs $ Marketing research costs $ Management costs $ Cannibalization 7 7

12. Chapter 6 Version 3e12 Cannibalization Situation that occurs when sales of a new product cut into sales of a firm’s existing products. 7 7

13. Chapter 6 Version 3e13 Learning Objective Explain how and why firms implement positioning strategies and how product differentiation plays a role. 8 8

14. Chapter 6 Version 3e14 Positioning Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general. 8 8

15. Chapter 6 Version 3e15 Position The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings. 8 8

16. Chapter 6 Version 3e16 Effective Positioning Assess the positions of competing products Determine the dimensions of these positions Choose an effective market position 8 8

17. Chapter 6 Version 3e17 Product Differentiation A positioning strategy that some firms use to distinguish their products from those of competitors. 8 8

18. Chapter 6 Version 3e18 Perceptual Mapping A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds. 8 8

19. Chapter 6 Version 3e19 Perceptual Mapping--Levi ’ s 8 8 High Price Low Price ClassicClassic DesignerDesigner Old product New product Vintage Red Line Silver Tab Slates Dockers Premium Dockers Classics 501 Red Tab Basics Red Tab Dry Goods L2 Red Tab Elesco

20. Chapter 6 Version 3e20 How does perceptual mapping help contain cannibalization?

21. Chapter 6 Version 3e21 Positioning Bases Attribute Price and Quality Use or Application Product User Product Class Competitor Positioning Bases 8 8