Podcast
Questions and Answers
What is a major difference between Dunkin' Donuts and Starbucks ?
What is a major difference between Dunkin' Donuts and Starbucks ?
Dunkin' Donuts targets everyday Joes, while Starbucks aims for a more upscale, professional customer.
What is the name of Dunkin' Donuts' long-running ad slogan?
What is the name of Dunkin' Donuts' long-running ad slogan?
America Runs on Dunkin'.
Which of these is a key difference between the Dunkin' Donuts and Starbucks tribes?
Which of these is a key difference between the Dunkin' Donuts and Starbucks tribes?
- Starbucks customers want to be part of a crowd, Dunkin' Donuts customers want to stand out as individuals. (correct)
- Starbucks customers want to sit on couches, Dunkin' Donuts customers want comfortable booths.
- Starbucks customers prefer a more upscale environment, Dunkin' Donuts customers prefer a more low-brow environment. (correct)
- Starbucks customers want to blend in, Dunkin' Donuts customers want to stand out.
What is the primary way that Dunkin' Donuts is seeking to broaden its appeal to new customer segments?
What is the primary way that Dunkin' Donuts is seeking to broaden its appeal to new customer segments?
What is a key reason that demographic variables are the most popular for dividing customers into segments?
What is a key reason that demographic variables are the most popular for dividing customers into segments?
What did Oscar Mayer do to broaden the appeal of its Lunchables product?
What did Oscar Mayer do to broaden the appeal of its Lunchables product?
What is the nickname given to the very loyal customers of Mountain Dew?
What is the nickname given to the very loyal customers of Mountain Dew?
What is the name of the business information service that classifies U.S. households into one of 71 lifestyle segments?
What is the name of the business information service that classifies U.S. households into one of 71 lifestyle segments?
What is the name of the digital campaign used by Coca-Cola to target teenagers?
What is the name of the digital campaign used by Coca-Cola to target teenagers?
Which of the following is NOT a requirement of effective market segmentation?
Which of the following is NOT a requirement of effective market segmentation?
What is the difference between differentiated and concentrated marketing?
What is the difference between differentiated and concentrated marketing?
Which of these companies is an example of a business that utilizes micromarketing?
Which of these companies is an example of a business that utilizes micromarketing?
What is the name of the program used by Marriott Renaissance Hotels to hyper-localize guest experiences?
What is the name of the program used by Marriott Renaissance Hotels to hyper-localize guest experiences?
What is the term used to describe the marketing strategy of tailoring products and marketing programs to the needs and preferences of individual customers?
What is the term used to describe the marketing strategy of tailoring products and marketing programs to the needs and preferences of individual customers?
Which of these is a factor that should be considered when choosing a market targeting strategy?
Which of these is a factor that should be considered when choosing a market targeting strategy?
What is the biggest concern that marketers have with regard to targeting vulnerable consumers?
What is the biggest concern that marketers have with regard to targeting vulnerable consumers?
What action did McDonald's take to address concerns about its Happy Meals?
What action did McDonald's take to address concerns about its Happy Meals?
What is the term for the way a product is defined by consumers on important attributes?
What is the term for the way a product is defined by consumers on important attributes?
What is the difference between the Cadillac Escalade and the Land Cruiser, as depicted in the positioning map?
What is the difference between the Cadillac Escalade and the Land Cruiser, as depicted in the positioning map?
Which of these is an example of a company that practices 'more for the same' positioning?
Which of these is an example of a company that practices 'more for the same' positioning?
What is the key difference between 'more for more' and 'more for the same' positioning?
What is the key difference between 'more for more' and 'more for the same' positioning?
Which of these is an example of a company that practices 'Less for Much Less' positioning?
Which of these is an example of a company that practices 'Less for Much Less' positioning?
What is the term for a brand's full positioning - the full mix of benefits on which it is positioned?
What is the term for a brand's full positioning - the full mix of benefits on which it is positioned?
What is the primary difference between 'more for less' positioning and 'more for the same' positioning?
What is the primary difference between 'more for less' positioning and 'more for the same' positioning?
What is the primary function of a positioning statement?
What is the primary function of a positioning statement?
What is the key to building a strong, believable position?
What is the key to building a strong, believable position?
Why is it often easier to develop a good positioning strategy than to implement it?
Why is it often easier to develop a good positioning strategy than to implement it?
Once a company has built a strong position, it can remain stagnant and rely on past successes.
Once a company has built a strong position, it can remain stagnant and rely on past successes.
Flashcards
Customer Value-Driven Marketing Strategy
Customer Value-Driven Marketing Strategy
Plan for creating value for customers by understanding their needs and desires, segmenting, targeting, differentiating, and positioning the product.
Market Segmentation
Market Segmentation
Dividing a broad consumer or business market into smaller groups with similar characteristics.
Market Targeting
Market Targeting
Selecting the most promising segments to target with specific products.
Market Differentiation
Market Differentiation
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Market Positioning
Market Positioning
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Dunkin' Donuts
Dunkin' Donuts
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Starbucks
Starbucks
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Consumer Segmentation Bases
Consumer Segmentation Bases
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Business Segmentation Bases
Business Segmentation Bases
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Attractive Market Segments
Attractive Market Segments
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Market-Targeting Strategy
Market-Targeting Strategy
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Study Notes
Customer Value-Driven Marketing Strategy
- Dunkin' Donuts targets a different customer base than Starbucks
- Dunkin' values the average consumer ("average Joe") while Starbucks targets a more affluent, sophisticated consumer
- Dunkin' customers are more comfortable with a low-brow, everyman approach
- Dunkin' Donuts' research showed that its customers are turned off by the high-brow atmosphere of Starbucks, and prefer a more casual setting
- Dunkin' Donuts does not try to target the Starbucks customer
- Dunkin' focuses on simple fare, affordable prices, and a friendly environment
- Dunkin' Donuts ad slogan: "America Runs on Dunkin'"
- Dunkin' is now positioned as an all-day, every-day stop for coffee and baked goods
Market Segmentation
- Market segmentation is dividing a market into groups with different needs and characteristics
- Companies need to reach segments efficiently and effectively with products tailored to their needs
- Consumer market segmentation variables include geographic, demographic, psychographic, and behavioral
- Geographic segmentation: dividing a market into geographical units (nations, regions, etc.)
- Demographic segmentation: dividing by age, life Acycle, gender, income, occupation, etc.
- Psychographic segmentation: dividing by lifestyle or personality characteristics
- Behavioral segmentation: dividing by consumer knowledge, attitudes, uses, or responses to a product
Market Targeting
- Evaluating a market segment's attractiveness depends on size, growth, structural attractiveness, and company objectives/resources
- Companies want segments with right size and growth
- Factors to consider in structural attractiveness: number of competitors, ease of entry, substitute products, buyer power, supplier power
- Companies must consider their objectives and resources when selecting a target segment
Differentiation and Positioning
- Differentiation is providing superior customer value
- Companies gain competitive advantages by differentiating along product, services, channels, people, or image
- Product differentiation: features, performance, style, design
- Services differentiation: speedy or convenient service, high-quality customer service
- Channel differentiation: channel's coverage, expertise, and performance
- People differentiation: hiring and training better people
- Identifying a set of differentiating competitive advantages
- Choosing the right competitive advantages to promote
- Selecting an overall positioning strategy (e.g., more for more, more for the same, less for much less)
- Positioning statement: summarizes company/brand positioning, follows a specific format: "To (target segment and need) our (brand) is (concept) that (point of difference)"
- A product's position is how consumers perceive it in relation to competing products
- Positioning maps: show consumer perceptions of brands on important buying dimensions
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