Kapitel 2

When consumers are presented with too many options, they can experience choice overload, which often results in them becoming overwhelmed and deciding not to make a choice at all.

Due to their limited attention resources, consumers tend to select information in the environment that is more relevant to their current goal. They prioritize information based on its perceived relevance and importance to their immediate needs.

Consumers are more likely to focus on information that is immediately accessible and relevant at the moment. Their choices are influenced by the information that is most salient and pertinent to their current goals.

Consumers often make better choices when they base their decisions on their immediate emotional reactions. An immediate emotional response can serve as an intuitive guide, helping consumers to quickly evaluate options and make decisions that align with their preferences and feelings.

When consumers have limited attention resources, they might be influenced by the most accessible information because it's readily available and easy to process. This can happen even if there's other, more relevant information present but not as immediately noticeable or compelling.

Segmentation is essential because the market is not homogeneous. Companies recognize that not all customers are the same, and it can be difficult or too costly to satisfy all customers, especially when the company has limited resources. Hence, by dividing the market into relatively homogeneous segments, companies can more efficiently allocate their resources and cater to specific consumer needs.

The primary reasons companies segment the market include recognizing that not all customers are the same, the market's lack of homogeneity, and the realization that competing companies may be better suited for certain segments. Furthermore, the company may find it too costly or challenging to satisfy every customer due to limited resources. Therefore, companies focus on customers that offer the highest return on marketing investment.

The three criteria for successful segmentation are:

1. Segments should be distinctive, meaning they should respond differently to the marketing mix.

2. Segments should be operational, meaning they can be identified and reached.

3. Segments should be substantial, meaning they are large or profitable enough to support marketing programs tailored to their needs.

Different companies have unique strengths, resources, capabilities, and brand positioning. As a result, a company might have products, services, or marketing strategies that align better with the needs, preferences, or values of a particular market segment. Recognizing this, companies often choose to focus on segments where they have a competitive advantage or can deliver superior value.

By segmenting the market, companies can target specific groups of customers more effectively and efficiently. This allows companies to tailor their marketing mix to the unique needs and preferences of each segment, leading to better engagement and conversion rates. By focusing resources on the most profitable segments, companies can achieve a higher return on marketing investment, as they're catering to customers more likely to respond positively to their offerings.

It's essential for segments to be operational because this means they can be identified and reached by the company. If a segment is not operational, the company may not be able to effectively target or communicate with those customers, making the segmentation effort fruitless.

Personal characteristics in market segmentation refer to demographic, geographic, and lifestyle aspects of consumers.

"Benefits sought" pertains to the specific aspects or features of a product that customers are primarily looking for, such as its quality and price levels.

In terms of market segmentation, "behavior" refers to a customer's actions in the marketplace. This can include their purchasing pattern, brand loyalty, and the actual profitability they bring to a company.

A1: The primary goal of targeting in marketing is to address the right people who are interested in buying the product.

Coca-Cola uses a mass marketing strategy, targeting an undifferentiated segment.

A single target market approach addresses a concentrated segment with broader appeal, whereas a niche strategy focuses on a narrower, more specific portion of that segment, catering to unique needs and preferences.

The multiple target market approach is the most commonly used strategy by companies when targeting differentiated segments.

The mere-exposure effect suggests that people tend to develop a preference for things they are exposed to frequently.

It's important because of the mere-exposure effect; by repeatedly exposing consumers to a company's positioning, it increases the likelihood that they will develop a preference or affinity for the brand or product.

The primary goal of positioning is to occupy a specific position in consumers’ minds in relation to other products or brands.

A good Positioning Statement should contain:

1. Target

2. Frame of reference

3. Point of difference

4. Reason to believe.

The two primary tools for positioning are perceptual maps (a quantitative technique) and ZMET (a qualitative technique).

The perceptual maps technique involves selecting two significant attributes and plotting the competitors on a graph based on those attributes.

For perceptual maps, (quantitative technique) marketers should use factor analysis to reduce the number of attributes they need to plot, and regression analysis to examine which factors or attributes are most important to the target consumers.

ZMET (qualiative technique) (Zaltman Metaphor Elicitation Technique) involves asking customers to collect images that represent their perceptions of the brand. Through this, managers obtain a visual representation or illustration of how the consumer views the brand.