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Principles of Marketing Management > 4. Segmentation, Targeting & Positioning > Flashcards

4. Segmentation, Targeting & Positioning Flashcards

1
Q

Segmentation

A

Market segmentation is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics

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2
Q

Target

A

Target marketing requires evaluating the relative attractiveness of various segments

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3
Q

positioning

A

creating a unique brand image, or position

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4
Q

Marketing Segmentation Process 3

A
  1. Market segmentation
  2. Market targeting
  3. Market positioning
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5
Q

Market segmentation 2

A
    • Identify Base (demographics) to segment the market
    • Develop profiles for resulting segments
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6
Q

Market targeting 2

A
    • Develop measures for segment attractiveness
    • Select the target segment
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7
Q

Market positioning 2

A
    • Develop positioning for market segments
    • Develop Mkt Mix for each target segment
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8
Q

Most Markets Are Heterogeneous

A

Markets are rarely homogeneous in benefits wanted, purchase rates, and price and promotion elasticities

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9
Q

importance of market segmentation: 4

A
  1. Slowing population growth in many developed countries, and maturing product-markets
  2. Customers with more varied and sophisticated needs and tastes
  3. Trend toward micro-segmentation
  4. Ease of implementing sharply focused marketing programs
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10
Q

Steps in market segmentation 3

A
  1. Identify a homogeneous segment that differs from other segments
  2. Specify criteria that define the segment
  3. Determine segment size and potential
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11
Q

Segmentation decisions are best made based on: 3

A
  1. Who the customers are
  2. Where they are
  3. How they behave relevant to the market in question
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12
Q

Segmenting Demographically 7

A

Demographic attributes:

  1. age
  2. sex
  3. income
  4. occupation
  5. education
  6. race
  7. ethnic origin
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13
Q

Industrial markets are segmented in two stages 2

A
  1. Macro segmentation
  2. Micro-segmentation
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14
Q

Age and life-cycle stage segmentation (demographics)

A

Process of offering different products or using different marketing approaches for different age and life-cycle groups

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15
Q

Segmenting Geographically 3

A
  1. Particularly important in retailing and many services businesses
  2. One way to segment retail markets is by distance or driving time from a particular location
  3. Trade area: The area included within a geographically defined region
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16
Q

Geodemographic Segmentation 3

A
  1. Based on notion that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles and consumption habits
  2. Useful in assessing the size and market potential of a market segment defined by a particular trade area
  3. Geodemographics also attempts to predict consumer behavior
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17
Q

Behavioral Segmentation 6

A
    • Behavioral descriptors
    • Behavioral attributes
    • Divides buyers into groups based on their knowledge, attitudes, uses or responses to a product
    • Product usage and purchase influence
    • Lifestyle
    • Organizational behavioural attributes
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18
Q

Behavioral descriptors

A

based on what target consumers do

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19
Q

Product usage and purchase influence

A

Product-related attributes include :

  • product usage
  • loyalty
  • purchase predisposition
  • purchase influence

Product usage is important because in many markets a small proportion of customers makes a high percentage of purchases In organizational markets, customers are better known, and heavy users are easier to identify

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20
Q

Lifestyle segmentation 3

A

On the basis of consumers:

  1. activities
  2. interests
  3. opinions
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21
Q

Organizational behavioral attributes

A

Purchasing structure: The degree to which the purchasing activity is centralised

The buying situation attribute includes three distinct types of situations:

  • straight rebuy
  • modified rebuy
  • new buying situation
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22
Q

User status 5

A

Segments markets into:

  1. non-users
  2. ex- users
  3. potential users
  4. first- time users
  5. regular users of a product
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23
Q

Loyalty segmentation

A

Dividing buyers into groups according to their degree of loyalty

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24
Q

Psychographics

A

Division of a population into groups that have similar psychological characteristics, personality traits, social class or values and lifestyles (VALS)

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25
Q

8 Vals segments

A
  1. Innovators
  2. Ideals :
    • Thinkers
    • believers
  3. Achievement:
    • Achievers
    • strivers (ambitieu)
  4. Self-expression:
  • Experiencers
  • Maker
  1. Survivors
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26
Q

Innovators

A

Successful, sophisticated, take-charge, with high self-esteem

27
Q

Thinkers

A

Mature, satisfied, comfortable and reflective; value order, knowledge, and responsibility, and motivated by ideals

28
Q

Believers

A

Conservative, conventional with concrete beliefs based on traditional, established codes: family, religion, community, and the nation, motivated by ideals

29
Q

Achievers

A

Motivated by the desire for achievement have goal-oriented lifestyles and a deep commitment to career and family

30
Q

Strivers

A

Trendy and fun loving, motivated by achievement out of concern about the opinions and approval of others

31
Q

Experiencers

A

Motivated by self-expression, young, enthusiastic, and impulsive consumers; quickly become enthusiastic about new possibilities, but are equally quick to cool

32
Q

Makers

A

Motivated by self-expression; express themselves and experience the world by working on it, and have enough skills and energy to carry out their projects successfully

33
Q

Survivors

A

Live narrowly-focused lives with few resources with which to cope, often believe the world is changing too quickly, are comfortable with the familiar, and are primarily concerned with safety and security

34
Q

Segmentation 5

A
  1. Geographic: Country, Region, City,
  2. Demographic: Age, Life-Cycle Stage, Gender, Income, Education
  3. Geodemographic: Micro-targeting
  4. Behavioral: Occasions, Benefits Sought, User Status, Usage Rate, Loyalty Status, Buyer Readiness Stage. Status, Buyer Readiness Stage-
  5. Psychographic: Social class, Life Style, Personality, values
35
Q

Deciding on a segment 4

A
  1. Measurability
  2. Accessibility
  3. Substantiality
  4. Congruity
36
Q

Measurability

A

Can you identify its value, or how significant the segment size is

37
Q

Accessibility

A

Can you reach the segment

38
Q

Substantiality 2

A
    • Can it provide a profit for the organisation
    • How sustainable is this
39
Q

Congruity (conformité) 2

A
    • How closely does it fit with our existing product/service range
    • How cost effective would acquisition be
40
Q

a target market is

A

a group of people or organisations for which an organisation designs, implements and maintains a marketing mix intended to meet the needs of that group..’

41
Q

Targeting 3

A
  1. Single segment
  2. Multi-segment
  3. Niche
42
Q

Single segment

A

One focus, one marketing strategy

43
Q

Multi segment

A

Multiple target groups, multiple marketing strategies

44
Q

Niche 3

A
    • One high value target group, although small in volume
    • consist of a sufficient number of customers seeking somewhat-specialized benefits from a good or service
    • Designed to avoid direct competition with larger firms that pursue bigger segments
45
Q

Differentiated marketing 3

A
    • targets several different market segments and designs separate offers for each.
    • Goal is to achieve higher sales and stronger position.
    • More expensive than undifferentiated marketing.
46
Q

Global Market Segmentation: desadvantages 3

A
  1. Relies on country variables rather than consumer behavior
  2. Assumes homogeneity within the country segment
  3. Ignores the possibility of the existence of homogeneous groups of consumers across country segments
47
Q

Growth-market strategy 3

A
  1. target one or more fast-growth segments
  2. these segments may not be very large
  3. Usually requires strong RD and marketing capabilities, plus the resources to finance rapid growth
48
Q

Mass-market strategy 2

A

A business can pursue a mass-market strategy in two ways:

    • Ignore any segment differences and design a single product-and-marketing program that will appeal to the largest number of consumers
    • Design separate products and marketing programs for the differing segments (differentiated marketing)
49
Q

Reasons why companies expand internationally 3

A
  1. To defend their home position against global competitors
  2. To service customers who are also engaging in global expansion
  3. To earn foreign exchange
50
Q

Effective Targeting Requires… 3

A
  1. Identify and profile distinct groups of buyers who differ in their needs and preferences.
  2. Select one or more market segments to enter.
  3. Establish and communicate the distinctive benefits of the market offering.
51
Q

Product position

A

the place the product occupies in consumers’ minds relative to competing products.

52
Q

Positioning 2

A
  1. In the minds of the consumer: How they perceive the brand
  2. How would this product satisfy their needs
  3. How do you want them to see the product/ brand/ service/ idea
  4. Marketing strategies are designed to position the product in the minds of the consumer
53
Q

One Key to Customer Preference and Competitive Advantage

A

choose what they buy for one of two reasons

  • What they choose is better
  • What they choose is cheaper

Differentiation: Most of the time, differentiation is why people buy

54
Q

Differentiation among competing brands

A

Brand positioning allows the marketer to take advantage of and be responsive to such differences and position particular goods and services to better meet the needs of consumers in one or more of these segments

55
Q

Physical Positioning 2

A
  1. Provides useful information in the early stages of identifying and designing new product offerings
  2. Based primarily on technical rather than on market data Despite this, physical comparisons can be an essential step in undertaking a positioning analysis
56
Q

Limitations of Physical Positioning 3

A
  1. A comparison of the physical dimensions does not provide a complete picture of relative positions
  2. Customers’ attitudes toward a product are often based on social or psychological attributes not amenable to objective comparison
  3. Consequently, perceptual positioning analysis is critically important
57
Q

Perceptual Positioning 3

A
  1. Consumers often know very little about the essential physical attributes of the brands they buy
  2. A consumer can typically evaluate a product better on the basis of benefits it provides
  3. The evaluation of many goods and services is subjective
58
Q

Key Positioning Tools 2

A
  1. Positioning map
  2. Positioning statement
59
Q

Positioning map

A

Positioning maps show consumer pperception of products; their brands versus competing products on important buying dimensions.

60
Q

Positioning statement 7

A
  1. By product characteristics or customer benefits
  2. By price-quality relationship
  3. By use or application
  4. By product user
  5. By product class
  6. By cultural symbol
  7. By competitor
61
Q

Building Brand Equity 3

A
  1. value created by establishing customer preference for one’s brand
  2. reflects how consumers feel, think, and act toward the brand
  3. When companies create differences between their brands and other brands, differences that consumers view as meaningful, brand equity is the result
62
Q

Managing Brand Equity 3

A
  1. Brand reinforcement
  2. Brand revitalization
  3. Emergence of new competitors, changes in consumer tastes, and preferences can affect a brand’s fortunes
63
Q

successful positioning 4

A
  1. Clarity
  2. Consistency
  3. Credibility
  4. Competitiveness

Principles of Marketing Management (9 decks)

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