[5] Segmentation, Targeting and Positioning Flashcards
Market Segmentation Def
The identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy
Purpose of Market Segmentation
So that the particular product-related needs of these groups can be met effectively
Behavioural Segmentation [3]
EG for all except last
Benefits sought (car industry: speed/convinence), Purchase Occasion (chocolate: Xmas/snack), Purchase behaviour, Usage (luxury/home brands), Perceptions and beliefs
Psychographic Segmentation [2]
Lifestyle, Personality (brands like Apple = statement)
Profile Segmentation [3]
Demographic (gender/age), Socio-economic (Waitrose/Aldi), Geographic
Market Targeting Def
The choice of which market segment(s) to serve with a tailored marketing mix.
Market Positioning Def
Decisions concerning how the company is going to compete in chosen segment(s)
Strategy Types [4]
Anagram
[FUCD] Undifferentiated Marketing Differentiated Marketing Focused Marketing Customised Marketing
Undifferentiated Marketing Def
‘One Size Fits all’
Differentiated Marketing Def
1 Marketing mix for each segment
Focused Marketing Def
1 Marketing mix, 1 segment served
Customised marketing Def
1 marketing mix for each customer
Benefits of Customization [3 in a chain] (Author)
Better Targeting of customer needs > Better customer value > Higher Sales/Profit (Steenkamp, 2014)
Higher Costs from Customization (x5) [Author]
Higher coordination costs (e.g. communication, reporting, error-related costs)
Lower economies of scale in production
Higher procurement costs (lesser bargaining power with suppliers)
Greater operational costs (e.g. set-p costs)
Extra investments in plants and other resources
[Steenkamp, 2014]
Example of Technology for mass customisation (no detail)
Nike
