6 - segmentation, targeting, positioning and marketing in practice Flashcards
to implement the marketing concept and satisfy customer needs what is needed?
product and service offerings need to be tailored to meet the diverse requirements of different customer groups
this is because products rarely satisfy all customers in a market, not all customer want to pay for the same things
what is marketing segmentation?
the identification of individuals or organisations with similar characteristics that have significant implication for the determination of marketing strategies
what does marketing segmentation involve?
dividing a diverse market into a number of smaller, more similar sub markets
objective is to identify groups of customers with similar requirements so that they can be served effectively while being of a sufficient size for the product or service to be supplied efficiently
what does marketing segmentation provide?
a commercially viable method of serving customers and is at the heart of the marketing strategy
what is it not possible to do with the marketing mix?
create one that satfiesn every ned
expect the idea of online personalisation
in order to do marketing segmentation successfully what needs to happen?
all relevant people should be involved, all staff should be aware of the reasons and importance as they will be more omitted to the results leading to better implementation in the later stages
what are the advantages of market segmentation?
- target market selection
- tailored marketing mix
- differentiation
what is and why is target market selection an adavatnge for MS?
target market is a chosen segment of the make that a company has decided to serve
customers
customers have similar characteristics
single marketing stargtey can be developed to match those requirements
creative approach may result in identification of new segments in which have not been served adequately and create new target market
what is an example of target market selection?
offer different severs platforms in terms of functional needs
Google Wallet
Google Docs
GMail
what is and why is tailored marketing mix an advantage of ms?
grouping of customers with similar characteristics that are important when designing marketingg srategies
allows marketers to understand the in depth requirements of a segment and tailor a marketing mix package that meets its needs
step in the implementation of marketing concept: segmentation promotes notion of customer satisfaction by viewing markets as diverse seats of needs that suppliers must understand and meet
what is the marketing mix?
factors tat can be controlled by company o influence consumers to buy product
place price product and promotion
what is differentiation and why is it an dvatage of MS?
MS allows development of marketing strategies by breaking down market into sub segments
company may differentiate its offerings between segments and within each segment it can differentiate its offerings from competition
allows maximise profits
what is an example of differentiation?
Apple
2007 - ne set of applications and functionality, attract customers
samsung and apple i same segment but find ways to differentiate
what is an opportunity of MS?
MS is useful when attempting to spot opportunities and threats
markets rarely static as customers become more affluent and seek new opportunities, new markets emerge
company can spot these segments first and meet needs before competition gain more sales and growth
zara fast fashion, supply new lines weeks
gap tried this and
what is the process of market segmentation and target marketing?
the selection of target markets is a three step process
1) understand requirements and characteristics of the individuals and organisations that compromise the market (Research)
2) divide market according to these requirements and characteristics, no rrukles on how the market should be segmented
(TomTom reinvented navigation, those who navigation whilst driving)
3) choose market segment to target, a marketing mix can be developed on a dip understanding of target market customer needs and values, aim is to deign mix that is distinct from competitors offerings
why is one segment chosen?
seen as more attractive than others
what are types of consumer segmentation criteria?
behavioural psychographic profile demographic - age gender etc geogrpahic
what is behavioural segmentation?
behavioural variables may be considered the ultimate bases for segmentation
key behavioural bases for segmenting consumer markets: benefits sought, purchase occasion, purchase behaviour, usage and perceptions, attitudes, beliefs and values
what is meant by benefits sought?
BS
applied to people in the market who seek benefits from a product, such as a fruit drinks k market can be split into vitamins and energy
BS provides understanding of why people buy in a market and can aid identification opportunities, some markets segmented on basis of force sensitivity some may benefit from low prices or some the high quality that comes with higher prices
fundamental method of of segmentation as objective of marketing to provide customers with benefits they value
knowing benefits is a basic undertsnaidng of markets
what is purchase occasion?
BS
customers can be distinguished by occasion in which they buy product
price sensitive is likely to play a part is when something is bought e.g. in an d emergency (lower)
different occasions can have implications on the marketing mix and targeting decisions
gift market is concentrated at christsment
what is purchase behaviour?
BS
may be affected by brand loyalty
if one person buys one brand at a time or may by three of some compared to i there is no brand loyalty
loyalty cards such as clubcard
what is involved in usage?
BS
customers can be segmented into heavy light and non users
heavy users receive most marketing attention assumption it will create brand loyalty
technology increased access to niche markets increasing users, Ford trying to fit health shit into cars for olders
what is involved with perceptions, attitudes, beliefs and values?
BS
all linked to behaviour
grouped into people who view profits the same way (perceptual segmentation) and have similar beliefs
provides an undertaking of how customer view the market place
car manfucaterers target belief segmentation, Toyota target young market showing cars are fun e.g touch screen in Yaris
what is Psychographic Segmentation?
involves grouping people according to their lifestyle and perosnillty characteristics
what is involved with lifestyle?
PyS
this form of segmentation attempts to group according to the way of living, as reflected in activities, interest and opinions
question i to what extent general lifestyle patterns of living are predictive of purchasing behaviour in specific markets
popular among advertising agencies such as Hugo Boss target the aspirational
sky have tried to target lifestyle through sky sports
what is involved in personality
PyS
the usefulness of personality as segmentation is likely to depend on the product category
most of the time it is abut when brand choice is a reflection of self expression, for example mercedes is assertiveness the bet or nothing whereas BMW is more desirable
ultimate driving machine
what is profile segmentation?
variable allow customers to be classified in such a way that means that they can be reached by the communications media (advertising and internet communications)
even if other two segmentation has been successful still need to analyse results interns of profile variable such as age and socio economic groups to communicate with them
what are demographic profiles?
PS
AGE
GENDER - social norms
LIFESTYLE - disposable income,, family, consumption patterns
what aresocio economic variable?
PS
includes class, terminal education age and income, predictor of buying behaviour (social class)
social class can be easy to measure
what are geographic variables?
PS
final set of variables is based upon geographic differences
useful where there a locational differences, such as local food and preferences
geodemographic, hybrid, link both such as where most young people, live or where high class people live
what are the requirements for effectives segmentation?
- measurable = size, buying power and profiles, can you measure the segment if no then you cant target it
- accessible = can you reach and serve through marketing communications
- substantial = large and profitable
- differentiable = distinguished and respond difernetialy to marketing efforts, how can you make sue that adverts only target one segment and not others
- actionable = attract and serve
must assess these once chosen the segment
what is market targeting?
once you have segmented the market yo have to choose which ones you want to target and ether you need different strategies
what are the external market factors involved with market targeting?
= segment attractiveness - size and growth - profitability - power of buyers and suppliers - price sensitivity = competitive factors - nature of competition - new entrants - differentiation = enviro factors - political forces - social trends
what are the internal factors involved with market targeting?
business strengths and capacities
- own objectives and resources
- enviro fit
- assets
- core competence
what are the target marketing stargies?
undifferentiated marketing
differentiated marketing
concentrated marketing
micromarketing
what is undifferentiated market targeting?
entire market is target market
assumes all customers have similar needs
however may lose out to focused competitior
develop a single marketing mix and only need one product
what is differentiated marketing?
target several market segments separately
use different marketing mix for each segment
expensive yet effective
cars - target different segments
- sky with movies and sports
what is concentrated marketing?
single marketing mix for one single segment
appropriate for small firms with limited resources
focus on small number of customers
what is micro marketing?
tailoring products and marketing programmes to the needs and wants of specific individual and local customer segments
local (tesco, different product in student city than suburban area)
individualised (mass customisation and 121 marketing such as nike id)
what is market positioning?
complex set of impressions, perceptions and feelings about a product
why do firms position a product?
- simplify the buying process
- design the image to match target customer
wat are the position strategies?
- product attributes (e.g technical - no articial colour)
- benefits offered (whitening toothpaste)
- usage occasions (after eights)
- users (johnsons died at babies)
- activities (sports and lifestyles)
- personalities (if the product was a person)
- organ (place of manufacture)
- competition
use a combination of straggles
what are positions maps?
show consumer preferences of their brands vs competing products on important dimensions
size of circle is market share and overlap shows competitiors
if your position doesn’t work you can reposition
change positon on axis
lucazade was a medicine but repositioned in the sport sector
