7 Market Segmentation and Positioning

Question 1

What is market segmentation?

Answer 1

The identification of individuals or organisations with similar characteristics that have significant implications for the determination or marketing strategy.

Question 2

What are advantages of market segmentation?

Answer 2

Target market selection

Tailored marketing mix

Opportunities and threats

Differentiation

Question 3

What are the 4 different bases for segmenting consumer markets?

Answer 3

Geographic - Nations, states, …

Demographic - Age, gender, …

Psychographic - Lifestyle, personality, …

Behavioural - Occassions, benefits, loyalty, …

Question 4

Look at diagram of evaluating market attractiveness in your gallery

Question 5

What are different factors used to assess the companys capability to compete?

Answer 5

Usable marketing assets
Cost advantages
Technological edge
Managerial capabilities, commitment

Question 6

What are the 4 different target marketing strategies and describe them further

Answer 6

1. Undifferentiated Marketing: One Marketing Mix for the whole market
2. Differentiated Marketing: For each segment an own marketing mix
3. Focused/Niche market: One marketing mix for different segments, e.g. additional to big market of builders a cement manufacturer focuses also on the diy market
4. Customised marketing: For each customer an own marketing mix, often in service firms

Question 7

What are the 3 key tasks in positioning?

Answer 7

1. Market Segmentation
2. Target market
3. Differential advantage

-> Where and how do we compete?

Question 8

What are the 4C keys to successful positioning?

Answer 8

Clarity
Consistency
Competitiveness
Credibility