Chapter 5: Segmentation, Targeting and Positioning

Question 1

Define Behavioural Segmentation.

Answer 1

Based on past purchase behaviour or online search activity in particular product categories.

Question 2

Define Psychographics.

Answer 2

• Psychological makeup & lifestyle including attitudes, values, motivations.
• most difficult to identify

Question 3

Define Demographics.

Answer 3

• age, income, ethnicity.

- easiest; most widely used

Question 4

Define Geodemographic.

Answer 4

zip code areas, etc.

Question 5

Define Positioning.

Answer 5

key feature, benefit, image

Question 6

Define market segment.

Answer 6

Group of customers who share a similar set of needs and wants.

Question 7

Define market segmentation.

Answer 7

Dividing a market into distinct groups of customers who might require separate products and/or marketing mixes.

Question 8

What does market segmentation consist of?

Answer 8

• identify bases (e.g. behaviour, demographics) to segment the market
• develop profiles of resulting segments

Question 9

What is market targeting?

Answer 9

• develop measures of segment attractiveness

- select the target segment(s)

Question 10

What is market positioning?

Answer 10

• develop positioning for each target segment

- develop marketing mix for each target segment

Question 11

What is an online behavioural targeting?

Answer 11

Tracks the online site-selection behaviour of users so as to enable advertisers to serve targeted ads.

Question 12

Privacy concerns?

Answer 12

Technological advances increase the ability to serve consumers at the risk of invading their privacy

Question 13

What are the 5 criteria for segment effectiveness?

Answer 13

1. Measurable - degree to which useful info exists on the segment.
2. Substantial - degree to which the segment is large enough and/or profitable to be worth attention (oprhan drug act)
3. Accessible - degree to which a firm can focus their marketing efforts on the segment
4. Differentiable - degree to which the segment is distinguishable and will respond differently to changes in marketing mix elements and programs. (spring break)
5. Actionable - degree to which the programs can be formulated and implemented

Question 14

List the 3 target market strategies.

Answer 14

1. Undifferentiated marketing - MM applied to mass market
2. Differentiated marketing - MM applied to separate segments
3. Concentrated marketing - one MM applied to one separate segment (e.g merz + high-end owners)

Question 15

Define Brand Positioning.

Answer 15

The key feature/attribute, benefit or image that the brand stands for in the target audience’s collective mind.

Question 16

Define Positioning Statement.

Answer 16

The central idea that encapsulates a brand’s meaning and distinctiveness vis-a-vis competitive brands.

Question 17

An effective positioning statement must:

Answer 17

1. Convey a consistent message
2. Define a brand’s competitive advantage
3. Motivate customers to action

Question 18

What does attribute positioning consist of?

Answer 18

1. Product related - design, material, packaging (consumer’s first touch point)
2. Non-product related - Reflect user and user imager (e.g RP)

Question 19

What does benefit positioning consist of?

Answer 19

1. Functional needs - able to solve consumers’ consumption-related problems
2. Symbolic needs - associate brand ownership with a desired group, role, self image
3. Experiential needs - brand’s extraordinary sensory value or rich potential for cognitive stimulation

Question 20

What is functional needs?

Answer 20

the needs for convenience, safety, good health, cleanliness, etc.

Question 21

What consumers does symbolic needs target?

Answer 21

directed at consumers’ desire for self-enhancements, group membership, affiliation, altruism, and other abstract need states.

Question 22

What is experiential needs?

Answer 22

promoted as being out of the ordinary and high in sensory value.

Question 23

Why reposition a brand?

Answer 23

1. Increase competitiveness
2. Extend product life cycle
3. Refresh a brand image
4. Enter new market segments

Question 24

Give an example of brand repositioning.

Answer 24

Aldi emerging into the China market have to accomodate to the Chinese market by repositioning themselves as a high-end grocery brand.