Chapter 6 Flashcards
Segmentation-Targeting-Positioning Process
Step 1: Establish Overall Strategy or Objectives
Step 2: Segmentation Bases
Step 3: Evaluate Segment Attractiveness
Step 4: Select Target Market
Step 5: Identify and Develop Positioning Strategy
Geographic Segmentation
The grouping of consumers on the basis of where they live
Demographic Segmentation
The grouping of consumers according to easily measured, objective characteristics such as age, gender, income and education
Psychographics
This segmentation base delves into how consumers describe themselves; allows people to describe themselves by using those characteristics that help them choose how they occupy their time and what underlying psychological reasons determine those choices
Self-values
Goals for life, not just the goals one want to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
Self-concept
The image a person has of himself or herself, a component of psychographics
Lifestyles
How we live our lives to achieve goals
VALS
A psychological tool developed by Strategic Business Insights that classifies consumers into 8 segments:
- innovators
- thinkers
- believers
- achievers
- strivers
- experiencers
- makers
- survivors
Behavioural Segmentation
Groups consumers based on the benefits they derive from products or services, their usage rate, their loyalty, and their occasion
Occasion Segmentation
Groups consumers based on when they purchase or consume a product or service
Benefit Segmentation
Groups consumers based on he benefits they derive from products or services
Loyalty Segmentation
Strategy or investing in retention and loyalty initiatives to retain the firm’s most profitable customers
Usage Rate
How often a person uses the product or service; occasional, light, regular, or heavy users
Geodemographic Segmentation
The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics
PSYTE clusters
The grouping of all neighbourhoods in Canada into 60 different lifestyle clusters
Evaluate Segment Attractiveness
- identifiable
- reachable
- substantial / profitable
- responsive
Undifferentiated Targeting Strategy (Mass Marketing)
A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups
Differentiated Targeting Strategy
A strategy through which a firm targets several market segments with a different offering for each
Concentrated (or niche) Targeting Strategy
A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs
Micromarketing (one-to-one)
An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs
Mass customization
The practice of interacting on a one-to-one basis with many people to create custom-made products or services; pricing one-to-one marketing to the masses
Positioning
The mental picture that people have about a company and its products or services relative to competitors
Value Proposition
Communicates the customer benefits to be received from a product or service and the reason(s) for want to buy it
Positioning Statement
Expresses how a company wants to be perceived by consumers
Positioning Methods
- value
- product attributes
- benefits and symbolism
- competition
- market leadership
Perceptual Map
Displays, in two or more dimensions, the position of products or brands in the consumer’s mind
Ideal Point
The position at which a particular market segment’s ideal product would like on a perceptual map
Brand Repositioning (Rebranding)
A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis its changing market preferences
