Chapter 6: Segmentation, Targeting and Positioning – building the right relationships with the right customers

Question 1

Steps in market segmentation, targeting and positioning:

Answer 1

1. segmentation- identify bases for segmenting the market. Develop segment profiles. (Geography, demographic, age and life cycle, gender, income, psychographic, behavioral)
2. targeting- develop measure of segment attractiveness. Select target segments.
3. develop positioning for target segments. Develop a marketing mix for each segment.

Question 2

Segmenting business markets:

Answer 2

consumers and business markets use many of the same variables for segmentation.
In addition business markets use:
- operating characteristics
- purchasing approaches
- situational factors
- personal characteristics

Question 3

> Requirements for effective segmentation:

Answer 3

• measurable
• accessible
• substantial
• differentiable - actionable

Question 4

Target marketing strategies:

Answer 4

Undifferentiated- Mass
Differentiated- Segment
Concentrated- Niche
Micromarketing- Local/individual

Question 5

Undifferentiated (mass) marketing:

Answer 5

market- coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Question 6

Differentiated (segmented) marketing:

Answer 6

market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Question 7

Concentrated (niche) marketing:

Answer 7

market- coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Question 8

Micromarketing:

Answer 8

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.

Question 9

Local marketing:

Answer 9

Tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores.

Question 10

Individual marketing:

Answer 10

Tailoring products and marketing programs to the needs and preferences of individual customers.

Question 11

Choosing a market coverage strategy:

Answer 11

> Company resources
Product variability
Product’s Life Cycle Stage
Market variability
Competitor’s Marketing strategies

Question 12

Positioning for Competitive Advantage:

Answer 12

Product’s position is the way the product is defined by consumers on important attributes.The place the product occupies in consumers’ minds relative to competing products.

Question 13

Choosing a positioning strategy:

Answer 13

1. identify a set of possible competitive advantages on which to build a position
2. choose the right competitive advantages
3. select on overall positioning strategy

Question 14

Identifying possible competitive advantages:

Answer 14

1. Product differentiation: consistency, durability, reliability, repairability.
2. Services differentiation: speed, convenience, careful delivery.
3. Image differentiation: convey benefits, positioning.
4. People differentiation: hiring, training better people than competitors.

Question 15

Choosing right competitive advantages:

Answer 15

> unique selling proposition:
- important
- distinctive
- profitable
- superior
- affordable
- communicable

Question 16

Possible value propositions:

Answer 16

1. more for more
2. more for same
3. more for less
4. the same for less
5. less for much less

Question 17

Communicating and Delivering the Chosen Position

Answer 17

Company must take strong steps to communicate and deliver the desired position to target consumers. The marketing mix efforts must support the positioning strategy. Must monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies.