chapter 6: segmentation, targeting, and positioning Flashcards
what is the segmentation targeting position process?
- strategy or objectives
- segmentation bases
- evaluate segment attractiveness
- select target market
- identify and develop positioning strategy
1+2= segmentation
3+4=targeting
5=positioning
step one of the segmentation targeting position process
-must be consistent with the mission statement
-derived from mission and current state
geographic segmentation
organizes customers into groups on the basis of where they live
demographic segmentation
groups consumers based on objective characteristics (age, income, gender, race)
psychographics (self-values, self-concept, lifestyles)
how consumers describe themselves, how they ive, and what underling psychological reasons determine those choices
self-values: life goals
self-concept: self-image
lifestyles
what is VALS?
values and lifestyle survey (a psychological tool developed by strategic business insights that classifies consumers into 8 segments)
innovators, thinkers, believers, achievers, strivers, experiencers, makers, and survivors
behavioural segmentation
groups customers based on why they buy, how often, an dhow they plan on using the products or services
occasion segmentation
groups based on when they purchase or consume a product or service
benefit segmentation
based on the benefits they derive from products or services
loyalty segmentation
strategy of investing in retention and loyalty initatives to retain the most profitable customers
usage rate
how often a person uses the product or service (occasional, light, regular, heavy)
geodemographic segmentation
grouping on basis of a combo of geographic, demographic, and lifestyle characteristics
what is step 3 of the segmentation targeting position process?
-must determine if target is worth pursuing by deciding if segment is identifiable, reachable, responsive, substantial, and profitable
what is step 4 of the segmentation targeting position process?
choose target market based on SWOT analysis by using targeting strategies
undifferentiated targeting strategy/mass marketing
when product or service is perceived to provide the same benefits to everyone
differentiated targeting strategy
targeting several market segments with a different offering for each
helps firms obtain a larger share of the market
concentrated (niche) targeting strategy
selecting a single primary target matket to focus all energies on
micromarketing (one-to-one)
tailors a product or service to suit an individual customer’s wants or needs (ex: build a bear)
what is positioning?
the mental picture that people have about a company and its products or services relative to competitors
positioning methods (value, product attributes, benefits and symbolism, competition)
value: relationship of price to quality is most important to consumers
product attributes: focus on the attributes that are most important and varies by target market
benefits and symbolism: emphasizes the benefits of the brands as well the psychological meaning of the brand to customers
competition: can position against them head to head or against an entire product classification
positioning by using perceptual mapping
- determine consumers’ perceptions and evaluations in relation to competitors
- identify the market’s ideal points
- identify competitor’s positions
- determine consumer preferences
- select position
- monitor position strategy
repositioning
strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis
