Chapter 6 - Segmentation, Targeting And Positioning

Question 1

What is the segmentation, targeting and positioning process?

Answer 1

1. Strategy/objectives
2. Segmentation methods
3. Evaluate attractiveness
4. Select target market
5. Identify and develop positioning strategy

Question 2

Why is segmentation, targeting and positioning necessary?

Answer 2

Because firms must position their offerings in the minds of customers so that customers understand why the product meets their needs better than competitive offerings

Question 3

Outline the different methods of market segments

Answer 3

Geographic
Demographic
Psychographic
Benefits
Behavioural

Question 4

Describe how firms determine whether a segment is attractive and therefore worth pursuing

Answer 4

Attractiveness is based on if the segment is:
Identifiable
Substantial
Reachable
Responsive 
Profitable

Question 5

What are the 4 different targeting strategies and explain each.

Answer 5

Undifferentiated: everyone might be considered a potential user
Differentiated: targeting several segments with different offerings for each
Concentrated: single/primary target
Micro marketing: offerings tailored to individual customers

Question 6

Determine the value proposition

Answer 6

Where a customers needs and wants overlap with a company’s offerings

Question 7

Define positioning and describe how firms do it

Answer 7

Showing the unique value a product provides and how it is better than and different from competitors.
Firms use a perceptual map displaying 2 or more dimensions, and position the product against competitors in a consumers mind