Chapter 7: Targeting & Positioning Flashcards
What should you avoid in marketing?
Don’t try to be all things to all people
How should you segment your market?
Segment your market in meaningful ways
What methods should you use for targeting and positioning?
Target & Position Using Analytics
What is segmentation in marketing?
the needs and wants of the most interested customers and focuses resources to maximize profits
What are the five criteria for effective market segmentation?
1) Substantial: Enough to make a profit
2) Measurable: Size and purchasing power must be measurable & identified
3) Differentiable: Segments must respond differently to marketing strategies
4) Accessible: Ability to reach & serve the market
5) Actionable: Ability to develop strategies to attract the segment to the company’s products.
What are segmentation bases?
characteristics that influence buying behavior
What are the demographic segmentation characteristics?
include age, gender, income, family size, and marital status
What is psychographic segmentation?
adds psychology and personality traits to demographics, focusing on lifestyle, opinions, interests, and activities
What does geographic segmentation consider?
considers market size in an area, population shifts, and customer convenience based on location
What is behavioral segmentation?
algorithm-based and focuses on behavior toward products, such as occasions, loyalty, and usage rate
What is targeting in marketing?
Evaluating each market segment to determine which segments present the most attractive opportunity to maximize sales.
What are the factors in selecting target markets?
1) Growth Potential
2) Level of Competition
3) Strategic Fit (with what the company is & wants to be)
What are the 3 Target Market Strategies?
1) Undifferentiated Targeting
2) Differentiated Targeting
3) Niche Marketing
What is undifferentiated targeting?
A strategy where the marketplace is viewed as one big segment
Example: “bananas”
What is differentiated targeting?
A strategy that pursues several different target markets at once with different strategies for each.
Example: Target going after college students & families
What is niche marketing?
A strategy that focuses on unique products that target a large share of a small market.
Example: “Eat Fit Go”
What is positioning?
Activities to create a certain perception of a product in the eyes of the Target Market.
What is the first step in positioning?
Analyze Competitors’ Positions: Understand how customers perceive competition.
What is the second step in positioning?
Define Competitive Advantage: Price-Quality Relationship, Attributes, & Application.
What is the third step in positioning?
Evaluate Feedback: Continuously listen to your customers; use feedback to improve and change your positioning.
What is a Positioning Statement?
Description of core target market & picture of how the firm wants the market to view its product.
What are the three parts of a Positioning Statement?
1) Target Market 2) How customers should view the brand 3) How the brand is better.
What is repositioning?
Reestablishing a product’s position in response to changes in the marketplace.
