Chapter 8 Flashcards
Segmentation Criteria
Measurable, accessbile, durable, substantial, meet unique needs
Targeting Criteria
Market size, expected growth, competitive position, cost to reach, maximize company profit
How to deal with Brand Champion Segmentation
Ignore hate group, sell to the swing group through the eyes of the love group
Brand Champion Segmentation Groups
Love, Swing, and Hate
Behavioral Segmentation
The market is divided based on differences in the core benefits customers seek, usage situations, brand loyalty, usage rates and price sensitivity
Psychographic Segmentation
The market is divided based on differences in personality, motives, or lifestyle
Demographic Segmentation
The market is divided based on differences in age, gender, income, level of education, social class, family composition, religion, or ethnicity
Geographic Segmentation
The market is divided based on differences in geographic regions, population density, population size, or climate
Hierarchical Values Analysis
Gains insight into product positioning by interviewing customers to discover their core motivations or beliefs behind purchasing decisions
Gap Analysis
Compares brands based on the importance and performance of their differentiating features and benefits
Perceptual Mapping
Getting a feel for how customers perceive brands
Positioning Methods
Perceptual mapping, gap analysis, hierarchical values analysis
Unique Selling Proposition
- Each advertisement must make a proposition to the customer
- The proposition must be one that the competition either cannot or does not offer
- The proposition must be so strong that it can move the masses and pull new customers over to the product
Positioning
The act of designing the company’s product offering so that it occupies a distinct and valued place in the target customers’ minds.
Segmentation Categories
Geographic, Demographic, Psychographic, Behavioral
