Chapter 9 - Segmentation, Targeting and Positioning Flashcards
Mass-marketing
a strategy that presumes there is one undiffereiented market and that one product will appeal to all consumers in that market (“one size fits all”
What are the four steps in a customer-driven marketing strategy?
WHO YOU WANT TO TALK TO
1) Segmentation -
2) Targeting -
WHAT YOU WANT TO TALK ABOUT
3) Differentiation -
4) Positioning -
Market segmentation
dividing a market into identifiable groups based on similar characteristics
Demographics
measurable population variables (age, income, gender, education, religion)
Geographics
dividing a market into geographical units (nations, states, cities)
Psychographics
dividing the market based on lifestyle, social class, personality
Metrosexual vs Retrosexual (male shoppers)
Metro - urban sophisticate
Retro - rejects feminism, traditional male
Behavioral segmentation
divides buyers into groups based on their knowledge, attitudes, uses or responses concerning a product (occasion, user status, usage rate, loyalty status)
Benefits segmentation
Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses
Requirements for effective segmentation
1) Measurable - size, purchasing power
2) Accessible - reached and served
3) Substantial - profitable enough
4) differentiable - distinguishable
5) Actionable - effective programs designed to attract
Target market
set of buyers sharing common needs or characteristics that the company decides to serve
Market targeting strategies
1) Undifferentiated
2) Differentiated
3) Concentrated
4) Micromarketing
Undifferentiated (mass)
single marketing mix directed at the entire market with a homogeneous market
Differentiated
targeting two or more segments with a marketing mix for each heterogeneous market (P&G owning Tide, Dawn, Downy, Gain)
Concentrated
targeting a single market segment using one marketing mix in a heterogenous market
