class 4

Question 1

what is stp

Answer 1

segmentation; identify variables that allow you to break up the market into different groups of people
targeting: evaluating the attractivness of the segments and choose a segment to market to
positioning: orient your marketing actions to meet the needs of that target segment. brings u to the four ps

Question 2

what is a market segment

Answer 2

a subgroup of people or orgs that have similar product needs and will respond similarly to marketing action

Question 3

what is market segmentation

Answer 3

the process of dividing a market into meaningful, relatively similar, identifiable segments or groups

Question 4

what is undiffereinated/ mass marketing

Answer 4

Marketing to the entire market the same way
Goal: reach the widest audience possible
you dont need to create separate strategies for Dif groups
used for items that appear the same to everybody

Question 5

what are the pros and cons of undifferientaed mass marketing

Answer 5

Advantages : saves resources because you only have to manage one product
Disadvantages: not all products truly have mass appeal

Question 6

what is differentiated/ segmented marketing

Answer 6

Separate offerings for separate target markets
Goal: increase sales un each target market
La Senza has 3 store formats: la senza, la senza spirit and la senza express which appeal to different segments (one is for confident 18 to 25 year old women, one is for activewear and workout gear..)

Question 7

what are the pros and cons of differentiated/ segmented marketing

Answer 7

Advantages: create strong market presence
Disadvantages: can be expensive and challenging to succeed in multiple target markets

Question 8

what is concentrated/ niche marketing

Answer 8

Focus on only a small target market
Goal: establish a competitive advantage amongst this “minimum viable audience”
When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs
Ex: Chez Cora focuses on service breakfast and lunch only and their restaurants are open only until 3 pm

Question 9

what are the pros and cons of concentrated / nice marketing

Answer 9

Advantages: saves resources – especially good strategy for smaller companies
Disadvantages: vulnerable to changes in demand amongst the niche market, You are putting all of your eggs in one basket, if demand changes or drops you are in a risky position

Question 10

micro marketing

Answer 10

When a firm tailors a product/service to suit an individual customer’s wants or needs
Small producers and service providers generally can tailor their offering to individual customers more easily, whereas it is more difficult for larger companies to achieve this

Question 11

why segment

Answer 11

More precise definition of who your customers are and what they want/ need
Clarify marketing objectives
Improve resource allocation
BUT we need to find a segment that is small enough to serve, and large enough to be profitable

Question 12

how to segment?

Answer 12

know your market segment–> do research, deliver what they beed
aim to be the best for the particular market segment you serve –> Be the best at something and good enough at everything else
Deliver value to your customers better than you competitors

Question 13

what are the steps to segment and target

Answer 13

1. Establish strategy and objectives (segmentation )
2. Group buyers into segments–> find observable segmentation bases (segmentation )
3. Evaluate segment attractiveness, target market size (targetingO
4. Select your target segment(s) (targeting)
5. Take marketing actions to reach target markets (positioning)

Question 14

what are observable segmentation bases

Answer 14

Geographic - country, province, city, rural/urban
demographic : age gender, family size, income
Psychographic: personality, lifestyle, attitudes
Behavioral - observed behaviors like prior use

Question 15

criteria for choosing a desirable target segment

Answer 15

Size
Growth
Cost of reaching them
compatibility/ ease of entry→ how compabulity is your business with your target market
Competitive position → important,

Question 16

Step 1: establish overall strategy or obejctuves

Answer 16

The first step is to articulate the mission and the objectives of the companies marketing strategy early
The segmentation strategy must then be consistent with and derived from the firms mission and objectives, as well as SWOT

Question 17

Step 2: segmentation bases

Answer 17

Use a formal approach to segment the market
Developing descriptions of the different target market segments and their needs, wants and characteristics using segmenation bases → helps the firm understand the customers
Marketers use various segmentation bases like geographic, demographic, psychographuc and behavioural

there also benefits segmentation –> watch example

Question 18

Step 3: evaluate segment attractiveness

Answer 18

Marketers must frust determine whether the target market is worth pursuing by using several descriptive criteria: is the segment identifabe, reachable, responsive, substantial and protifbake

Question 19

Step 4: Select Target Market

Answer 19

The key factor likely to affect this decision is the marketer’s ability to pursue such an opportunity or target segment
A firm is likely to assess both the attractiveness of the opportunity (opportunities and threats based on the SWOT analysis - profitability of the segment) and its own competencies (strengths and weaknesses based on SWOT analysis) very carefully

Question 20

Step 5: identify and develop positioning strategy

Answer 20

Positioning is the mental picture or perception (the thoughts, feelings..) that people have about a company and its products/brands relative to competitors. This mental picture is formed from sources like friends, family, reference groups, articles, newspapers, TV.. Consumers form their ideas and feelings about a product/brand, and these drive them toward or away from a brand
The positioning strategy can help communicate the firm’s or product’s value proposition, which communicates the customer benefits to be received from a product/service and provides reasons for wanting to purchase it