L8: Segmentation, targeting and positioning

Question 1

Segmentation vs. Environmental Scanning

Answer 1

Segmentation:
- different traits between customer groups

Environmental scanning:
- common traits among customers

Question 2

Variables used for consumer segmentation

Answer 2

Soft variables:
• benefits sought
• usage
• Lifestyle

Hard variables:
• demography (age, gender, income)
• geography (urban vs. countryside, different countries)

Question 3

Evaluation of segmentation

Answer 3

• effective
• measurable
• accessible
• actionable
• profitable

-> there often is a weak point in segmentation, difficult to fulfill all criteria

Question 4

Compromise between soft and hard segmentation variables

Answer 4

Challenge with using soft variables:
- not measurable (How large is the segment? Is it profitable?)

Challenge with using hard variables:
- Not effective (Different needs in segment. How to design offering?)

Question 5

Targeting

Answer 5

1. Focused
   marketing mix -> specific segment
2. Undifferentierad
   marketing mix -> whole market
3. Customized
   marketing mix -> customized marketing mix for every customer

Question 6

Positioning

Answer 6

• differentiate from competitors and occupy a meaningful and distinct position
• one offering, different competitors

Question 7

Effective positioning

Answer 7

• Clarity
Communicated in simple and memorable way

• Consistency
Communicated during long time period

• Credibility
Correspond to customers’ perception and experiences of brand

• Competetiveness
Something that customers demand and competitors do not supply