Learning Unit 3 Flashcards
List the areas on which segmentation is based.
- Demographics
- Economic
- Usage
List areas of segmentation on the grounds of demographics.
Age Generations Gender Nationality Ethnicity Social Class Location Marital Status Education Occupation
List areas of segmentation on the grounds of economic elements.
Income
Saving
Borrowing
Spending
List areas of segmentation on the grounds of usage elements.
Frequency
Benefit
Criticality
Explain syndicated research.
- independently collected/conducted
- market research firm uses expertise/experience to determine study
- gives overview of the market
- helps identify industry trends
- measures brand awareness, perceptions, and strength
- competitive intelligence (info about competitors)
Consider and substantiate various segmentation options in context of brand building strategy.
- market targeting options
- market aggregation
- segmentation process
- merits and limitations of segmentation
- variables in segmentation
- selecting potential target markets
- approaches to target marketing
Explain market targeting options.
UNDIFFERENTIATED MARKETING
- doesn’t target specific segment
- mass marketing
- cheaper
- challenge: produce universal product
- coke used to use this
DIFFERENTIATED MARKETING
- targets several segments
- develop products and services with several marketing mix strategies per segment
- e.g. airline offers 1st class, business class and economy
CONCENTRATED MARKETING
- concentrate marketing on one segment
- develop product for this segment
- low cost therefore good for small business
- but it reduces number of customers
- Rolls Royce targets premium
Explain market aggregation.
- product standard product(s) to mass market hoping it will appeal to as many customers as possible
- undifferentiated marketing
- e.g. diet tablets aimed at weight watcher market
- mass market customisation ie BMW select
Explain the segmentation process.
SITUATION ANALYSIS
- Where does org stand? Strengths, objectives, weaknesses
MARKET SEGMENTATION
- Select NB variables to be used for segmentation
- Profile segment based on variables
MARKET TARGETING
- Determine attractiveness of each segment select most attractive
PRODUCT POSITIONING
- ID positioning to be used in each segment (choose correct positioning strategy)
MARKETING MIX
- Develop and implement marketing mix strategy
Explain merits and limitations of segmentation.
:)
- Focus on consumer needs
- Identify new segments and therefore new opportunities
- Guides allocation of marketing resources
:(
- Develop separate models and market offerings
- Limited coverage
- Differentiate products excessively = :(
Explain variables in segmentation.
Geographic
Demographic
Psychographic
Behavioural
Explain the process of selecting potential target markets.
- Segments must be…
- Identifiable
- Worthwhile
- Stable
- Economically Accessible - Evaluate according to:
- Market size and potential
- Attractiveness and profitability
- Resources and skills of the organisation
- Compatible with org objectives
- Cost of researching target market - Decide on appropriate evaluation criteria for your business
- Weighting on factors according to importance.
- Consider current position of target markets.
- Project future position of target markets.
- Evaluate implications of possible future changes.
Explain the approaches to target marketing.
NICHE SEGMENT MARKETING
- customers share common needs, but
- customers differ in demographics
- eg Ferrari
MASS CUSTOMISATION
- tailored to unique needs of customer, who is seen as a potential unique segment
- combo of niche and differentiated marketing
List elements of ‘positioning’ as a part of strategic brand building.
- product positioning
- factors that influence positioning
- positioning methods
- positioning strategies
Explain product positioning.
- how customers perceive advantages and characteristics of products
- must understand customer buying criteria
- can be applied to single product or range of products
- develop positioning statement that identifies the target market, product benefits and diferentiation
Explain factors that influence positioning.
- performance
- price
- distribution network
- advertising
- customer profiles
- media used
Explain positioning methods.
ATTRIBUTE POSITIONING positioned in terms of outstanding attributes BENEFIT POSITIONING unique benefits of products ie Vanish Stain Removal USE POSITIONING position in terms of use or application USER POSITIONING position with users in mind COMPETITOR POSITIONING positioned against competitor offerings ie BMW vs Merc PRODUCT CATEGORY different product category QUALITY/PRICE exceptional quality or lowest price
Explain positioning strategies.
GRADUAL POSITIONING - continuous market adaptation
RADICAL REPOSITIONING
INNOVATIVE REPOSITIONING - new strategic position offer market opportunities
ZERO-POSITIONING - no change
Explain Psychographic Segmentation.
- market segmentation strategy
- divide by social class for promotion of lifestyles
- use personality factors to segment markets by giving products personalities that match consumer personalities.
Identify primary target market.
- total number of potential buyers for your product
- those most likely to buy your product or service
- most revenue from sales comes from them
- highest volume of sales
- most likely to buy now
- must 1st define who your primary buyer is
- specific group you want to attract to your product and service
- determine commonalities in customers consider sales figures and related demographic info
- consider your biggest opportunity for growth
Identify secondary target market.
- next greatest potential to buy now or in the near future or to influence someone else to buy from you
- includes future primary buyers (those buying at higher rate within small target segment)
- characteristics and buying behaviours usually different from primary target market
- fewer demands
- may be a small segment
- determine those who come into some regularly
- may use market research to determine secondary target market
- may design less expensive product for target market
- included in marketing plan
List 3 main categories of archetypes.
Ego Type
Soul Type
Self Type
Explain various archetypes that fall under the “Ego Type” category.
INNOCENT
free to be you. desire to get to paradise, be happy, fear being punished, do things right naive, saint, dreamer
ORPHAN
men/women are equal, desire to connect with others, develop ordinary solid values, down to earth, empathy, truth, good neighbour
HERO
where there’s a will, there’s a way, prove worth through courageous act, improve the world, arrogance, competence, courage, warrior, crusader
CAREGIVER
love neighbour, protect, care for others, help others, selfless, compassion, doing for others
Explain various archetypes that fall under the “Soul Type” category.
EXPLORER
don’t fence in, free to explore, authentic, fulfilling life, misfit, wanderer seeker.
REBEL
rules made to be broken, revenge, revolution, overturn, what isn’t working, radical freedom, outrageous, rebel, revolutionary, misfit, wild man
LOVER
lover, you’re the only one, intimacy, experience, relationship with those they love, emotionally attractive, sensualist.
CREATOR
if you can imagine it it can be done, create value, vision, artistic control and skill, create culture, express vision, creativity, inventor, dreamer
Explain various archetypes that fall under the “Self Type” category.
JESTER
YOLO, live in the moment, funny, jokes, joy, fool, trickster, joker, comedian
SAGE
truth, intelligence, analysis to understand the world, wisdom, intelligence, scholar, detective, researcher
MAGICIAN
make dreams come true, visionary, inventor, leader, healer, win-win solutions
RULER
power, control, create prosperous, successful family chaos, responsibility, role model
Develop comprehensive target market to inform comm strategy and campaigns.
XEROX
- understand how the cost of parking could be adjusted reduce traffic
- dual method of data and ethnography
- increase cost of desirable parking spaces and decreased cost of undesirable parking spaces to reduce circling traffic
- positive results
- understand why/how people had problems with parking meters (video recording behaviour)
- ethnography confirms that right approach is being taken
