lecture 2 (Market segmentation) Flashcards
What are the 3 stages in customer driven marketing strategy ? STP ?
Market segmentation (S)- identify similar groups of customers Target Market (T) - identify which group to target brand/ product positioning (P)- creating a concept to appeal to the target market
Is the overall market heterogenous or homogenous ?
Heterogenous meaning customers are not like in their needs.
What is the benefit of segmenting the overall market to be homogenous ?
all customers within the segment should be alike and respond uniformly to marketing strategies.
What are the 5 properties of a market segment ?
Measurable - eg size
Accessible
Substantial -big enough to be worth targeting
Actionable - should offer something of value
Differentiable - different to other segments
What are the 4 ways to segment a consumer market ?
Geographic
Demographic- age, gender
Behavioural - occasion, benefits
Psychographic- Personality, lifestyles
What are the 4 types of market target strategies ?
Undifferentiated (mass) marketing
Differentiated (segmented) marketing
Concentrated (niche) marketing
Micromarketing
What is product position ?
the way the product is defined by consumers on important attributes
What is a USP >
Unique selling point- should be consistently advertised as it shows differentiation to the customer
What is undifferentiated marketing ?
This involves mass-producing, mass-distributing, and mass-promoting
nearly the same product in about the same way to all consumers.
What is differentiated marketing ?
The firm has identified segments, and their evaluation shows where it is profitable for them to target.
What is concentrated marketing ?
Market segmentation shows various segments, but the company only focuses on one of these segments.
What is micromarketing ?
Marketing is tailored to the individual needs of local customers or individuals/ organisations.
