Lecture 5 - Market Segmentation, Targeting and Positioning Flashcards
What are the commercial packages available to segment people according to where they live?
ACORN (A Classification of Residential Neighbourhoods)
Mosaic
PinPoint
What are the three ways to segment consumers?
BP’s Prices (BPP)
Behavioural
Psychographic
Profile (Demographic, Geographic, Geodemographic)
What are some of the elements of behavioural consumer segmentation?
Benefits sought Purchase occasion Purchase behaviour Usage Perceptions and beliefs
What are some of the elements of psychographic segmentation?
Lifestyle
Personality
What are some of the elements of consumer profile segmentation?
Demographic
Socio-economic
Geographic
Geodemographic
Why segment a market?
‣ meet customer needs more precisely
‣ increase profits
‣ segment leadership (Niche?)
‣ customer retentions
Why segment demographically? (Profile)
‣ gives insight into the nature of the market and likely segments to whom a particular product may appeal
‣ predict likely demand
‣ identify future trends / market developments ‣ easy to obtain and relatively inexpensive
What are the 5 elements of successful segmentation? (AAPIE)
Accessibility Actionable Profitable Identifiable & Measurable Effective & Substantial
Three types of marketing?
FUD
Focused (Niche)
Undifferentiated
Differentiated (Multi-Segment)
What characterises Focused (Niche) Marketing?
The niche marketer concentrates on being the very best in a single (often tiny) market e.g. Tie Rack and Sock Shop
What characterises Undifferentiated marketing?
Co. employs a ‘shotgun / scatter gun’ approach - basic / generic product with broad appeal. Classic examples such as petrol, salt and flour no longer valid.
What characterises Differentiated (Multi-Segment) Marketing?
Concentrate on two or more segments and offer a differentiated marketing mix for each of them e.g. The Holiday Inn - business market during the week, families at the weekend
4 C’s for successful positioning?
Clarity - Message must be clear.
Consistency - Message must be focus and not change regularly.
Credibility - Message must have a founded basis to it.
Competitiveness - Differential advantage must have competitive edge.
What is Image Repositioning?
Same Product and Target Market - Complan: From old sickly people to active older people.
What is Product Repositioning?
Different Product but same Target Market - Ford: Modeo, boring and dull. Iosis, new and fresh designs.
