Lecture 6/7- Market Segmentation, Targeting and Positioning

Question 1

What is segmentation?

Answer 1

to define the market and find segments within it

Question 2

What is targeting?

Answer 2

to select the segments that can be served the most effectively and efficiently by the companies’ recourse

Question 3

What is positioning?

Answer 3

to communicate how we want to the target marker to think and feel about the brand

Question 4

What is the process of segmenting, targeting and positioning?

Answer 4

1. Identify market needs
   - what are the needs in the current market that you can target
   - what is the benefit of the product
2. link needs to actions
   - find the segments in the market and target them
3. Execute marketing program actions
   - marketing mix (4 Ps)

Question 5

What are the 3 main segmentation statergies?

Answer 5

1. 1 product but multiple market segments
2. multiple product and multiple market segments
3. no segment, and mass consumerization

Question 6

What are the 5 steps in segmenting and targeting?

Answer 6

1. group potential buyers into segments
2. group products to be sold into categories
3. develop a market-product grid and estimate size of markets
4. select target markets
5. take marketing actions to reach target markets

Question 7

Step 1- Group potential buyers into segments

Answer 7

• process of collecting prospective buyers into groups or segments that
  1) have common needs
  2) respond similarly to a marketing action

Question 8

What are the 4 segmentation bases?

Answer 8

1. Demographic
2. Psychographic
3. Geographic
4. Behavioural

Question 9

What is included in the geographic segmentation?

Answer 9

• people who live in, or shop at, a particular geographic area
• climate
• culture
• population
• urban, suburban, rural
• location

Question 10

What is included in the demographic segmentation?

Answer 10

• age
• gender
• income level
• family status
• occupation
• ethnicity
• education level

Question 11

What is included in the psychographic segmentation?

Answer 11

• lifestyle
• personality
• interests
• beliefs
• activities
• attitudes
• goals
• values

Question 12

What is included in behavioural segmentation?

Answer 12

• usage behaviour
• loyalty
• engagement
• benefits sought
• occasion

Question 13

What is the criteria used in selecting target markets?

Answer 13

1. market size
2. expected growth
3. competitive position
4. cost of reaching the segment
5. organisational compatibility

Question 14

What is positioning?

Answer 14

refers to the place a product occupies in a consumers’ mind based on important attributes relative to competitive products

Question 15

What is differentiation positioning?

Answer 15

this is when a company highlights what the different and unique selling points of their product

Question 16

What is head-to-head positioning?

Answer 16

this is claiming you are better than another company and focus on the unique selling points, show that you are superior