Market Segmentation And Positioning Flashcards
Describe the market segmentation, targeting and positioning
Divide the whole market into different customer segments with similar needs and chose which segment to target. Than you can position your brand to align with that target
What differentiates market segmentation and product differentiation
Segmentation is targeted while product differentiating is a result of different talent, solutions and makers tastes
How does segmentation for retail and b2b differ
When segmenting. Consumer groups the segments are characterized by the consumers behavior and status while businesses are commonly segmented based in organization type and purchasing patterns
What ate the four approaches to segment targetting
Undifferentiated, differentiated, concentrated/niche and customized
What is market positioning
Giving the customer reasons to buy by sending signals of alignment to their preferences and needs
What is the stp process
Sevmentation->targeting->positioning
To get the most easily accessed and attractive customer’s
What is the product differentiation strategy
Highlighting the products attributes and features highlighting the differences between it and the competition, it is make first and hope people like it as opposed to segmentation strategy which designs with a group in mind
What is the microeconomic result when there are a limited numbers if producers that focuses on different segments of the market
Monopolistic competition
Is market segmentation focused on bending demand to existing supply
No on bending supply to existing demand, product differentiation focuses on supply
What is the difference between the buildup and breakdown methods of market segmentation
Buildup identifies similarities between customers while breakdown identifies and highlights differences between groups
What criteria are customers commonly categorized under
Behavioral, psychological and profile criteria
Give example of behavioral consumer criteria
Their purchase and consumption patterns and their media, technology and other product usage
Give examples of psychological consumer criteria
Their lifestyle, personality, opinions, attributes, motives and needs
Give examples of consumer profile criteria
Their demographic, life stage and location
What type of data is easy and cheap to obtain but ineffective at predicting behavior
Profile data like demographic and geographic data
What type if data is costly to obtain and maintain but effective at predicting behavior
Behavioral data like purchase history
What is psychography
The science of predicting a complete lifestyle through looking at limited activities and opinions
What is geodemography
The relationship between a persons living arrangements and their behavior
Name a couple of geodemographic profiling systems
ACORN and Mosaic
Name three perspectives from which you can analyze the usage of a product
The Social interaction perspective, the experiential perspective and the functional utalisational perspective
What doest it mean if a customer has a high RFM value
That they have purchased recently and frequently
By what variables do you segment b2b markets
By different kinds if firmographics and professional buyer needs and preferences
What are firmographics
The study of how different aspects of a firm such as location and size affect their needs
Name the main organizational characteristics
Size, location, industry, market served and value
By what characteristics may business customers (buyers) be characterized by
DMU decision making units such as attitude, policies and budget in addition to Choice criteria or the purchase situations
What are SCI codes
Codes signifying industry that are rarely used as they are full of to broad categories. Instead businesses prefer to use custom names, so called verticals to segment their potential business customers by industry
What is a CRM system
A customer relation management system is a database containing the location, contact info, purchase and transaction history and decision making unit structure of the business customers
Why are defectors in B2B marketing
Those prospecting buyers who decide to abandon their commitment
Why is it important to retain information about defectors
To recognize patterns and identify what makes who leave
What are the DAMP criteria for targeting a market segment
That the segment is distinct, accessible, measurable and profitable
What is the undifferentiated approach to targeting
To ignore segmentation and focus in the demands if the while market. Common when segmentation and differentiation is impossible like on the market for sand or water
Describe the differentiated targeting approach
Developing separate products for different segments. While this adapts better to the customers needs it risk spreading resources thin by focusing on more than one segment
Describe the concentrated/niche marketing strategy
Hyper focusing on one segment common among small businesses or when one segment is far more attractive than others. However this ignores large parts of the market
Describes the customized targeting strategy
Develop a strategy for each customer instead if each segment. Costly but effective when dealing with few high value customers such as in B2B
What critiques are there to market segmentation
It does not stress differentiation from competitors enough and it is costly and difficult to implement properly as the approach may clash with established practice and is often sold as a consultant scheme ill fitted to the actual business. Many such segmentation methods are also unproven in their effectiveness
How do you position a company towards a market segment
By adapting the product and user experience to the segments needs and then advertise your self in a way that changes your perception in the minds of the target
What is perceptual mapping
Creating a visual representation of attributes where you place different brands, for example a political compass. To dominate a segment you need to have distance to other brands on the perceptual map
What is a c-d map
A visual representation where brands attributes are compared to a dominant player like cocacola among soft drinks. The Centrality axis highlights similarities and the differentiation axis highlights the differences to that brand.
Name each corners in the cd map
Top right are aspirational and are highly distinctive and diferentiated, bottom right are mainstream with wide appeal but low differentiation. Unconventional are top left and distinct but not iconic and peripheral brands (bottom left) are seldom noticed as they are similar to the mainstream but lack common appeal. The higher top right you come the more of a trendsetter are you
What is the difference between functional and symbolic postioning
Functional positioning focuses on the tangible attributes that are to match the segments needs while symbolic positioning is mainly concerned with intangible social and hedonic perceptions
What are the risks with repositioning
It is costly, and you might lise the old audience and fail to garner a new one. Simply put you stand to lose it all except further debt
In what ways may you implement positioning
- First change the tangible attributes to better fit the current segment and then communicate those improvements to the same audience.
- Just change the advertisement
- Target the same product to a new market
- Adapt a product to a new segment and target propositions to the new segment.
