Market Segmentation & Targeting Flashcards
What was Durkheim’s theory about solidarity
Mechanical vs Organic solidarity shows we have evolved to specialise and depends on others for services
Mass marketing
Ignoring segments and marketing to the whole market
Segmentation - Smith 1956
Viewing a heterogeneous market as a number of smaller homogenous markets
Heterogenous market
Products or services are unique
Homogeneous market
All products fulfil the same need so it is the smaller details that determine which product customers buy
3 benefits of Segmentation
any from:
- Customers at core of decisions
- Build loyalty and predict purchase patterns
- Identify new product and service opportunities
- Position product closely to target segment
What are the 4 segmentation categories
Geographic, Psychographic, Behaviour, Demographic
What are the 4 stages of Customer Relationship Management (CRM)
Identify customers -> Differentiate -> Interact -> Customise aspects of product
What is the Market Share Strategy
Product managers sell one product at a time to as many customers as possible
What is the Share of Customer Strategy
Customer manager sells as many products as possible to one customer at a time
a) Concentrated strategy
b) Differentiated strategy
c) Customised (micro) strategy
d) Undifferentiated strategy
b) Uses multiple specialisations with several brands that cover different product needs
a) Concentrated strategy
b) Differentiated strategy
c) Customised (micro) strategy
d) Undifferentiated strategy
a) Uses specialisation to focus on single segment
a) Concentrated strategy
b) Differentiated strategy
c) Customised (micro) strategy
d) Undifferentiated strategy
c) Allows customers to create/ customise their own product specific to them
a) Concentrated strategy
b) Differentiated strategy
c) Customised (micro) strategy
d) Undifferentiated strategy
d) Presents product(s) to entire market
