Market Segmentation, Targeting and Positioning

Question 1

Segmentation: Benefits

Answer 1

Improved customer retention - cater to demands.

Enhanced opportunity for growth - build on current offerings.

More effective targeting - advertise where segment will see it.

Opportunities for dominance - what can serve you best?

Question 2

Consumer Market Segmentation: Behavioural

Answer 2

Based on individual’s behaviour relating to products.

Benefits sought - why buy?
Purchase occasion - season or situation?
Purchase behaviour - light, medium or heavy?
Usuage - heavy or light?

Question 3

Consumer Market Segmentation: Psychographic

Answer 3

Based on lifestyle and personality characteristics.

Lifestyle - the way time is spent.
Personality - traits, attitudes and habits.
Motives - emotional or rational?

Question 4

Consumer Market Segmentation: Demographic

Answer 4

Who might a product appeal to?

Age, lifecycle, gender, income, occupation, religion.

Question 5

Consumer Market Segmentation: Geographic

Answer 5

Nations, reigons, states, counties, cities.

Question 6

Consumer Market Segmentation: Socio-economic

Answer 6

Social class/socio-economic groups.

Question 7

Consumer Market Segmentation: Geo-demographic

Answer 7

Based on belief of micro-cultures.

Question 8

Organisational Market Segmentation

Answer 8

Organisational size - Large or SME?

Industry - Banking, healthcare etc.

Location - Global scale, cultural differences.

Choice Criteria - price sensitivity, product-orientation, service-orientation.

Purchasing Organisation - Centralised vs. Decentralised.

Question 9

International Market Segmentation

Answer 9

Geographic - by reigion, e.g. Western Europe, South-eat Asia etc.

Economic - level of economic devlopment.

Political and Legal - democratic, communist etc.

Cultural - language, religion etc.

Intermarket - like-minded consumers, e.g. affluent consumers.

Question 10

Successful Segmentation

Answer 10

Effective - Homogenous demand.

Measurable - size, characteristics.

Accessible - Responsive to marketing mix.

Actionable - resources to exploit it.

Profitable - Substantial.

Question 11

Targeting Marketing Strategies: Undifferentiated

Answer 11

Shotgun/scattergun approach - basic product.

Question 12

Targeting Marketing Strategies: Differentiated

Answer 12

Two or more segments - different mix for each.

e.g. Holiday Inn - business in the week, families at weekends.

Question 13

Targeting Marketing Strategies: Focused

Answer 13

Niche - be the best in a segment.

e.g. Tie Rack and Sock Shop.

Question 14

Targeting Marketing Strategies: Customised

Answer 14

Different mix for every customer - popular in B2B markets.

e.g. Architects, Rolls Royce.

Question 15

Socially Responsible Target Marketing

Answer 15

Sensitive or harmful products.

Vulnerable people.

Children.

Privacy with electronic communications.

Codes of conduct - e.g. ASA.

Question 16

Positioning: Overview

Answer 16

Linking products to the right consumers - make it the first thought of consumers.

Question 17

Positioning: What is it?

Answer 17

How consumer views products.

Message understood by target market.

Set in relation to market leader.

Is the company leader or follower?

Question 18

Positioning: Attributes of the Product

Answer 18

Price.

Use.

Product user.

Product class.

Competitors.

Emotion evoked (subjective).

Question 19

Postioning: How to do it?

Answer 19

Identify competitors.

Qualitative research - what do customer think about competitors?

Qualitative research - who would buy and why? Price? Numbers.

Question 20

Positioning: Keys to Success

Answer 20

Clarity - differentiaton must be clear to target market.

Consistency - positioning should stay the same.

Credibility - ensure differentiation exists. Don’t exaggerate.

Competitiveness - differentiation should give a competitive edge. Something of value to customer.