MS - marketing segmentation, differentiation n and positioning

Question 1

what are marketing strategies

Answer 1

The techniques used by the business to achieve their marketing goals of increased sales revenue and market share

Question 2

the marketing strategies

Answer 2

1 The foundation of all marketing – how a business communicated information about their PHYSICAL product.

2 Marketing needed to expand its range of techniques as the range of services and tertiary industry grew.

3 Business needed to further adapt existing strategies to a globalised environment AND digital marketplace.

4 But really before you can reach customers with these techniques you have to reflect on THREE things:

a) How will I divide my potential customers up into groups?
b) How will I speak about my good or service?
c) How will I will I differentiate my good or service?

Question 3

the marketing mix

Answer 3

Collectively this range of marketing strategies is referred to as the marketing mix.

1. A business will not always use all of these strategies or all of them equally
2. The mix must be coherent and send a consistent and cohesive message

Question 4

market segmentation

Answer 4

Involves breaking the market up into groups based on common characteristics

Used to determine the businesses target market

It is an important step as it allows the business to specifically tailor its marketing strategies

Methods of segmentation include: 
A) Geographic segmentation
B) Demographic segmentation
C)Psychographic segmentation
D) Behavioural segmentation

Question 5

Geographic segmentation

Answer 5

Geographic segmentation involves grouping people to determine segments based on where they live.

Examples include:
 The country or state
 City, regional area or rural area

Question 6

Demographic segmentation

Answer 6

Demographic segmentation involves grouping people according to their personal characteristics.
Examples include:
	Age
	Gender
	Marital status
	Income
	Nationality / ethnic group
	Level of education
	Religion
	Occupation

Question 7

Psychographic segmentation

Answer 7

Psychographic segmentation involves grouping people according to their lifestyle, personality, values and interests.
Examples include:
 Health conscious
 Hobbies / activities they participate in
 Being environmentally aware
 Time poor

Question 8

Behavioural segmentation

Answer 8

Behavioural segmentation involves grouping people according to the knowledge of, attitudes towards and use of products.
Examples include:
	Purchase occasion
	Benefits sought
	Usage rate

Question 9

linking segmentation to strategies

Answer 9

What is important to note is that the type of segmentation then determines the types of marketing strategies that the business will adopt or the nature of the message.

Question 10

positioning

Answer 10

Positioning refers to how consumers view the business’s products compared to those of competitors

A business wants to create an image of their products in the eyes or minds of the consumers.

If your product was a person, what sort of person would it be…?

Positioning refers to how consumers view the business’s products compared to those of competitors

A business wants to create an image of their products in the eyes or minds of the consumers.

If your product was a person, what sort of person would it be…?

Positioning is vitally important to pre-determine because it acts as the platform on which the marketing mix is built. All of a business’ marketing strategies should be consistent with product positioning and reinforce this image of the product in the minds of consumers.

Question 11

brand positioning

Answer 11

In large scale businesses such as Kellogg’s, Coca-Cola or Toyota, rather than solely focusing on a single product, businesses can also position their brand too.

Question 12

product/service differentiation

Answer 12

As part of their marketing strategy businesses attempt to differentiate their business and products from that of competitors

Businesses will make their products different to that of competitors and THEN “market” these differences in order to attract customers and generate sales.

Question 13

Some examples of points of differentiation include:

Answer 13

Level of convenience
Environment, ethical and social concerns
The level of customer service
More / better product features
Better value for money

Question 14

positioning vs differentiation

Answer 14

Positioning is about determining the place the product should occupy in the market.
WHEREAS…
Differentiation is the process by which the business makes the product stand out.

Question 15

the connection between them all

Answer 15

Market segmentation, positioning and differentiation are all connected.

A business will:

1. Decide who their target market is…
2. Then decide how they will communicate about their product
3. Then make their product distinguishable and appealing