Segmentation and Targeting Flashcards
Market Segmentation (Kotler, 1997)
The subdividing of a market into homogeneous subgroups of customers, each can be served with a distinct marketing mix
Competitive Positioning (Kotler, 1997)
The act of designing an offering/image so it occupies a meaningful and distinct position in the target customer’s mind
Differentiation Criteria (Kotler, 1997)
Important, distinctive, communicable, affordable and profitable
Positioning Errors (Kotler, 1997)
Under-positioning: Vague ideas about company/product
Over-positioning: Customers have too narrow an understanding
Confused positioning: Frequent changes, contradictory messaging
Doubtful positioning: Claims made not accepted
Advantages of Marketing Segmentation
Target market selection
Tailored marketing mix
Differentiation
Opportunities and threats
Three forms of segmentation
Profile, psychographic and behavioural
Demographic segmentation (Profile)
Gender, age, family lifecycle
Socio-economic segmentation (Profile)
Social class, terminal education age, income
Geographic segmentation (Profile)
Country, region, city, climate, population density
Lifestyle segmentation (Psychographic)
Group according to their activities, interactions with others and opinions
Personality segmentation (Psychographic)
Brand choice often a direct manifestation of personal value
Benefits sought segmentation (Behavioural)
Market seeks different benefits from a product
Purchase behaviour segmentation (Behavioural)
Purchase relative to launch or patterns of purchase (brand loyalty)
Purchase occasion segmentation (Behavioural)
Emergency, gift, self-purchasse
Usage (Behavioural)
Heavy, light, non-users
Perceptions, attitudes, beliefs and value (Behavioural)
e.g. rise of vegan and sustainable brands
Segmenting organisational markets - macro segmentation
Organisation size, industry, geographic location
Segmenting organisational markets - micro segmentation
Choice criteria, decision-making process, organisational innovativeness
Factors affecting segment attractiveness
Market factors, economic/tech, competitive, business environment
Undifferentiated marketing
Treating market as one whole, supplying one product or service to serve them all
Differentiated marketing
Offer a distinct product or service to each segment
Concentrated/focused marketing
Focus attention to one/few segments, leaving wider market to competitors
Customised marketing
Segments so precisely defined that products are offered to exactly meet the needs of each individual
Mass customisation
Customers’ growing interest in expressing individuality - modify good/service to meet the needs of individuals
Facilitated by developments in IT, big data and analytics
