Segmentation and Targeting

Question 1

Market Segmentation (Kotler, 1997)

Answer 1

The subdividing of a market into homogeneous subgroups of customers, each can be served with a distinct marketing mix

Question 2

Competitive Positioning (Kotler, 1997)

Answer 2

The act of designing an offering/image so it occupies a meaningful and distinct position in the target customer’s mind

Question 3

Differentiation Criteria (Kotler, 1997)

Answer 3

Important, distinctive, communicable, affordable and profitable

Question 4

Positioning Errors (Kotler, 1997)

Answer 4

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

Question 5

Advantages of Marketing Segmentation

Answer 5

Target market selection
Tailored marketing mix
Differentiation
Opportunities and threats

Question 6

Three forms of segmentation

Answer 6

Profile, psychographic and behavioural

Question 7

Demographic segmentation (Profile)

Answer 7

Gender, age, family lifecycle

Question 8

Socio-economic segmentation (Profile)

Answer 8

Social class, terminal education age, income

Question 9

Geographic segmentation (Profile)

Answer 9

Country, region, city, climate, population density

Question 10

Lifestyle segmentation (Psychographic)

Answer 10

Group according to their activities, interactions with others and opinions

Question 11

Personality segmentation (Psychographic)

Answer 11

Brand choice often a direct manifestation of personal value

Question 12

Benefits sought segmentation (Behavioural)

Answer 12

Market seeks different benefits from a product

Question 13

Purchase behaviour segmentation (Behavioural)

Answer 13

Purchase relative to launch or patterns of purchase (brand loyalty)

Question 14

Purchase occasion segmentation (Behavioural)

Answer 14

Emergency, gift, self-purchasse

Question 15

Usage (Behavioural)

Answer 15

Heavy, light, non-users

Question 16

Perceptions, attitudes, beliefs and value (Behavioural)

Answer 16

e.g. rise of vegan and sustainable brands

Question 17

Segmenting organisational markets - macro segmentation

Answer 17

Organisation size, industry, geographic location

Question 18

Segmenting organisational markets - micro segmentation

Answer 18

Choice criteria, decision-making process, organisational innovativeness

Question 19

Factors affecting segment attractiveness

Answer 19

Market factors, economic/tech, competitive, business environment

Question 20

Undifferentiated marketing

Answer 20

Treating market as one whole, supplying one product or service to serve them all

Question 21

Differentiated marketing

Answer 21

Offer a distinct product or service to each segment

Question 22

Concentrated/focused marketing

Answer 22

Focus attention to one/few segments, leaving wider market to competitors

Question 23

Customised marketing

Answer 23

Segments so precisely defined that products are offered to exactly meet the needs of each individual

Question 24

Mass customisation

Answer 24

Customers’ growing interest in expressing individuality - modify good/service to meet the needs of individuals
Facilitated by developments in IT, big data and analytics