Segmentation Positioning and Target Marketing Flashcards
is a marketing
model that redefines whom you
market your products to, and
how. It makes your marketing
communications more focused,
relevant, and personalised for
your customers.
Segmentation, targeting, and
positioning (STP)
It entails discovering what
types of consumers with
diverse needs exist.
SEGMENTATION
Here all consumers are treated as
the same, with companies not making any specific efforts to satisfy particular groups.
Undifferentiated Strategy
Here a company chooses to focus,
specialize and target only one segment of the market while leaving other segments to competitors.
Concentrated Strategy
Here, a company is trying to sell to two or more specific market segments
consumers that are treated
in different ways.
Differentiated Strategy
is a marketing concept that
breaks down into segments of
the customer based on
similarities in taste, demand,
and preferences.
MARKET SEGMENTATION
Under this approach, the market is segregated into different segments according to similar nature of needs.
Needs based approach
are descriptive in nature and measurable in terms of customer characteristics (such as location, nationality, age, sex, and income) which can be used to update a segmentation exercise.
Profilers
Market segments are typically measured in
terms of sales value or volume or simply the number of customers within the segment.
Segment must be Measurable
refers to the fact that the market size, purchasing power and profiles of the segments needs to be measured.
Segment must be Measurable
When differentiating a market segment, it is
essential to reflect on how the group might be accessed. It is crucial to know, whether this falls within the strengths and abilities of the company’s marketing department.
Segment must be Accessible
It should be sufficiently large to have
enough spending power for the company to sustain itself. The targeted segment must be adequate in size so that a customized marketing mix could be fashioned and sustained.
Segment must be Substantial
A market segment that warrants action should have pratical value. This means the segment should have characteristics that provide supporting data for a marketing position or sales strategy.
Segment must be Actionable/Responsive
Ideally, a market segment must be internally homogeneous. differences between market segments
should be visible district. This is for the purpose of avoiding overlap in the implementation of campaigns and applications of products and marketing tools to them.
Segment must be Differentiable
pertains to
buyers who purchase goods and
services for consumption rather
than resale.
consumer market
characteristics of consumer
markets consist of product usage rates,
brand loyalty, user status or how long they
have been a customer, and even benefits
that consumers seek.
Behavioral
It divides the market in to light , mid-level,and heavy product users. Thus depending on their usage, the customers can be targeted
Usage Rate
are the most reliable customers who provide a
company with a volume of revenue, but also rely on the
company for services it provides.
Heavy users
make purchases during important
occasions, such as birthdays and anniversaries, to stay
connected to their brand.
Mid-level users
These are likely being one-off customers except
if the company makes an offer they cannot turn down.
Light users
FIVE LEVELS OF COSTUMER LOYALTY
- Applicant
- He comes and is interested in the products of the enterprise. (organization).
- First-time buyer
- He is a customer who knows about the products of the enterprise and buys them first time.
- Frequent buyer
- He is a customer who may be satisfied with products and buy them repeatedly.
- Promoter
- He is satisfied and loyal and wants to share his good experience with enterprise’s products with others.
- Loyal customer
- He is highly loyal customer who consistently maintains his relationship with the enterprise and he is a permanent user of enterprise’s products.
It divides the market into light, mid-level, and heavy product users. Thus depending on their usage, the customers can be targeted.
Usage Rate
It divides the market based on the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
Products Benefits
It divides the market into groups according to their degree of loyalty.
Brand Loyalty
It is a process of dividing a target market group into
sub groups, so that there would be specific communication channels and key message to a particular market segment.
BUSINESS MARKET SEGMENTATION
It is used to identify
business target markets
depending on where the
business are situated.
GEOGRAPHIC SEGMENTATION
BUSINESS TO BUSINESS
markets occasionally
decide to target possible
business costumers based on their size
SEGMENTATION BY SIZE
It may be used by markets
who are selling products with
a particular appeal in certain
industry segments.
SEGMENTATION BY INDUSTRY
Based on business need
allow markets to pinpoint
and connect with business
that span geographies, size
and industry.
BUSINESS NEEDS SEGMENTATION
It entails dividing a market into segments and the focusing all marketing efforts on one or a few key segments.
SELECTING TARGET MARKETS
A large marketing is an approach whereby a company selects the whole market as one big market who no individual segments.
UNDIFFERENTIATED TARGETING
It is an approach in which the company selects two or more segments to offer.
MULTIPLE SEGMENT TARGETING
Focusing on one or few
segments or niches in a
market.
CONTENTED TARGETING/ NICHE
It means tailoring the market programs and products to suit the needs and wants of specific individual.
MICROMARKETING
is the space a brand occupies in the brains of
customers.
Positioning
can be visualized and created in many ways. It can be resulting from the object attributes, competition, application, the types of consumers concerned, or the
distinctiveness of the product class
Positioning strategies
is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers.
Perceptual mapping or market mapping
highlights the key findings from a survey quickly with minimum hassle.
standard perceptual map
is used to present an overall analysis of the marketplace.
multi-dimensional scaled perceptual map
