Segmentation, target marketing and positioning Flashcards
What is Market Segmentation
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes
What is Target Market
Consists of a set of buyers who share common needs or characteristics that the company decides to serve
What is Positioning
The place a product, brand or group of products occupies in consumers’ minds relative to competing offerings
Why target? (Hint the other 4 Ps)
Personalization
Predictive
Prioritization
Performance
What are the Different Segmentations
Demographic
Behavioral
Psychographic
Geographical
What is Demographic typically comprised of?
Gender
Age
Ethnicity
Income
Family Size
Occupation
Education
What is Behavioral typically comprised of?
- Purchasing Behavior
- Usage Rates (Heavy Users, Medium Users, Light Users)
- Occasion/Timing (Universal(holidays) Recurring-personal occasions(birthday), Rare-personal occasions, time)
- Benefits Sought
- Customer Loyalty
What is Psychographic typically comprised of?
- Lifestyle: How do you spend leisure time/what do you like to do
- Vales, Interests: What is important to you?
- Attitudes/Opinions: How do you see the world
What is Geographic typically comprised of?
Country, region, state, or even neighborhood
Why segmentation
It allows firms to gain a better understanding of who their target customer really is
Requirements for Effective segmentation
Measurable
Accessible
Substantial
Differentiable
Actionable
How do you achieve Target Marketing
Evaluate Market Segments:
- Segment size and growth
- Company objectives and resources
- Segment Structural attractiveness
- Level of competition
- Substitute products
- Power of Buyers
- Powerful suppliers
- New Entrants
What is Positioning?
- The place the product occupies in consumers’ minds relative to competing products
- Typically defined by consumers on the basis of important attributes
- Involves implanting the band’s unique benefits and differentiation in the customer’s mind
What are the six possible positioning strategies?
Attributes
Price/quality
Use Or Application
Product User
Competitor
Emotion
What are Position statement
What:The only [category]
How:that [differentiation characteristic]
Who:for [customer]
Where:in [geographic location]
Why:who [need state]
When:during [underlying trend]
