Segmentation, Targeting and Positioning

Question 1

• What are the four major segmentation approaches?

Answer 1

o Geographic Segmentation: e.g. Markets, …
o Socio-Demographic Segmentation: e.g. global teenager market, income, status,…
o Psychographic Segmentation: e.g. attitudes, values, lifestyle, …
o Behavioural Segmentation: increased importancy in times of big data
Often a mix of different segmentation practices is applied

Question 2

• Why is behavioral segmentation increasing in importance?

Answer 2

o Because of the possibility to use data to predict future customer preferences

Question 3

• What is meant by consumer typologies?

Answer 3

o Euromonitor example: form consumer groups and analyze their spending habits

Question 4

• How does Netflix target its consumers (non-technical explanation)?

Answer 4

o Implementation of different algorithm to show the most preferred movies, series, …
 Continue watching ranker: do consumers intend to resume watching?
 Trending ranker: Identifies periodical and one-off trends/new content

Question 5

• How can “Big Data” improve targeting?

Answer 5

o Beauty or Horror of big data: has the ability to combine data from different sources to target the right customers with the right content (lack of labour force-data scientists)

Question 6

• Where is the connection between segmenting, targeting and positioning?

Answer 6

o Segment first, then select a target market and position your product accordingly

Question 7

• What are the three key elements of positioning?

Answer 7

o Building a frame: signals that can be achieved by using the brand
o Creating parity: conditions that needed to be met to be a credible player
o Differentiation: brand performance, brand imagery, consumer insights

Question 8

• What are common approaches to product differentiation?

Answer 8

?

Question 9

• What does Roland Berger mean by “Value Positioning”?

Answer 9

o Are there identical values worldwide? Conducted a survey and came to the following conclusion:
 19 consumer values which are shared around the world (Customized,clanning, vitality, carefree, new and cool, passion, tranquility, …)

Question 10

• How does positioning via experience marketing work?

Answer 10

o Example: If you buy a container (Commodity) of coffee the price will be really low. In a Nestle bag (Brand) it is quite more expensive. If you go to McDonalds it is even more expensive (Service). If you go to Starbucks you specify your order even more. You pay for the experience (smell, taste, store interior, …).
o 4E’s: Entertainment, Esthetics, Education, Escapist (example: all-inclusive hotel)