Segmentation, Targeting and Positioning Flashcards
What are the three steps in the target market process ?
Segmentation
Targeting
Positioning
What is segmentation?
The process of grouping customers in markets with similar requirements and buying characteristics. It divides the market into smaller slices.
What is consumer behaviour?
The study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants
What are the different types of demographics?
Age
Gender
Income and social class
Family life cycle
Culture
Place of residence
Geo-demography
Geo-targeting
Generational marketing
What are the different age groups?
Mature
Baby boomers
Generation X
Generation Y
Generation Z
Generation Alpha
What are Psychographics?
Uses psychological and anthropological factors to categorise customers
What are the different groups based off that psychographics divides groups with?
Age
Lifestyle cycle
Occupation
Wealth
Personality
Values
Lifestyle
Self-concept
What is included within a effective segmentation criteria?
Measurable
Sustainable
Accessible
Differentiable
Actionable
What are the four steps in a positioning decision?
Step 1: Analyse competitors positions
Step 2: Offer a good/service with a competitive advantage
Step 3: Finalise the marketing mix
Step 4: Evaluate responses and modify as needed
What are the questions that need to be considered to understand the competitive structure of a market?
How do customers view the brand?
Which competitive brands do customer perceive to be their closest competitors?
What market offering and company attributes are most responsible for these perceived differences?
What are the rules to setting organisational or SBU objectives?
Should be direct
Should be SMART
May be directed towards financial, operational or customer-based criteria
Translate what the organisation is aiming to achieve
