Segmentation, Targeting, And Positioning

Question 1

What stage does this STP come in?

Answer 1

The third stage

Question 2

What does STP consist of?

Answer 2

Market Segmentation, Target market selection, and product positioning

Question 3

What are the steps for segmentation?

Answer 3

1. Identifying bases for the segmentation
2. Developing profiles of these segments

Question 4

What are the steps for Target Market selection?

Answer 4

1. Measuring each segments attractiveness
2. Selecting the target segments

Question 5

What are the steps to product positioning?

Answer 5

1. Developing positioning for each target segment
2. Developing marketing mix for each target market

Question 6

What is Market segmentation?

Answer 6

Dividing the market into groups with listing needs, characteristics, or behavior who may require separate products or separate marketing mixes

Question 7

What are the different ways of dividing the consumer market?

Answer 7

Geographic, Psychographic, Demographic, Behavioral,
Combined

Question 8

What are characteristics of geographic and demographic?

Answer 8

Geographic: Nations regions, cities, population density, climate, location specific

Demographic: Age, gender, family life cycle, income, occupation, education, religion, ethnicity

Question 9

What are characteristics of psychographic and behavioral?

Answer 9

Psychographic: Lifestyle, Personality

Behavioral: Occasions, benefits, usage rate, loyalty

Question 10

What does it mean when they are combined such as geodemographic

Answer 10

When two or more of the needs are combined. (Geodemographic Needs: Refers to the understanding of consumer needs based on geographic location and demographic factors (e.g., age, income, education). It helps businesses tailor their products, services, and marketing strategies to specific areas and customer groups.)

Question 11

What are the requirements for effective segmentation?

Answer 11

Measurable, Accessible, Substantial, Differentiable, Actionable

Question 12

Describe each of the requirements for effective segmentation?

Answer 12

Measurable
– Size, purchasing power, and profile of segment
* Accessible
– Can be reached and served
* Substantial
– Large and profitable enough to serve
* Differentiable
– Respond differently
* Actionable
– Effective programs can be developed

Question 13

What are the components of evaluating target markets?

Answer 13

-Segment size and growth
-Structural attractiveness(Direct and substitute competition/Power of buyers and suppliers)
-Company objectives and resources

Question 14

What is undifferentiated marketing?

Answer 14

A marketing strategy where a company targets the entire market with a single offer, ignoring segment differences. The goal is to appeal to a broad audience by offering a product that satisfies basic needs for most people.

Question 15

What are the benefits of undifferentiated marketing?What are the disadvantages as well?

Answer 15

Benefits: Low production costs and marketing costs

Disadvantages: Products with no competitive advantage and vulnerable to competition

Question 16

What is differentiated marketing?

Answer 16

It is where companies use different marketing strategies for each unique segment.

Question 17

What are the benefits and disadvantages of differentiated marketing?

Answer 17

Advantages: High potential profit and market share

Disadvantages: High costs, and cannibalization(Occurs when a company’s different products or brands target separate market segments but end up competing with each other, reducing sales of one product due to the introduction of another. This can happen when the products are too similar or overlap in appeal)

Question 18

What is concentrated marketing?

Answer 18

Where a company focuses on just one segment.

Question 19

What are the advantages and disadvantages with concentrated marketing?

Answer 19

Advantages: Concentrated resources, Suitable for smaller firms, and easier to position

Disadvantages: Too narrow of a brand image, and vulnerable to changes in the consumers test and competition.

Question 20

What is micro marketing?

Answer 20

A marketing strategy that targets very specific segments or even individual customers. It focuses on tailoring products, services, and marketing efforts to meet the unique needs of small, well-defined groups or individuals, often using local or personalized approaches.

Question 21

What are the advantages and disadvantages of micro marketing?

Answer 21

Advantages: Higher customer satisfaction and personal relationship building.

Disadvantages: High cost and advanced tech is needed.

Question 22

What type of marketing is best when a company has limited resources?

Answer 22

Concentrated marketing

Question 23

What type of marketing is best when the product variability within the company contains uniform products(Steel, raw material)?

Answer 23

Undifferentiated marketing

Question 24

What is the best type of marketing when a company has products that vary in design?

Answer 24

Differentiated/concentrated marketing

Question 25

What is the best type of marketing for a products intro phase?

Answer 25

Undifferentiated marketing

Question 26

What is the best type of marketing when a product is in it’s mature phase?

Answer 26

Differentiated marketing

Question 27

What is the best type of marketing when there is limited market variability?

Answer 27

Undifferentiated marketing

Question 28

What is the definition of positioning?

Answer 28

The place a product lives in the consumers mind relative to competition.

Question 29

What does this involve and how is it done?

Answer 29

Involves the brands unique benefit and differentiation in the customers mind. Positioning maps are commonly used.

Question 30

What are the steps to this?

Answer 30

Identifying competitive advantage, choosing the right advantage, and communicating/delivering the chosen position.

Question 31

What are the positioning strategies?

Answer 31

Positioning by price/quality, attribute/benefits, users, usage situation, competitors , and product class.

Question 32

What are the two way of positioning with competition?

Answer 32

Against(A strategy where a company differentiates itself from competitors by highlighting its unique strengths, features, or benefits. This approach aims to create a distinct image in the minds of consumers, emphasizing why the company’s product or service is a better choice compared to alternatives.)

Away(Placing Away from Competition: Focuses on carving out a unique market space, avoiding direct competition by offering something distinct or specialized that competitors do not provide.)