Segmentation, Targeting and Positioning

Question 1

segmentation

Answer 1

identifying meaningfully different groups of customers

Question 2

targeting

Answer 2

selecting which segments to serve

Question 3

positioning

Answer 3

implementing chosen image and appeal to chosen segment (includes product, price, promotion, distribution)

Question 4

Segmentation

Answer 4

identifying meaningfully different groups of customers

Question 5

Why Segment?

Answer 5

you can’t be all things to all people

Question 6

Michael Dell strategy for selling newspapers

Answer 6

people buying newspaper subscriptions were people either recently married or had bought a new home, so he focused on them as his target market

Question 7

Segmentation- Variables

Answer 7

descriptors, such as age, gender, income, price sensitivity, brand loyalty, geographic location, usage rate and involvement

Question 8

Segmentation- Levels

Answer 8

different categories within each variable, including age group and geographic location

Question 9

Segmentation- Segments

Answer 9

crossing some of the combinations, including usage rate with brand loyalty

Question 10

criteria for effective segments

Answer 10

identifiable, reachable, responsive, profitable, substantial

Question 11

segmentation bases (groups)

Answer 11

geographic, demographic, psychographic, benefit desired, behaviorial

Question 12

“Free Style Cruising” at Norwegian Cruise Lines

Answer 12

making travel more flexible to appeal to families (aka do what you want when you want)

Question 13

demographic

Answer 13

individuals who share statistical characteristics (age, occupation, level of education, marital status)

Question 14

geolocation tag based methods

Answer 14

installing software on phones to identify most frequented locations

Question 15

traditional segments

Answer 15

sharpened focus, but limiting insight into specific purchase patterns and lifestyles

Question 16

hyper-focused segments

Answer 16

integrate behavioral data to allow a much more precise view of segments and their purchasing patterns

Question 17

individualized pricing

Answer 17

adjusts pricing based on past behaviors of a customer (aka airline upgrades and Amazon)

Question 18

targeting

Answer 18

selecting which segments to serve (focus narrows competition but heightens demand)

Question 19

targeting: undifferentiated approach

Answer 19

all consumers are treated the same

Question 20

targeting: concentrated approach

Answer 20

one firm chooses to focus on one of several segments that exist while leaving the rest to other competitors

Question 21

targeting: differentiated approach

Answer 21

make different offerings to each of the different segments

Question 22

positioning

Answer 22

implementing chosen image and appeal to chosen segment (including product, price, promotion, distribution)

Question 23

targeting process

Answer 23

IDENTIFY either individuals or groups with characteristics and ensure REACHABILITY then finding different ways of reaching them (direct mail lists, speciality media, search behavior)

Question 24

targeting: data enhancement

Answer 24

increase amount of information available about each individual

Question 25

targeting: merge-purge process

Answer 25

increase the number of individuals in the database

Question 26

perceptual mapping

Answer 26

dimensions of interest are selected > customers are asked to rate it > identifies what customers believe rather than what's true

Question 27

unique value proposition

Answer 27

a product not currently on the market with good value, quality, prestige, and customer value

Question 28

points of parity

Answer 28

how product matches up with other brands in terms of quality, functionality, or customer benefit

Question 29

points of difference

Answer 29

benefits important to customers that competitors cannot match