Segmentation, Targeting, and Positioning Flashcards
The target marketing strategy
what marketers use to divide the market into segments
Heterogeneous Markets
Consumers seek different products and will respond differently to marketing strategies
Segmentation
the process of dividing a larger market into smaller pieces basedon one or more meaningful, shared characteristics
Benefits of Segmentation
Enhances understanding of customers to build loyalty
It enables you to position your products closely to the target segment.
Enables you to identify new product and service opportunities
Segmentation Variables
Demographic, Psychographic, Geographic, Behavioral
Demographic Segmentation
Adds measurable and descriptive information like age, gender, ethnicity, income, social-class, family life cycle, religion
Family Life Cycle
A means of characterizingconsumers within a family structureon the basis ofdifferent stages through which people pass as they grow older.
Geographic Segmentation
tailoring different offerings to specific geographic areas because people’s preferences often vary depending on where they live.
micromarketing
to identify and target very small geographic segment
Psychographic Segmentation
Using psychological and lifestyle factors to construct market segments.
Behavioral Segmentation
Based on how consumers feel about the product
- Benefits sought
- Usage rate
- Usage staus
- Usage occasions
Behavioral vs Psychographic
Benefits and feelings vs lifetyle choices
Dangers of Segmentation
Segmenting too niche or over fragmenting the segment
Segment to generally
Targeting
Evaluate segments and decide which ones to go after
Concentrated strategy
Focused on one or more products to a single segment (Senior travel, young travel, solo travel etc)
Differentiated strategy
Developing one or more products for each of several distinct customer groups (Estee Lauder)
Customized strategy
tailoring specific products and messages about them to individual consumers (Doctor, haircut)
Mass Marketing
On a product that will appeal to a broad spectrum of people
Positioning
Developing a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer
Keys to Positioning
Brand personality and creating a distinguishing image
Step 1 of Positioning
Analyse competitor’s position
Step 2 of Positioning
Define your competitive advantage
Step 3 of Positioning
Finalise marketing mix
Step 4 of Positioning
Evaluate and modify
Perceptual mapping
A technique to visually describe where brands are located consumers’ minds relative to competing brands
