Segmentation, targeting and positioning Flashcards
What is the purpose of segmentation in marketing?
Segmentation helps organizations understand how to differentiate and position their products, which feeds into their branding strategy.
What are the four commonly referred bases of segmentation?
The four bases of segmentation are geographic, demographic, psychographic, and behavioral segmentation.
What is the advantage of geographic and demographic segmentation?
Geographic and demographic bases are generally the cheapest and easiest, as they often rely on publicly available information.
What is a persona in marketing?
Personas are fictional characters created to represent a specific user type, helping to bring the typical customer to life.
What factors are used to evaluate segment attractiveness?
Factors include market growth, segment profitability and stability, segment size, competitive intensity within the segment, and cyclical nature of the industry.
What does the DAMP criteria stand for?
DAMP stands for Differentiation, Accessibility, Measurability, and Profitability.
What is an undifferentiated marketing approach?
An undifferentiated approach treats the market as one mass market with one strategy, often used when there are few perceived differences between segments.
What is differentiated targeting?
Differentiated targeting involves targeting several attractive segments, each requiring a separate marketing strategy.
What is a concentrated marketing strategy?
A concentrated marketing strategy targets small, profitable, and homogeneous market segments that have been largely ignored by others.
What is a customized targeting strategy?
A customized targeting strategy treats each customer as a unique segment, often used in B2B markets and for professional services.
What is the importance of positioning in marketing?
Positioning is crucial as it defines how the brand is communicated and perceived relative to competitors, forming the foundation of customer relationships.
What is perceptual mapping?
Perceptual mapping is a visual representation of how brands are perceived according to key attributes, helping to understand current position and future strategy.
What are the four ways a product may be repositioned?
- Change tangible attributes and communicate to the same market. 2. Change communication to the original market. 3. Change target market and deliver the same product. 4. Change both product and target market.
What are the key characteristics of a good positioning strategy?
A good positioning strategy should be single-minded, meaningful, differentiating, important, sustainable, believable, and credible.
What is the final stage after defining positioning and value proposition?
The final stage is to develop a marketing mix for each target segment, including product, price, place, and promotion.
