Segmentation, Targeting, and Positioning - Chapter 6 Flashcards
What are the 5 Steps of the STP Process
- Strategy of objectives
- Segmentation bases
- Evaluate segment attractiveness
- Select target market
- Identify and develop positioning strategy
1-2: Segmentation
3-4: Targeting
5: Positioning
Geographic segmentation
Organizes customers into groups on the basis of where they live
Demographic segmentation
Groups consumers according to who they are using easily measured, objective characteristics such as age, gender, etc
Psychographics
How consumers describes themselves
Self-values
Goals for life; not just goals one wants to accomplish in a day
Self-concept
The image ppl have of themselves
Lifestyles
The third component of ppl’s psychographic makeup, are the ways we live
Behavioural segmentation
Consumers on the basis of why they buy, how often, and how they plan to use the products or services
Occasion segmentation
Consumers based on when they purchase or consume a product or service
Benefit segmentation
Consumers based on the benefits they derive from products/services
Loyalty segmentation
Strategy of investing in retention and loyalty initiatives to retain the firm’s most profitable customers
Usage rate
How often a person uses the product/service : occasional, light, regular or heavy
Geodemographic segmentation
The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics
Undifferentiated targeting strategy (mass marketing)
A marketing strategy a firm can use if the product/service is perceived to provide the same benefits to everyone, w no need to develop separate strategies for diff groups
Differentiated targeting strategy
A strategy through which a firm targets several market segments w a diff offering for each
Concentrated (or niche) targeting strategy
Marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s need
Micromarketing (one-to-one) segmentation
A form of segmentation that tailors a product/service to suit an individual customer’s wants or needs
Mass customization
The practice of interacting on a 1-on-1 basis w many ppl to create custom-made products or services
Positioning
The mental pic that ppl have abt a company and its products/services relative to competitive
Value proposition
Communicates the customer benefits to be received from a product/service and the reasons for wanting to buy it
Perceptual map
Displays, in 2 or more dimensions, the position of products or brands in the consumer’s mind
Ideal point
The position at which a particular market segment’s ideal product would lie on a perceptual map
Rebranding
A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis w changing market preferences
Self-concept is the same as
self - image
Why is it important that segments are distinct from 1 another
Too much overlap between segments means that the distinct marketing strategies are not necessary to meet segment members’ needs
VALS
A psychological tool developed by Strategic Business Insights that classifies consumers into eight segments: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors
What are the variables that are part of psychographic segmentation
Self-values
Self-concept
Lifestyles
Motives
Personality
What are part of the market segmentation approach?
Demographic
Behavioural
Geographic
Psychographic
