Segmentation, Targeting and Positioning/ Chapter 7

Question 1

why does segmentation, positioning and targeting matter? ***

Answer 1

STP is based on a number of ideas:

• markets are fragmented, and consumers are increasingly looking for individual customised rather than the standardised products
• role of marketing is to offer choice by making available different offerings to different groups of buyers
• the more specific the needs of the buyer the greater the opportunity to create value

Question 2

What is STP step by step?

Answer 2

1. market segmentation - identify needs and segment the market
2. target market- evaluate attractiveness of each segment and select target segments
3. marketing positioning- identify advantage for each segment and formulate marketing mix
4. marketing planning - develop marketing plan for each segment

Question 3

define market segment?

Answer 3

a group of individuals, groups or organisations sharing one or more characteristics that cause them to have relatively similar product needs and buying characteristics

Question 4

what are the 4 categories of segmentation variables?

Answer 4

• demographic- age, gender, lifecycle - disposable income
  location - people with similar social, economic, lifestyle characteristics tend to be close in neighbourhoods.
• behavioural
• psychographic (measures of lifestyle, social groups and aspirations)

Question 5

what characteristics does a segmentation require to be effective?

Answer 5

• measurable
• accessible
• stable
• useful

Question 6

how do you segment into customer profiles?

Answer 6

cultural - religion, race, national identity
social - family influences, social rules
personal - occupation, age, status, personality, lifestyle

Question 7

what is perceptual mapping?

Answer 7

a tool used to visually depict consumer perceptions and prioritising of brands and their perceived attributes.

Question 8

how do you select a target market?

Answer 8

1. understand the requirements and characteristics of individuals/ organisations
2. divide the market, according to those requirements and characteristics into segments
3. choose market segments to target

Question 9

what is positioning?

Answer 9

the choice of 1. target market- where we want to compete 2. differential advantage - how we wish to compete

Question 10

what is re-positioning?

Answer 10

involves changing target market, the differential advantage or both

Question 11

what kinds of re-positioning is there?

Answer 11

-product re-positioning- changing customers tastes/ poor sale performance
-image repositioning- change imagine -product and target market the same
product repositioning- product changed- target market stays the same
intangible repositioning- targeting different segment
- tangible repositioning- both product and target market change