Segmentation, targeting& positioning

Question 1

Why use segmentation?

Answer 1

Tailor a marketing mix based upon similarities
Understand segments opportunities and threats

Question 2

The process of market segmentation and target marketing

Answer 2

Understand requirements and characteristics of individuals/organisations
Divide the market into segments
Choose market segment to target

Question 3

Dividing segments can be made on one or several of the following categories

Answer 3

Behavioural - Purchase occation, benifits sought, usage, purchase behavior
Psychographic - Lifestyle, personallity
Profile - demographic, socioeconomic, geographic

Question 4

Requirements for effective segmentations

Answer 4

Substantiality -sufficiently large or profitable
Measurability - can be measured
Accessibility - can be reached and served
Actionability - offers can be designed

Question 5

Segmenting organisational markets can be done on two levels

Answer 5

Macro-segmentation - size, industry, location
Micro-segmentation - Need, choice criteria, Decision-making process

Question 6

Target marketing has two steps

Answer 6

1. Decide which segment(s) to serve
2. Design a marketing strategy for each segment

Question 7

Target marketing strategies

Answer 7

• Undifferentiated marketing – One offer to serve everyone
• Differentiated marketing – Different offers for different segments
• Customized marketing – Different offers for different customers

Question 8

Positioning means

Answer 8

The objective is to create and maintain a distinctive position in the market for a company and its products

Question 9

Perceptual mapping has four steps

Answer 9

• Identify a set of competing brands
• Identify important attributes that customers use when choosing between brands
• Conduct quantitative marketing research where customers score each brand on key attributes
• Plot perceptual maps

Question 10

When making a perceptual map there are two categories of factors to consider

Answer 10

• Objective -The real difference compared with other offers / value propositions
• Symbolic side -Experienced side of offer / value propositions, the feeling

Question 11

Four Cs for successfull positioning

Answer 11

• Clarity – Positioning idea must be clear in terms of target market and differential advantage
• Consistency – Stay consistent in messages to the market
• Credibility – The differential advantage chosen must be credible in the minds
  of the target customer
• Competitiveness – The differential advantage should have a competitive
  edge. Provide something sought for, but not delivered yet.