Segmentation, Targeting & Positioning Flashcards
Steps used to Select Customers to Serve
Segmentation & Targeting
Steps used to decide on a Value Proposition
Differentiation & Positioning
Targeting
Select which segment(s) to serve.
What does Positioning do?
Build and improve brand equity to chosen target (4ps).
What is Differentiation?
Differentiate the market offering to create superior customer value.
Homogeneous Market
A large proportion of customers have similar needs or wants.
Heterogeneous Market
Made up of individuals or organisations with diverse needs for products within a specific product class.
Consumer Market
Purchasers who intend to consume or benefit from the product and not to make profit.
Business Market
Individuals or groups that purchase a specific product for resale, direct use in producing other products or use in general daily operations.
Market Segmentation
Dividing a total heterogeneous market into homogeneous markets in order to design a marketing mix that matches the different needs.
Benefits of Market Segmentation
Improved customer retention, growth opportunities, Profitability, Effective communications, Segment dominance.
What does Demographic Segmentation do?
Often influences purchasing behaviour and preferences.
Geographic Segmentation
Putting people in postcode areas and small neighbourhoods based on lifestyle and demographic information.
Psychographic Segmentaion
Segments based on motives, lifestyle or personality traits.
Define Behavioural Segmentation
Segments based on consumer knowledge, attitudes, uses or responses to a product.
Benefits of Psychographic Segmentation
Deeper connection - personal and emotional level.
Differentiation - personalised marketing messages.
When using Behavioural Segmentation…
it must be Identifiable, Recognisable and Accessible.
Factors Affecting International Market Segmentation?
Geographic Location; Economic Factors; Political and Legal Factors; Cultural Factors.
Must be taken into account when doing Business Market Segmentation
Geographic Location; Product Use; Type of Organisation; Customer Base Size.
To be useful, Market Segments must be…
Measurable, Accessible, Substantial, Differentiable, Actionable.
Undifferentiated Marketing
A firm ignores market segment differences and goes after the whole market with one product.
Differentiated Marketing
A firm decides to target several market segments with seperate offers fro each.
Niche Marketing
A frim goes after a large share of one or a few segments or niches.
Mircromarketing
Tailoring products and market programs to need and wants of specific individuals and local customer segments.
3 Steps of Differentiation and Positioning
- Identifying advantages.
- Choosing the right advantages.
- Selecting a positioning strategy.
Competitive Advantage
Any advantage over competitors gained by offering greater customer value.
What to look for when choosing a Competitive Advantage
Importance; Distictive; Superior; Communicable; Pre-emptive; Profitable.
5 Winning Value Propositions
- More for more
- More for the same
- The same for less
- Less for much less
- More for less
Position Statement
A statement that summarises company or brand positioning.
Product Repositioning
May be required to strengthen market share and profitability.