Segmentation, Targeting & Positioning

Question 1

Steps used to Select Customers to Serve

Answer 1

Segmentation & Targeting

Question 2

Steps used to decide on a Value Proposition

Answer 2

Differentiation & Positioning

Question 3

Targeting

Answer 3

Select which segment(s) to serve.

Question 4

What does Positioning do?

Answer 4

Build and improve brand equity to chosen target (4ps).

Question 5

What is Differentiation?

Answer 5

Differentiate the market offering to create superior customer value.

Question 6

Homogeneous Market

Answer 6

A large proportion of customers have similar needs or wants.

Question 7

Heterogeneous Market

Answer 7

Made up of individuals or organisations with diverse needs for products within a specific product class.

Question 8

Consumer Market

Answer 8

Purchasers who intend to consume or benefit from the product and not to make profit.

Question 9

Business Market

Answer 9

Individuals or groups that purchase a specific product for resale, direct use in producing other products or use in general daily operations.

Question 10

Market Segmentation

Answer 10

Dividing a total heterogeneous market into homogeneous markets in order to design a marketing mix that matches the different needs.

Question 11

Benefits of Market Segmentation

Answer 11

Improved customer retention, growth opportunities, Profitability, Effective communications, Segment dominance.

Question 12

What does Demographic Segmentation do?

Answer 12

Often influences purchasing behaviour and preferences.

Question 13

Geographic Segmentation

Answer 13

Putting people in postcode areas and small neighbourhoods based on lifestyle and demographic information.

Question 14

Psychographic Segmentaion

Answer 14

Segments based on motives, lifestyle or personality traits.

Question 15

Define Behavioural Segmentation

Answer 15

Segments based on consumer knowledge, attitudes, uses or responses to a product.

Question 16

Benefits of Psychographic Segmentation

Answer 16

Deeper connection - personal and emotional level.

Differentiation - personalised marketing messages.

Question 17

When using Behavioural Segmentation…

Answer 17

it must be Identifiable, Recognisable and Accessible.

Question 18

Factors Affecting International Market Segmentation?

Answer 18

Geographic Location; Economic Factors; Political and Legal Factors; Cultural Factors.

Question 19

Must be taken into account when doing Business Market Segmentation

Answer 19

Geographic Location; Product Use; Type of Organisation; Customer Base Size.

Question 20

To be useful, Market Segments must be…

Answer 20

Measurable, Accessible, Substantial, Differentiable, Actionable.

Question 21

Undifferentiated Marketing

Answer 21

A firm ignores market segment differences and goes after the whole market with one product.

Question 22

Differentiated Marketing

Answer 22

A firm decides to target several market segments with seperate offers fro each.

Question 23

Niche Marketing

Answer 23

A frim goes after a large share of one or a few segments or niches.

Question 24

Mircromarketing

Answer 24

Tailoring products and market programs to need and wants of specific individuals and local customer segments.

Question 25

3 Steps of Differentiation and Positioning

Answer 25

1. Identifying advantages. 2. Choosing the right advantages. 3. Selecting a positioning strategy.

Question 26

Competitive Advantage

Answer 26

Any advantage over competitors gained by offering greater customer value.

Question 27

What to look for when choosing a Competitive Advantage

Answer 27

Importance; Distictive; Superior; Communicable; Pre-emptive; Profitable.

Question 28

5 Winning Value Propositions

Answer 28

1. More for more 2. More for the same 3. The same for less 4. Less for much less 5. More for less

Question 29

Position Statement

Answer 29

A statement that summarises company or brand positioning.

Question 30

Product Repositioning

Answer 30

May be required to strengthen market share and profitability.