Segmentation, targeting & positioning

Question 1

Homogeneous Markets

Answer 1

Markets in which customers have similar product needs, wants and sought benefits.

Question 2

Segmentation

Answer 2

The process of dividing a market into distinct groups with distinct needs, who might require separate products or marketing mixes.

Question 3

Benefits of segmentation

Answer 3

Customer analysis
Competition analysis
Resource allocation
Strategic market planning

Question 4

Different ways to segment

Answer 4

Geographic
Demographic
Psychological
Behavioural

Question 5

Geographic segmentation

Answer 5

Country or continent
Country region
City
Population density

Question 6

Demographic segmentation

Answer 6

Age 
Generation
Family size
Family lifecycle
Income
Occupation
Religion
Education

Question 7

Disadvantage to segmentation

Answer 7

People with the same demographic profile can exhibit different characteristics

Question 8

Psychological segmentation

Answer 8

Social class
Lifestyle
Personality
Value - compassionate, materialistic etc.

Question 9

Behavioural segmentation

Answer 9

Occasions 
Benefit - quality, service
User rates
Loyalty status 
Attitudes towards products

Question 10

Geodemographics

Answer 10

• combines many approaches to segmentation
• based on postcode analysis
• where we live is correlated with many aspects of buying behaviour

Question 11

Criteria for segmentation effectiveness

Answer 11

Measurable
Substantial
Accessible
Differentiate 
Actionable

Question 12

Levels of segmentation

Answer 12

Undifferentiated
Differentiated
Concentrated

Question 13

Undifferentiated

Answer 13

Least demanding approach 
Assumes the whole market is one homogenous unit with no significance between individuals 
Wide appeal 
Low cost
Possible economies of scale

Question 14

Undifferentiated

Answer 14

Market divides into segments
Each segment has a marketing mix
Tailored offer to each segment
Able to provide individual satisfaction
More risky over more than one segment

Question 15

Concentrated

Answer 15

Focus on a single segment
Specialised approach
Niche marketing concentration of resources in one segment makes for a strategically defendable position against generalists

Question 16

Evaluation of market segments

Answer 16

• market segments need to be evaluated and ranked for possible targeting
• evaluations is typically based on…
  Size of segment
  Growth prospects
  Profitability
  Competitive pressure

Question 17

The purpose of market planning

Answer 17

The overall purpose of marketing and its principal focus is the identification and creation of competitive advantage.

Question 18

How does planning help?

Answer 18

Avoids uncoordinated actions, lack of focus, lack of match between strategies and tactics.

Question 19

Types of marketing planning

Answer 19

- strategic plans
Typically for 3-5 year period
- tactical plans
Typical for the year ahead
- contingency plans
An alternative plan if assumptions prove to be false

Question 20

Market planning process

Answer 20

1- corporate objectives
2- marketing audit
3- Swot analysis 
4- marketing objectives
5- marketing strategies
6- marketing programmes 
7- budgets 
8- control and evaluation

Question 21

Segmentation process

Answer 21

Segmentation -
Research into the best segment, looking at profiles and emerging markets
Targeting -
Decide on targeting strategy
Which and how many segments should be targeted 
Positioning -
Understand consumer perceptions
Position in the mind of the consumer
Design that marketing mix

Question 22

Hetrogeneous Markets

Answer 22

Markets in which all customers have different requirements