Segmenting, Targeting & Positioning

Question 1

What is segmenting?

Answer 1

When potential customers are divided into different groups

For example: demographic, geographic, income, behavioural and psychographic

Question 2

What is targeting?

Answer 2

Which segment/s to target? Most profitable?

(potential Niche or mass market)

Question 3

What is the positioning?

Answer 3

-What is the business competitive advantage?
-customer perception?
-how could the business deploy the extended marketing mix?

Question 4

Benefits of effective market segmentation?

Answer 4

-focus recourses on parts of a market where the business
-helps with new product development
-helps make marketing mix more effective e.g better targeting of promotion

Question 5

Drawbacks of segmentation?

Answer 5

-may be imprecise, data may be unavailable or unreliable (not up to date)
-may struggle to reach customer in segment
-markets are increasingly dynamics, so are segments

Question 6

Position advantages?

Answer 6

-customers choose products based on the value proposition
-providing superior value than the completion is a source of competitive advantage

Question 7

Examples of positioning strategies?

Answer 7

-offer more for less
-offer more for more
-offer more for the same
-offer less for much less