Session 3 Flashcards
Analysis = 3Cs
Strategy = STP
Tacttic= 4P
What is segmentation
identify variables that allow you to break the market in different groups
What is targeting
Evaluate the attractiveness of the segment and choose a segment to market to
What is positioning
orient your actions to meet the need of your target segment
What is a market
people/organizations with needs/wants with ability/desire to buy
What is market segment
Subgroup of people or org that have
1. similar needs
2. will respond similarly to marketing actions
What is market segmentation
Process of dividing market in similar, meaningful, identifiable groups
What is undifferentiated/mass marketing
marketing to entire market the same way.
Goal: reach widest audience possible
Advantage: saves resources because you only have to manage one product
disadvantage: not all products truly have mass appeal
What is differentiated/segmented marketing?
Separate offerings for separate target markets
goal: increase sales in each target market
Advantages: create strong market presence
Disadvantage: can be expensive/challenging to succeed in multiple target markets
What is concentrated/niche marketing
focus on only small target market
goal: establish a comp. advantage amongst this minimum viable audience
advantages: saves resources - good strategy for smaller companies
disadvantages: vulnerable to changes in demand amongst the niche market
Why segment?
more clear definition of whos ur customers and what they want.
clarify marketing objectives
Improve resource allocation
segment small enough to serve - large enough to be profitable
How to segment
know your market segment
Aim to be the best for the particular market segment you serve (deliver value better than competitors)
5 steps to segment / target
- establish strategy&objectives
- group buyers into segments
3.evaluate segment attractiveness, target market size - select target segment
- take marketing actions to reach target segment
What goes into grouping buyers into segment
understand the benefits that the customers seek
develop prototypical customer profiles based on those benefits
find observable segmentation bases (geography, demographics, psychographics, behaviors) that discriminate among the benefit segments.
what is geographic
country, province, city
what is demographics
age, gender, income
what is psychographics
personality, lifestyle, attitudes
what is behavioral
observed behaviors like prior use
What are the criteria for choosing a desirable target segment
size, growth, cost of reaching them, competitive position
Step five of taking marketing action
orient your marketing actions to reach your target market
4ps. product= are you selling what they want.
Price= Is the price right for your target
Promotion= do advertisements click with them
Place= is your product sold where they shop
What are the observable segmentation bases
Geographic, demographic, psychographic, behavioral
