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COMM 223 > session 5: segmentation, targeting, and positioning > Flashcards

session 5: segmentation, targeting, and positioning Flashcards

1
Q

what is segmentation

A

dividing the total market into segments

based on needs, traits, or behaviours

might require separate marketing strategies or mixes

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2
Q

what is targeting

A

the process of evaluating each market segment’s attractiveness

selecting either a segment, or various segments to enter

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3
Q

what is differentiation

A

being different than what the rest of the market offers to generate greater customer value

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4
Q

what is product positioning

A

position your product in the mind of customers in a positive way

they Gotta think of you constantly

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5
Q

how do you create value for targeted customers

A

with the following:

segmentation

positioning

targeting

differentiation

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6
Q

is there a single way to do segmentation?

A

nah boy

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7
Q

what are the key bases for segmentation?

A

Geographic

Demographic

Psychographic

Behavioural

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8
Q

what is geographic segmentation (what does it involve)

A

Global regions

Countries

Region of country

Provinces

Cities

Neighbourhoods

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9
Q

what is the most popular base for segmenting customer groups?

why?

A

demographic segmentation

Easier to measure than most other types of variables

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10
Q

how so you do demographic segmentation

what are the aspects studied

A

Age and Life-Cycle

Gender

Household Income

Ethnic or Cultural Group

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11
Q

what is psychographics segmentation

A

Social class

Lifestyle

Personality characteristics

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12
Q

what is behavioral segmentation?

A

Dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product

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13
Q

what are the types of segments in behavioral segmentation?

A

Occasion-based purchases like Halloween or Christmas

Benefits sought:
Different segments desire different benefits from products
e.g. dirt bike vs city bike

User status:
Non-users, ex-users, potential users, first-time users, regular users

Usage rate:
Light, medium, heavy

Loyalty status: Divide into groups by degree of loyalty. e.g. Apple fan boys

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14
Q

what is multiple segmentation

A

Start with a single base and then expand to other bases

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15
Q

why should you use combined segmentation bases?

A

to identify better-defined target groups

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16
Q

do consumer and business markets use many if the same variables for segmentation, or are they completely different?

A

Consumer and business markets use many of the same variables for segmentation

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17
Q

what are the additional bases of segmentation that businesses use?

A

Operating characteristics

Purchasing approaches

Situational factors

Personal characteristics

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18
Q

how do you segment international markets?

A

Geographic location

Economic factors

Political and legal factors

Cultural factors

Intermarket Segmentation (cross- market segmentation)

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19
Q

Intermarket Segmentation (cross-market segmentation)

A

Segmenting consumers who have similar needs and buying behaviour even though they are located in different countries

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20
Q

what are the requirements for effective segmentation?

A

Measurable

Accessible

Substantial

Differentiable

Actionable

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21
Q

what does it mean for a market segment to be measurable?

A

the size

purchasing power

profile of the segment

can all be measured

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22
Q

what does it mean for a market segment to be accessible?

A

the segment can be effectively reached and served

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23
Q

what does it mean for a market segment to be substantial?

A

the segment is large and profitable enough to serve

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24
Q

what does it mean for a market segment to be differentiable?

A

the segments are distinguishable

they respond differently to different marketing programs

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25
Q

what does it mean for a market segment to be actionable?

A

effective marketing programs can be designed for attracting and serving the segment

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26
Q

In evaluating different market segments, marketers must look at which three factors?

A

Segment size and growth

Segment must match company objectives and resources

Segment structural attractiveness

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27
Q

how do you evaluate a segment’s size and growth?

A

collect and analyze data on segment sales, growth rates, and expected profitability

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28
Q

which target market segment should you choose when you think about size and growth?

A

Choose target market segment by figuring out which ones have the “right” size and growth characteristics

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29
Q

which target market segment should you choose when you think about size and growth?

A

Choose target market segment by figuring out which ones have the “right” size and growth characteristics

Small company can’t handle large growth/competitive segment

30
Q

what does it mean for a segment to match company objectives and resources

A

your company should not change its target market if the other markets do not match the same objectives

if economy is not doing well and cheaper cars are more popular, BMW will still not make a low-end car

31
Q

what are the 5 forces that affect long-run segment attractiveness?

A
  1. Competitors
  2. New Entrants
  3. Substitute products
  4. Power of buyers
  5. Power of suppliers
32
Q

what are the characteristics of undifferentiated marketing (mass marketing)

A

Firm ignores market segment differences/opportunities and targets the whole market with one offer

Focuses on what is common in the needs of consumers rather than on what is different

The company designs a product and a marketing program that will appeal to the largest number of buyers

33
Q

what are the characteristics of segmented marketing (differentiated marketing)

A

Firm targets several market segments and designs separate offers for each

ex: Toyota produces different brands of cars, from Yaris to Lexus, each targeting a different group of car buyers

34
Q

what are the characteristics of concentrated marketing (niche marketing)

A

Firm goes after a large share of one or a few segments or niches

35
Q

what are the characteristics of micro marketing

A

Firm tailors products and marketing programs to the needs of specific segments

includes local and individual marketing

36
Q

what is local marketing?

A

tailoring brands and promotions to the needs and wants of a small group of people

they live in the same city or neighbourhood or who shop at the same store

37
Q

what is individual marketing?

A

tailoring products and marketing programs to the needs and preferences of individual customers

mass customization

38
Q

convenience stores practice which type of marketing?

A

micro marketing

in this branch, they do local marketing

stock their shelves with the items they know the people in their neighbourhood are likely to want

39
Q

what are the factors in choosing a targeting strategy

A

company resources

product variability

Product’s life-cycle stage

Market variability

Competitors’ marketing strategies

40
Q

which type of marketing makes the most sense when company resources are limited?

A

concentrated marketing makes the most sense

41
Q

which type of marketing is better suited for uniform products such as grapefruit or steel?

A

undifferentiated marketing

42
Q

Products that can vary in design, such as cameras and cars, are more suited to which types of marketing?

A

differentiation or concentration marketing

43
Q

In the mature stage of the product life cycle, which type of marketing makes more sense to stick out of the crowd?

A

differentiated marketing

44
Q

If buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts, which type of marketing is the most appropriate?

A

undifferentiated marketing

45
Q

if competitors use differentiated or concentrated marketing,, which type of marketing should definitely not be used?

A

undifferentiated marketing

46
Q

when competitors use undifferentiated marketing, which type of marketing can competitors use to gain an advantage?

A

differentiated or concentrated marketing

focusing on the needs of buyers in specific segments

47
Q

what are the impacts of social responsible marketing?

why?

A

Socially responsible marketing serves the interests of the company and consumers

Social responsibility trumps profitability if marketing efforts are seen as exploitative or irresponsible

48
Q

what is, the majority of the time, a product’s positioning based on?

A

on the product’s brand name

49
Q

what do a differentiation and positioning strategy involve?

A
  1. Identifying differentiating competitive advantages
  2. Selecting competitive advantage(s) on which to create position
  3. Developing a value proposition and positioning strategy
50
Q
  1. Identifying differentiating competitive advantages
A

Understand customer needs better than competitors, then deliver more value

Points of differentiation can occur anywhere in the entire customer experience

51
Q

what defines the product in the customer experience?

A

Features

performance

style

design

52
Q

what defines services in the customer experience?

A

Expedient

convenient

careful delivery

53
Q

what defines channels in the customer experience?

A

Coverage

expertise

performance

54
Q

what defines people in the customer experience?

A

Well trained employees

culture

morale

55
Q

what defines image in the customer experience?

A

convey distinctive benefits and positioning

56
Q
  1. Selecting competitive advantage(s) on which to create position
A

Can be one unique selling proposition (USP)

(e.g. head and shoulders, gets rid of dandruff)

can be multiple differences

57
Q

which are the differences that should be promoted as competitive advantage

A

Important

Distinctive

Superior

Communicable

Preemptive

Affordable

Profitable

58
Q

what does it mean for a competitive difference to be important?

A

the difference delivers a highly valued benefit to target buyers

59
Q

what does it mean for a competitive difference to be distinctive?

A

Competitors do not offer the difference

60
Q

what does it mean for a competitive difference to be superior?

A

The difference is superior to other ways that customers might obtain the same benefit

61
Q

what does it mean for a competitive difference to be communicable?

A

The difference is communicable and visible to buyers

62
Q

what does it mean for a competitive difference to be preemptive?

A

Competitors cannot easily copy the difference

63
Q

what does it mean for a competitive difference to be affordable?

A

Buyers can afford to pay for the difference

64
Q

what does it mean for a competitive difference to be profitable?

A

The company can introduce the difference profitably

65
Q
  1. the value proposition
A

the Value proposition is the full mix of benefits on which the brand is differentiated and positioned

the square thingy which represents the possible value propositions

66
Q

what are the possible value propositions

A

More for more

More for same

More for less

Same for less

Less for much less

67
Q

which value proposition is harder to do in the long run?

A

more for less

68
Q

what is an example of same for less proposition?

A

Walmart vs department store

69
Q

what is the less for much less value proposition?

A

Fewer benefits for a much lower price

70
Q

true or nah

Marketing-mix efforts (4 Ps) must support the positioning strategy

A

truuuue

71
Q

sometimes, position must be monitored, and sometimes adapted, but to what?

A

consumer needs

values

attitudes

competitive fluctuations

COMM 223 (13 decks)

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