STP and Strategic Marketing Flashcards
1
Q
Segment
A
- A group of individuals sharing similar characteristics which lead them to have similar product/service needs
Needs and wants will vary- Make assumptions about similar groups, and dissimilar groups
- Split market into groups with similar characteristics- will want similar products and services
2
Q
Target Market
A
- A group for whom a firm creates an offering through Marketing Mix elements to specifically meet their needs and wants
- Blanket marketing/ mass marketing = hitting a lot of different segments
○ Different marketing mix (product, price, place promotion (process, people, physical evidence)
- Blanket marketing/ mass marketing = hitting a lot of different segments
3
Q
Positioning
A
- The place that product occupies in consumer minds relative to other competing products based on important (consumer- defined) attributes
- Positioning in the market comparatively to competitors
- Decide variables that are important in the market and positioning yourselves relative to your competitors
4
Q
Why segment a market?
A
- Grouping customers by key needs, wants and characteristics allows for more focused marketing strategies and tactics
- Better chances of success and meeting organisational objectives
- Prioritisation of marketing targets
- Effective use of marketing resources
5
Q
Bases of Segmentation
A
Bases of Segmentation Geographic Demographic Psychographic Behavioural (frequency of purchase, where etc.)
6
Q
- Geographic
A
- Divides people or products into groups based upon where they live ( region or nationality)
- Knowing where your customers live saves marketing time and money plus aids significantly in strategic planning
- Customers of products and services have national sub-national differences in their preferences
- Climate and physical environment are bases of differing needs and wants for some categories
Physical environment and climate can cause a difference
Examples
- Seasonal Goods e.g. winter wear
- national dress, consumption of food, makeup/ hair products
- Product / Service with variation in preferences by region / country
- Products or Services affected by climate
- Modes of transportation
- Pepsi and coke
Transported as a concentrate, mix with water + carbonate- different places in the world have different tastes
7
Q
- Demographic
A
- By gender
- By age
- By ethnicity
- (5) Socioeconomic
§ Socioeconomic group, income, age of terminal education
§ E.g. where someone lives (types of property)
Examples
Books, products etc.
8
Q
Psychographic
A
- Lifestyle
§ Health, food preferences (veggie, non-veggie)
§ Outdoor people or not
- Stage of life
9
Q
- Behavioural (frequency of purchase, where etc.)
A
- Purchase behaviour
- Purchase occasion
- Frequency of purchase
- Consumption patterns
10
Q
Benefit segmentation (Hayley, 60-70’s)
A
- Argues it’s more important as tells you why
- Haley argues that benefit segmentation is the ultimate basis as the others are descriptive, they tell you “who” or “what”, but not always “why”
- It is causal, others are ascriptive (i.e. they assume qualities and characteristics which fit with age, gender, life stage etc.
11
Q
Business Market Segmentation (Business to Business)
A
- Geographic
- Size (of firm)
- Industry
- Business Need (why you’re buying it)
12
Q
Targeted Segments
A
Must be: - Identifiable (must find data) - Viable (sufficient size) - Stable - Marketable and Controllable (Dibb and Simkin 1991)
13
Q
Targeting Strategies
A
- Concentrate on a single segment with one product/brand
- Offering one product/brand to a number of segments
- Target a different product/ brand at each of a number of segments.
14
Q
Positioning
A
- From a tactical view point, positioning represents the “sharp end” for marketers:
- the product’s image relative to its competitors in the consumer’s view (Dibb and Simkin 2016).- The challenge here is to translate the needs and wants of the targeted customers into a tangible mix of
- product,
- price,
- promotion,
- distribution and
- service levels with maximum appeal.
- You compared to your competitors, how customer perceive you relative to other firms
- position yourself for the segment you would like to target
- The challenge here is to translate the needs and wants of the targeted customers into a tangible mix of
15
Q
Determining Positioning Strategy
A
- Positions are described by variables and within parameters which are important to the customers and which essentially are selected by them.
- E.g.
§ Price may be the key in grocery shopping
§ Service level in selecting a hotel
§ Quality and reliability when purchasing an electrical appliance such as a washing machine
§ Value for money when choosing a family day out
