Topic 2: Segmentation, Targeting, Differentiation and Positioning Flashcards

1
Q

Market segmentation

A

involves analysing a market with the aim of directing marketing focus towards smaller segments of buyers with distinct characteristics or behaviours that might require tailored marketing strategies or mixes.

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2
Q

Market targeting (or targeting)

A

consists of evaluating each market segment’s attractiveness and selecting one or more market segments to enter.

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3
Q

Differentiation

A

involves differentiating the firm’s market offering from that offered by competitors, to create superior customer value

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4
Q

Positioning

A

consists of arranging for a market offering to occupy a clear, distinctive and desirable place in the minds of target consumers relative to competing products.

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5
Q

four important segmentation topics

A

1) segmenting consumer markets,
(2) segmenting business markets,
(3) segmenting international markets and (4) requirements for effective segmentation.

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6
Q

main variables that might be used in segmenting consumer markets

A

geographic, demographic, psychographic and behavioural variables

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7
Q

Geographic segmentation

A

calls for dividing the market into different geographical units, such as nations, regions, states, local government areas, cities or even neighbourhoods

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8
Q

Demographic segmentation

A

divides the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality

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9
Q

Behavioural segmentation

A

divides buyers into segments based on their knowledge, attitudes, uses or responses to a product

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10
Q

Psychographic segmentation

A

divides buyers into different segments based on social class, lifestyle or personality characteristics

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11
Q

market segments must be

A

•Measurable: The size, purchasing power and profiles of the segments can be measured.

•Accessible: The market segments can be effectively reached and served.

•Substantial: The market segments are large or profitable enough to serve.

•Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

•Actionable: Effective programs can be designed for attracting and serving the segments.

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12
Q

In evaluating different market segments, a firm must look at three factors

A

(1) segment size and growth,
(2) segment structural attractiveness, and
(3) company objectives and resources

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13
Q

target market

A

consists of a set of buyers who share common needs or characteristics that the company decides to serve

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14
Q

Market targeting can be carried out at several different levels. Figure 6.2 shows that companies can target

A

very broadly (undifferentiated marketing),
very narrowly (micromarketing) or
somewhere in between (differentiated or concentrated marketing).

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15
Q

Undifferentiated marketing

A

firm might decide to ignore market segment differences and target the whole market with one offer

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16
Q

differentiated marketing (or segmented marketing)

A

strategy, a firm decides to target several market segments and designs separate offers for each

17
Q

concentrated marketing (or niche marketing)

A

instead of going after a small share of a large market, the firm goes after a large share of one or a few smaller segments or niches

18
Q

Micromarketing

A

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, micromarketers see the individual in every customer. Micromarketing includes local marketing and individual marketing.

19
Q

Local marketing

A

involves tailoring brands and promotions to the needs and wants of local customer groups – cities, neighbourhoods and even specific stores

20
Q

individual marketing

A

tailoring products and marketing programs to the needs and preferences of individual customers. Individual marketing has also been labelled one-to-one marketing, mass customisation and markets-of-one marketing.

21
Q

Choosing a targeting strategy

A

Which strategy is best depends on company resources

22
Q

Socially responsible target marketing

A

The biggest issues usually involve the targeting of vulnerable or disadvantaged consumers with controversial or potentially harmful products.
For example, over the years, marketers in a wide range of industries – from cereal and toys to fast food and fashion – have been heavily criticised for their marketing efforts directed towards children.

23
Q

value proposition

A

how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments

24
Q

product’s position

A

is the way the product is defined by consumers on important attributes – that is, the place the product occupies in consumers’ minds relative to competing products

25
Q

product’s position

A

is the complex set of perceptions, impressions and feelings that consumers have for the product compared with competing products

26
Q

perceptual positioning maps

A

which show consumer perceptions of their brands versus competing products on important buying dimensions

27
Q

The differentiation and positioning task consists of three steps

A

(1) identifying a set of differentiating competitive advantages upon which to build a position;
(2) choosing the right competitive advantages; and
(3) selecting an overall positioning strategy

28
Q

Identifying possible value differences and competitive advantages

A

An alert company can find ways to differentiate itself at every customer contact point. In what specific ways can a company differentiate itself or its market offer? It can differentiate along the lines of product, services, channels, people or image.

29
Q

Choosing the right competitive advantages

A

Which differences to promote

Not all brand differences are meaningful or worthwhile; not every difference makes a good differentiator. Each difference has the potential to create company costs as well as customer benefits. A difference is worth establishing to the extent that it satisfies the following criteria:
•Important:
•Distinctive:
•Superior:
•Communicable: The difference is communicable and visible to buyers.
•Pre-emptive: Competitors cannot easily copy the difference.
•Affordable: Buyers can afford to pay for the difference.
•Profitable: The company can introduce the difference profitably.

30
Q

Value proposition

A

the full mix of benefits upon which the brand is differentiated and positioned.

31
Q

positioning statement

A

A statement that summarises company or brand positioning
The statement should follow the form: To (target segment and need) our (brand) is (concept) that (point of difference).21 For example: ‘For every athlete, Nike’s experience and expertise ensures that you have the perfect shoe for your sport.’