Topic 6 - Competitive Positioning Strategies

Question 1

What is market segmentation?

Answer 1

The process of dividing a market of potential customers into different groups based on different characteristics.

Question 2

Base variables can be used to segment the market. What are the four types of bases?

Answer 2

1. DEMOGRAPHIC
   • Basic characteristics of customers eg. Age, sex , occupation
2. GEOGRAPHIC
   • Basic location characteristics
   Eg. Urban, rural
3. BEHAVIOURAL
   • Used for consumer markets
   Eg. What people are buying, brand loyalty
4. PSYCHOGRAPHIC
   • Based on the psychology of consumers, their actual needs

Question 3

What are the targeting strategies?

Answer 3

• MASS MARKET
• MULTI SEGMENT
• SINGLE SEGMENT

Question 4

What are the two factors considered in marketing?

Answer 4

To evaluate different market segments the firm must look at…

Attractiveness Of Segment

Capability of organisation

Question 5

Target market example

Answer 5

TUI Group - Travel and Tourism Company

• Package Holidays Marketing
• Multi Segment (Different propositions)
• Luxury Couples, All Inclusive, Experience Etc…

Question 6

What is a positioning map?

Answer 6

A tool that is used by marketers to decide upon a competitive position.
An idea that everyone has a different perception of certain product.

Question 7

What is Bowman’s Strategy Clock?

Used For strategy positioning

Answer 7

A model used in marketing to analyse the competitive position of a company.

Based on two dimensions

• price
• perceived value
• 8 strategies
• If a company understands the 8 strategies it will ENABLE THEM TO ANALYSE & EVALUATE ITS CURRENT STRATEGY.