Unit 5- Segmenting, Targeting & Positioning Flashcards
what is segmentation
identify and describe market segments
process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics.
what is target marketing strategy
dividing the total market into different segments based on customer characteristics, selecting one or more segments, and developing offerings to meet those segments needs.
what is targeting?
evaluate segments and decide which to go after
Marketers evaluate the attractiveness of each potential segment n decide in which they will invest resources to try to turn them into customers
(which customers will we serve)
what is positioning
design a good or service to meet a segments needs and develop a marketing mix that will create a competitive advantage in the minds of the selected target market
(how will we serve them?
what are the segmentation variables?
demographic
geography
psychographic
behavioral
what is target market?
set of buyers who share common needs or characteristics that the company decides to serve
what should a viable target segment be?
homogeneous measurable substantial actionable accessible
what is homogenous (viable target segment)
members with similar product needs/wants
what is measurable (viable target)
in size and purchasing power
what is substantial (viable target)
large enough to be profitable
what is actionable (viable target)
staff/production capacity need to be big enough to serve the segments
what is accessible (viable target)
reachable by marketing communications
what is a undifferentiated targeting strategy?
(mass marketing) appealing to a broad spectrum of people
what is differentiated targeting
target several market segments and designs separate offers for each
what is concentrated targeting (niche mk)
offering one or more products to a single segment
what is customized marketing?
tailoring specific products to individual customers
what is mass customization
modifying a basic good or service to meet the needs of an individual
what are perceptual maps?
a picture of where products/brands are located in consumers minds
when segmenting by demographics?
age gender (male vs female) family structure (DINK-dual income w no kids) (DINKWAD-dual income w no kids with a dog) (DEWKS- dually employed with kids) income race n ethnicity
when segmenting by geography?
world region or country country region city or metro size density (urban, suburban, rural) climate
what is geocoding?
offline: “selective binding” technology allows to place specific ads in a subscribers copy based on their geographic target
online: customizes web ad so people who log on in different places see ad banners for local businesses (microtargeting)
what is segmenting by pyschographics?
use of psychological, sociological and anthropological factors to construct market segments
(social class, lifestyle, personality)
what is VALS
values, attitudes, and lifestyle
what were the VALS results for my own test?
experiencer (primary)– motivated by self expression (“cool stuff”)
striver (secondary) trendy and fun loving (concerned about the opinions and approval of others)
how many types of VALS are there?
8 types (thinkers, believers, achievers, strivers, experiencers, makers, innovators, survivors)
what is the primary motivation?
ideals, achievement or self expression
what are the high vs low resources:
energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity.
what is segmenting by behavior ?
segments consumers based on how they act towar, feel about, or use a product
(occasions, user status, usage rate)
what is the 80/20 rule
20 percent of purchasers account for 80 percent of a products sales
what is geodemography?
combines geography, demographics, and behavior and lifestyles ex PRIZM (divides the US consumer into different groups and segments)
what is mass marketing
selling the same product to all consumers
1.came first
2.evolved with mass production
3 a shotgun approach
what is targeted marketing
selecting a groups of consumers for marketing
- new phenomena
- rifle approach
what is one to one marketing
process that outlines the steps companies take to target their best customers, form close, personal relationships with them and give them what they want
what are benefits (behavior)
segmenting buyers by the benefits that they seek from the product
what is usage
segmenting buyers by the frequency that they use/buy products
what is application
segmenting buyers by the way in which they use products
what is proximity marketing
new technology firms are using to segment and target buyers geographically within a few hundred feet of their businesses using wireless technology
what is positioning
how consumers perceive a product relative to the competition
what is tagline
a catchphrase designed to sum up the essence of a product
what is repositioning
an effort to move a product to a different place in the minds of consumers
what segments are needed in B2B markets?
price-focused segment, quality/brand focused segment, service focused, partnership-focused
