WEEK 5

Question 1

What is Undifferentiated Marketing (Mass Marketing)

Answer 1

company marketing mix –> market

• Some advantages e.g. economies of scale
• Mass marketing rarely works though!

Question 2

What is Differentiated Marketing

Answer 2

A differentiated marketing strategy can be defined as a marketing strategy that allows you to target different business market segments with separate offerings. Because of this reason, the strategy is also called multi-segment marketing (it is normally done by large businesses)

Company marketing mix 1 –> Segment 1
Company marketing mix 2–> Segment 2
Company marketing mix 3 –> Segment 3

example of bumble (dates, friends, network)

Question 3

What is Concentrated Marketing (Niche Marketing)

Answer 3

the business of promoting and selling a product or service to a specialized segment of a market

(normally done by small businesses as its more cost efficent)

Question 4

What is market segmentation?

Answer 4

the process by which customers in markets with
some heterogeneity can be grouped into smaller,
more similar or homogeneous segments

Question 5

What is a market segment?

Answer 5

A group of individuals, groups, organisations that
share one or more similar characteristics which
make them have relatively similar product needs

Question 6

What are the Bases for Segmentation (according to Kolter)

Answer 6

1. Geographic - where customers are
2. Demographic - what customers are
3. Psychographic - how customers think
4. Behavioural - how customers behave

–> these bases gives us the Profile

Question 7

How do you segment consumer markets (what should you look at to segment them)

Answer 7

Behavioural (who, how, where and when)
Psychological (why and who)
Profile (who and where)

Question 8

What is the behavioural segment of consumer markets/criteria?

Answer 8

purchase/transaction
consumption/usage
media usage
technology usage

Question 9

What is the psychological segment of consumer markets/criteria?

Answer 9

lifestyle
personality
perceptions
attitudes
motives
benefits sought

Question 10

What is the profile segment of consumer markets/criteria?

Answer 10

demographic
socio-economic
Geographic

Question 11

What is demographic segmentation?

Answer 11

• Age
• Gender
• Race
• Socio economic ie
  income, occupation,
  social status
• Family structure & life cycle

Question 12

What are GEODEMOGRAPHICS

Answer 12

• Broadly infer people’s characteristics from type of neighbourhood in which they live
• clusters typologies for targeting
• Mosaic: 15 groups, 66 types (census, demographic, financial and housing data)

Question 13

What is Psychographic Segmentation

Answer 13

Lifestyle segmentation
* personality, lifestyle & socio economic status & social class

Categories
* Activities [hobbies, holidays]
* Interests [food, fashion]
* Opinions [politics, community]
* Demographics [life stage, education

Question 14

What is behavioural Segmentation

Answer 14

Segmentation of the market according to how people behave
* User status eg Kellogg’s Special K
* Benefits sought
* Usage rate
* Loyalty vs switchers!
* Use occasion eg crisps (pub / meal / snack)
* Buyer readiness

Question 15

PROFILING SEGMENTS

Answer 15

After segmenting the market – > develop segment profiles

What product are they likely to demand?
Where are they likely to live?
How much likely to have to spend?
Where and how likely to shop?
What media likely to watch / read?

Question 16

What should you ask yourself when deciding which segment to go for?

Answer 16

• Largest?
• Biggest growth / profitable?
• Least
  competition?
• Easy to access?
• Actionable or fits objectives
• Least risky?

Question 17

What is positioning?

Answer 17

• Designing brand image so that they occupy a meaningful and distinct competitive position in target customers’ minds

How?
* Physical attributes – brand functionality & capability (PRODUCT)
* Communication – how brand is communicated or how consumers perceive brand relative to competing brands
(PROMOTION).