Week 7 - Market strategy. Segment / target / positoin

Question 1

What are the 3 mains steps in marketing strategy

Answer 1

Segmenting, targeting & positioning.

Question 2

Segmenting divides markets using distinct needs / characteristics / behaviours so a m/mix can be created to best suit their needs. List the 4 main approahces.

Answer 2

Geographic, demographic, behavioral, psychographic.

Question 3

For effective segmenting, characteristics must be MADAS:

Answer 3

Measurable
Accessible
Differentiable
Actionable
Substantial

Question 4

Targeting decides which segments to pursue. List the factors used to evaluate:

Answer 4

Size/growth
Structural attractiveness
Company resources
Company objectives

Question 5

Market coverage refers to the number of segments and how we’ll use the marketing mix to cover them. Explain the different strategies:

Answer 5

Mass marketing - one m/mix to whole market

Segmented marketing - different mm to different segments.

Niche Marketing - One or few segments, trying for large market share.

Micro Marketing - tailor the MM to individuals or small segments.

Question 6

Define Differentiation

Answer 6

Emphasising differneces to create competitive advantage.
Must be valuable to customer.
Can use 1 or more but don’t muddy message.

Question 7

Define Positioning (Value proposition)

Answer 7

The full benefits of a product in the mind of the consumer.

Communicated and delivered via the Marketing Mix

Question 8

A positioning statment summarises brand positioning. Recite the standard:

Answer 8

To (target segment) our (brand) is (concept) that (point of difference).

eg: To coffee drinkers nescafe is a sociable way to enjoy instant coffee.

Question 9

Why is positioning important?

Answer 9

Consumers have a vast array of choices.

How they picture a product is critical to their purchase decision.

All successful companies have effective positioning.