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Marketing > Segmentation, Targeting and Positioning L4 > Flashcards

Segmentation, Targeting and Positioning L4 Flashcards

1
Q

What is segmentation?

A

Method by which whole markets are subdivided into different segments.

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2
Q

What is targeting?

A

Method by which particular segments are selected.

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3
Q

What is positioning?

A

Method by which a brand becomes most attractive to selected segments.

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4
Q

How does segmenting take place?

A

Identify, analyse and describe market segments.

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5
Q

How does targeting take place?

A

Evaluate each and decide to go after.

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6
Q

How does positioning take place?

A

Design a product/service to meet a segment’s needs; develop offer and marketing mix that will create a competitive advantage in the minds of the selected target market

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7
Q

What is the marketing concept?

A

Target market –> Customer Needs –> Integrated Marketing –> Profits Through Customer Satisfaction

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8
Q

What is a market?

A
  • It is created when producers and consumers meet, for the purposes of exchange, online or offline
  • Contains people (or institutions) with sufficient purchasing power (actual or credit), authority and willingness to buy
  • Grey, parallel, black, illegal etc
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9
Q

What happens if you define your market wrong?

A

If you define your market wrong, your segmentation, targeting and positioning strategies and subsequently your offerings might be irrelevant to your customers/customer segments

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10
Q

What is a market segment?

A

A group of buyers with similar needs and wants who respond in a similar way to marketing actions

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11
Q

What is a target market?

A

The segments of the market you will try to reach.

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12
Q

Why segment the market?

A
  • Not everyone wants the same thing
  • Buyers have increasingly varied and sophisticated needs, expectations etc
  • Helps design and focus marketing programmes
  • Helps determine resource allocation
  • Allows matching demand and supply
  • Increases the efficiency and effectiveness of companies
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13
Q

What segmentation rationales exist?

A
  • Range of different consumer needs
  • Range of purchase behaviour
  • Range of places/channels/types of availability
  • Range of price elasticity
  • Limited competencies and capabilities in company
  • Range of competitive offerings
    Linking to needs and wants to focus marketing activities.
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14
Q

What is the segmentation process?

A
  1. Identify the broad market of interest
  2. Identify key buyer characteristics
  3. Cluster buyer types: identify truly differentiating dimensions, name/label the different segments
  4. Find out why they behave the way they do
  5. Make rough estimates of size, potential and cost of each segment
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15
Q

What ways exist to segment the consumer markets?

A
  • Profile (general) - demographic, socio-economic, geographic
  • Psychographic (domain) - lifestyle, personality, influencers and role models
  • Behavioural (specific) - benefits sought, purchase occasion, purchase behaviour, usage, perceptions and beliefs
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16
Q

What are the 5Ws and 1H in terms of understanding customer segments?

A

How do they use the product?

Who is involved in buying and consuming?

What are their choice criteria?

When do they buy/use the product?

Why do they buy/use the product?

Where do they buy?

17
Q

What is perceptual brand mapping?

A
  • Visual representation of market, from consumers’ perspective
  • According to criteria valued by consumers
  • How consumers see their product vs competition
  • Identifies gaps in the market
  • Can show gap between how consumers see brand and how company sees it
18
Q

Why is segmentation beneficial?

A
  • It is necessary to understand complexities in the market regarding existing needs and wants
  • Segmentation prepares the ground for targeting sub segments of the market with specific offerings that are tailored to service their specific needs/wants
19
Q

What levels of segmentation exist?

A

Mass marketing - no segmentation

Market segmentation - significant chunk

Niche marketing - small, more profitable chunk

Micro marketing - tiny, highly specialised bit

20
Q

What variables might be used for segmentation?

A
  • Geographic
  • Socio demographic
  • Customer value
  • Psychographic (lifestyle, attitudes)
  • Consumer behaviour (e.g purchase behaviour, benefit)
21
Q

What are the targeting strategies?

A
  • Undifferentiated (mass) marketing: one product to entire market
  • Differentiated
  • Niche
  • One to one
22
Q

What is a differentiated marketing targeting strategy?

A
  • For different segments of the market
  • Different products/or marketing mixes
  • Very common targeting strategy: pursued by most large FMCG companies, global car makers
  • Organic vs acquisition
  • Not an option for all companies
23
Q

What is a niche marketing targeting strategy?

A
  • Market to one segment or a few segments - not the entire marketing
  • Maximise resource effectiveness: financial, HR, skills, knowledge, competencies
  • Particular attractiveness to one segment
24
Q

What is a one to one marketing strategy?

A
  • Literally a different product/marketing mix for individual customers
  • Become possible because of advances in IT
  • Or price premium
25
Q

What are some benefits of targeting?

A

High price customers only: optimises profit by maximising margin

Specific needs customers: minimise competition by satisfying needs better

Restrict distribution by area or type: erect barrier to new entrants; limit liability

26
Q

What are some problems of targeting?

A

Expense - need to spend money to define your market

Excludes customers - can reduce business potential

Can increase vulnerability: paradigms can shift away from your sector

27
Q

What is positioning?

A

The act of designing the company’s offering so that it occupies a meaningful and distinct position in the target consumer’s mind

Effective positioning is the act of linking products and services to the solutions that customers seek

28
Q

What are the keys to successful positioning?

A
  • Clarity
  • Consistency
  • Credibility
  • Competitiveness
29
Q

What are examples of differentiators?

A
  • Rational benefits
  • Emotional benefits
  • Social benefits
  • Structural benefits
30
Q

What are the position related strategic options?

A
  • Market leader: create market
  • Market challenger: broaden market
  • Market follower: exploit market
  • Market niche player: segment market

Marketing (11 decks)

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