Segmentation, Targeting, and Positioning (Lecture #5) Flashcards Preview

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Flashcards in Segmentation, Targeting, and Positioning (Lecture #5) Deck (26)
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1
Q

Describe the Ford vs. GM production models

A
  • Ford: offered only black, a mass marketing and production strategy
  • GM: offered different colours, styles, was customizable
  • –a differentiated strategy
2
Q

What are the three C’s in the three C’s model?

A

Customer, company, competitors

3
Q

def. segmentation

A

identify variables that allow you to break up the market into different groups of people

4
Q

def. targeting

A

evaluating the attractiveness of the segments, and choose a segment to market to

5
Q

What is the STP framework?

A

Segementation, targeting, positioning

6
Q

def. positioning

A

oreint your marketing actions to meet the needs of that target segment

7
Q

def. market

A

people or orgs with needs or wants, and the ability and willingness to buy

8
Q

def. market segment

A

subgroup of people or orgs that (1) have similar product needs (2) will respond similarly to a marketing action

9
Q

def. market segmentation

A

the process of dividing a market into meaningful, relatively similar, identifiable segments or groups

10
Q

Describe undifferentiated/mass marketing

A
  • marketing to the entire market the same way
  • goal: reach the widest audience possible
  • advantages: saves resources (only managing 1 product)
  • disadvantages: not all products truly have mass appeal
11
Q

describe differentiated/segmented marketing

A
  • separate offerings for separate target markets
  • goal: increase sales in each target market
  • advantages: create strong market presence
  • disadvantages: can be expensive and challenging to succeed in multiple target markets (resources are spread)
12
Q

describe concentrated/ niche marketing

A
  • focus on only a small target market
  • goal: establish a competitive advantage amongst this “minimum viable audience”
  • advantages: saves resources–especially a good strategy for smaller companies
  • disadvantages: vulnerable to changes in demand amongst the niche market
13
Q

Why segment?

A
  • understand who customers are and what they want/need
  • clarify marketing objectives
  • improve resource allocation
14
Q

what is the ‘challenge’ of segmentation?

A

we need to find a segment small enough to serve, and large enough to be profitable

15
Q

What are the two general priniciples when considering how to segment? (also describe what to do to achieve those)

A
  1. know your market segment
    - –do research, they know what they want
    - –deliver what they need, not necessarily what you want to make
  2. aim to be the best for the particular market segment you serve
    - -be the best at something, good enough at the rest
    - -deliver value to your customers better than your competitiors
16
Q

What are the 5 general steps to segment and target?

A
  1. Group buyers into segments
  2. Group products into categories
  3. make a market-product grid
  4. select your target markets
  5. take marketing actions to reach targets
17
Q

describe grouping buyers into segments

A
  • understand the benefits that the customers seek
  • partition market, and develop prototypical customer profiles based on those benefits
  • find observable variables (e.g. demographics, geography, psychographic, behavioural measures) that discriminate among the benefit segments
18
Q

What does making a market-product grid?

A

lets you estimate the size of your market

19
Q

What is the criteria for deciding target markets?

A
  • size
  • growth
  • cost of reaching them
  • compatibility/ease of entry
  • competitive position
20
Q

describe the last step of the segmenting and targeting process (take marketing actions to reach targets) (in terms of 4 P’s)

A
  • orient marketing actions towards reaching target markets
  • Product: are you selling what they want/need?
  • Price: is the price right for your target?
  • promotion: do your advertisements ‘click’ with them?
  • Place: is your product sold where they shop?
21
Q

What is positioning?

A
  • orienting your marketing actions to meet the needs of the target segment
  • all the marketer’s efforts to have a product occupy a unique and favourable “territory of the mind” in the target customer
22
Q

Describe positioning statements: what do they do? what questions do you consider?

A
  • outlines the essence of their strategy
  • who is our customer, what are their needs? (target segment)
  • what other options are out there? Who are we comparing ourselves to? (frame of reference)
  • what is unique about our offer? (point of difference)
23
Q

What is the structure of a positioning statement?

A

“Our [product/brand] is for [target segment defined or key benefits sought]. Unlike other products within [frame of reference], our brand offers [point of difference]”

24
Q

If your first positioning strategy is unsuccessful, what should you do?

A

re-position, ie target a new market

25
Q

def. positioning/perceptual map

A

tool for creating a visual representation of how people perceive different products in terms of key attributes

26
Q

What are the steps to create a positioning/perceptual map?

A
  1. Identify important attributes for a product class
  2. Discover how potential customers rate competing products on these attributes
  3. plot these data on an X-Y graph