Marketing Chapter 9-Segmentation, Targeting, and Positioning – Flashcards
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Market
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People or organizations with needs or wants and the ability and willingness to buy.
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Market Segment
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A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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Market Segmentation
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The process of dividing a market into meaningful, relatively similar, identifiable segments or groups
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Segmentation, Targeting, Positioning Process
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1. Strategy or Objectives (segmentation) 2.Segmentation Methods (segmentation) 3.Evaluate Segment Attractiveness (targeting) 4. Select Target Market (targeting) 5. identify and develop positioning strategy (positioning)
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Step 1: Establish Overall Strategy or Objectives
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SWOT Analysis Derived from mission and current state
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Step 2: Segmentation Methods
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*Geographic- continent *Demographic-age, gender,income *Psychographic-lifestyle, self-concept, self values *Benefits- convenience, economy, prestige *Beavioral-occasion, loyalty
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Geographic segmentation
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organizes customers into groups on the basis of where they live
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Demographic segmentation (most common segmentation)
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groups consumers according to easily measured, objective characteristics such as age, gender, income, and education.
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Psychographic Segmentation
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allows people to describe themselves using characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices.
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Lifestyle Seegmentation
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divides people into groups according to how time is spent, the importance of things around them, beliefs, and socioeconomic characteristics such as income and education.
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Value and Lifestyle Survey (VALS)
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a psychographic tool that classifies consumers into eight categories based on their answers to a questionnaire.
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Geodemographic Segmentation
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Segmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic, and lifestyle segmentation
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Benefit Segmentation
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The process of grouping customers into market segments according to the benefits they seek from the product
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Behavioral segmentation
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divides customers into groups based on how they use the product or service.
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Step 3: Evaluate Segment Attractiveness
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Marketers first must determine whether the segment is worth pursuing, using several descriptive criteria: Is the segment identifiable, substantial, reachable, responsive, and profitable?
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Step 4: Selecting a Target Market
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A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
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Targeting Strategies
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1. Differentiated 2. Undifferentiatied or mass marketing 3.concentrated 4.micromarketing or one-to-one
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Undifferentiated TargetingStrategy
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A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
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Advantages of Undifferentiated Targeting Strategy
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Potential savings on production and marketing costs
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Disadvantages of Undifferentiated Targeting Strategy
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*Unimaginative product offerings *Company more susceptible to competition
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Concentrated Targeting Strategy
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A strategy used to select one segment of a market for targeting marketing efforts.
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Niche
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one segment of a market
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Advantages of concentrated Targeting Strategy
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*Concentration of resources *Meets narrowly defined segment *Small firms can compete *Strong positioning
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Disadvantages of concentrated Targeting Strategy
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*Segments too small, or changing *Large competitors may market to niche segment
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Multisegment/differentiated Targeting Strategy
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A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
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Advantages of Multisegment Targeting Strategy
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*greater financial success *economies or scale
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Disadvantages of Multisegment Targeting Strategy
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*high costs *cannibalization
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One-to-one marketing
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1. Individualized 2. Information-Intensive 3. Long Term 4.Personalized
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One-to-One Marketing Goals
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1. cost reduction 2. customer retention 3. increased revenue 4. customer loyalty
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One-to-One Marketing Trends
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1. One-size-fits all marketing no longer effective 2. Direct and personal marketing will grow to meet needs of busy consumers. 3. Consumers will be loyal to companies that have earned—and reinforced—their loyalty. 4.Mass-media approaches will decline as technology allows better customer tracking
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Market Positioning
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The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with other products.
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Step 5: Develop Positioning Strategy
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Value, Salient Attributes, Symbol, Competition The objective is to play up how the brand being marketed provides the desired benefits better than do those of competitors.
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Product Differentiation
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A positioning strategy that some firms use to distinguish their products from those of competitors. Can be real or perceived
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Perceptual Maps
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A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds.
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Repositioning
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Changing consumers' perceptions of a brand in relation to competing brands
