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19 Cards in this Set
- Front
- Back
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Market |
- Contains people or institutions with a sufficient purchasing power, authority, and willingness to buy - People who have the ability to purchase your product. Everyone who could potentially be a customer |
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Market Segment |
- A group of buyers > with similar needs and wants > who respond in a similar way to marketing actions |
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Target |
- The segments you want to try and reach in the market |
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Undifferentiated (Mass) Marketing |
e.g., Maccas is going to taste the same everywhere you go |
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Differentiated Marketing |
- We recognise there are different segments in the market. Same product but tailored for different segments in the market |
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Concentrated Marketing |
- You acknowledge the different markets, and target one of them e.g., Rolex doesn't have a low range watch. Their focus is on the wealthy |
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Micromarketing |
- Focus on the specific needs and wants to people. Specific to your needs |
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1. Segmenting The Market |
Buyer's have increasingly varied and sophisticated needs, expectations. New technology allows: - Customisation of the offer - Marketers to reach customers more efficiently and effectively Helps design and focus marketing programmes Helps determine resource allocation |
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2. Segmenting The Market |
To get people to engage in the product. New technology allows this to happen Find the groups who will buy your product and target that segment. In any financial crisis, marketing is the first thing to be cut |
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The Segmentation Process |
1. Identify the broad market of interest 2. Identify key buyer characteristics 3. Form loose "clusters" of buyer types 4. Identify truly differentiating dimensions 5. Name/Label the different segments 6. Find out WHY they behave the way they do 7. Make a rough estimate of the size, potential and cost of each segment 8. Select your target(s) |
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1. Common Segmentation Bases (B2C) |
> Geographic - Location of groups or targets - Is the simplest > Demographic - Age, gender, income, occupation, education, household, size, family lifecycle etc - Refers to anything you can measure |
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2. Common Segmentation Bases (B2C) |
> Psychographic - Needs, motives, values, lifestyles, attitudes, opinions, perceptions - What drives you, motivates you. Isn't physical, so difficult to measure > Behavioural - Benefits sought, usage rates, brand loyalty - Why/how you purchase things |
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Demographic & Geographic Bases |
- Type of firm - Size of firm - Profitability of firm - Security of firm - Location of firm |
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Behavioural Bases |
- Benefits and technical attributes sought - Service expectations - Vision of firm |
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Requirements for effective segments |
- Identifiable and Measurable - Adequate Size (to suit your firm) - Able to be reaches - Durable (are they going to change anytime soon?) - 'Fit' with the firm |
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Your 'Position' is... |
- Where your product fits in the mind of the consumer relative to competing offers > based on your source (s) of differentiation in the market - The way an offer is defined by buyers in terms of important attributes > physical, functional, perceptual, image etc. |
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To Develop your Market Position |
Need to know... - What position you want to own - Who your customers are and what they expect - Who your competitors are and how they are perceived relative to you - What position you have in the eyes of your customer base - What "makes the difference" to your customers |
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Ways to Position your Offer |
- By attribute - By benefit - On price/quality - By associating your offer with a specific type of use or application - By associating your offer with a type of user - By associating with a product or service class - Relative to your competitor - By country of origin |
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Position is so important because... |
- Distinguishes your offering from that of competitors - Your 'position' (as views by the customer) is central to their perceptions and choice decisions - All elements of the marketing programme can affect the position > therefore, a clear positioning strategy is needed to focus the development of your marketing programme |
