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20 Cards in this Set
- Front
- Back
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Segmentation |
Process of dividing a varied and differing group of buyers into smaller groups, within which similar patterns of behaviour exists |
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Targeting |
Process of deciding how many of these ‘segments’ the organisation has the skills to serve. |
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Positioning |
The determination of the position the product or service will occupy in minds of customers, versus the competition |
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Market segmentation |
Process of dividing the market into distinct subgroups of customers with some characteristics in common and then selecting one or more subgroups for company action to be targeted with a unique business strategy |
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Different variables for segmenting customer markets |
Demographic: eg. Age, gender, race Geographic: population, city size, region Psychographic: personality, motive, lifestyle Behaviouristic: volume usage, brand loyalty etc |
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Organisational segmentation examples |
Back (Definition) |
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8 stage STP(segmentation, targeting, positioning) process |
1. Identify organisations position, capabilities and objectives - situation analysis 2. Identify segmentation variables and segment markets. 3. Develop profiles of each segment - market segmentation 4.evaluate the potential and attractiveness of each segment. 5. Select target segments - market targeting 6.identify positioning concept within each segment. 7. Select and develop the appropriate positioning concepts - product positioning 8. Develop marketing mix strategy - marketing mix |
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Good segment - requirements: |
Is measurable Is accessible Is substantial - cost effective niche marketing vs mass retailing Is unique - can be distinguished from other markets Appropriate - to organisations objectives Is stable and defensible |
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Benefits of segmentation |
Allows organisation to target a segment or segments of the market and thus be more efficient and effective Provides foundation for united and focused effort Organisation can differentiate itself from competition by Better satisfying customers Identify market opportunities and threats |
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Factors for assessing market attractiveness |
Back (Definition) |
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Capability to compete |
Back (Definition) |
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Target marketing |
Successful organisations realise they cannot be all things to all people Segmentation enables orgs to make decisions between market population Segmentation then used as a prerequisite to successful business focus and targeting |
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4 market targeting strategies |
Undifferentiated - organisation defines an entire market for a product as its target market Differentiated - organisation directs its marketing efforts towards 2+ segments by developing a marketing mix for each Concentrated/niche - organisation directs marketing effort towards single market segment via one marketing mix Customised - targeting each customer individually |
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Undifferentiated marketing |
Firm —> market Advantages: Cost economies in production, distribution and promotion Disadvantages: Doesn’t correspond to increasingly sophisticated and fragmented nature of majority of markets |
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Differentiated marketing |
Firm —> segment 1 Firm —> segment 2 Advantages: Capitalises on different patterns of consumer demand and address sophisticated customer Disadvantages: More expensive (marketing mix for all segments) |
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Concentrated marketing |
Firm —> segment 1,2,3 (1 marketing mix) Advantages; Control over costs by advertising and distributing to segment viewed as primary Disadvantages: Possibly missed opportunities if just focusing on 1 segment |
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Customised marketing |
Back (Definition) |
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Segmentation trade offs |
Back (Definition) |
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Positioning |
Process of creating an image for a product/service in minds of target customers Based on customer perception and based on variables and within parameters important to them Marketers use perceptual mapping to visually depict consumer perceptions of brands Gaps spotted are attractive opportunities - or a reason why no firms there. |
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Positioning |
Process of creating an image for a product/service in minds of target customers Based on customer perception and based on variables and within parameters important to them Marketers use perceptual mapping to visually depict consumer perceptions of brands Gaps spotted are attractive opportunities - or a reason why no firms there. |
