Market Segmentation, Targeting and Positioning

This set of flashcards covers key concepts related to market segmentation, targeting, and positioning as discussed in the lecture notes.

What are the steps in market segmentation, targeting, and positioning?

1. Segmentation: divide the total market into smaller segments. 2. Targeting: select the segment or segments to enter. 3. Differentiation: differentiate the market offering to create superior customer value. 4. Positioning: position the market offering in the minds of target customers.

What is market segmentation?

A process of dividing a heterogeneous market into several segments, each of which tends to be more homogeneous in significant aspects.

What is effective market segmentation?

Effective market segmentation allows firms to group consumers with similar preferences to tailor marketing efforts more efficiently.

What are the major bases for segmenting consumer markets?

Geographic, demographic, psychographic, and behavioral segmentation.

What is targeting in marketing?

The process of selecting one or more market segments to enter.

What are the requirements for effective segmentation?

Segments must be measurable, substantial, accessible, actionable, and differentiable.

What is concentrated marketing?

A niche marketing strategy where a firm targets a large share of one or a few smaller segments or niches.

What forms can differentiation take in marketing?

Product differentiation, people differentiation, channel differentiation, image differentiation, and services differentiation.

How can positioning for competitive advantage be defined?

The place a product occupies in consumers’ minds relative to competing products.

What is a Unique Selling Proposition (USP)?

A marketing concept that focuses on creating a unique and appealing proposition to distinguish the product from competitors.

What are the different possible value propositions for positioning?

1. More for More 2. More for the Same 3. The Same for Less 4. Less for Much Less 5. More for Less.

What is the purpose of a positioning statement?

To succinctly express the brand offering, target segment, and unique value or point of difference.

How should a company communicate and deliver its chosen position?

Through its marketing mix: product quality and features, pricing strategies, promotional activities, and distribution channels.

What is the significance of psychographic segmentation?

It divides buyers into groups based on personality, lifestyle, and social class, revealing different motivations within the same demographic.

What does behavioral segmentation focus on?

Dividing the market based on variables such as occasions, benefits sought, user status, and loyalty status.

What factors should be considered when evaluating market segments?

Segment size and growth, segment structural attractiveness, and company objectives and resources.

What is undifferentiated marketing?

A marketing strategy that targets the whole market with one offer, focusing on what is common in consumer needs rather than differences.