segmentation, targeting and positioning

mass marketing

not differentiating marketing strategy/location/product itself

advantage of mass marketing

economies of scale, reach large audience, low production cost

differentiated marketing definition

tailor products to meet specific needs of consumers by segmenting the market into distinct groups

disadvantage of mass marketing

rarely works, lack personalisation

advantage of differentiated marketing

can charge higher prices, more personalised, competitive advantage

disadvantage of differentiated marketing

more expensive, time consuming

niche marketing definition

specify your marketing mix to one specific segment

advantages of niche marketing

brand loyalty, less competition, strong customer relationship

disadvantages of niche marketing

limited market growth, often expensive, vulnerable to market changes

market segmentation definition

process by which customers with some differences can be grouped into smaller, more similar homogenous segments

market segment definition

group of individuals, groups, organisations that share one or more similar characteristics which make them have relatively similar product needs

Kotlers bases for segmentation

geographic, demographic, psychographic, behavioural

what is geographic segmentation

where customers are - infer people’s characteristics from type of neighbourhood they live in (cluster typologies)

what is demographic segmentation

what customers are: age, gender, race, socio economic (income, occupation), family structure, life cycle

what is psychographic segmentation

how customers think: why and who, lifestyle, personality, perception, attitudes, motives

what is behavioural segmentation

how customers behave: who, how, where, when, purchase/transaction, consumption/usage, media and tech usage

how to position yourself

brand image, physical attributes, communication