Marketing Management Lecture 6: Segmentation, Target Marketing & Positioning

Flashcards covering market segmentation, target marketing strategies, and brand positioning concepts from MKT2024 Marketing Management.

What is the primary goal of market segmentation?

To find factors about a heterogeneous market that allow for dividing it into smaller, more homogeneous subgroups to develop distinct marketing strategies.

Which brand is cited as a classic example of segmentation by targeting children, adults, and health-conscious consumers?

Colgate.

What five criteria must a segment meet to be considered effective?

Measurable, Accessible, Substantial, Differentiable, and Actionable.

In the context of effective segmentation, what does 'Measurable' refer to?

The size, demographics, and purchasing power of the segment must be quantifiable.

What are the four main approaches to market segmentation?

Geographic, Demographic, Psychographic, and Behavioral.

What four variables are used in Geographic Segmentation?

Region, Population Density, Population Size, and Climate.

How does Skechers Malaysia utilize regional geographic segmentation?

By strategically placing stores in high-footfall urban areas concentrated in the Central Region, such as KLCC, Sunway Pyramid, and One Utama.

How do infrastructure and amenities differ between Urban and Rural areas in population density segmentation?

Urban areas have extensive infrastructure and abundant amenities, whereas rural areas have less developed infrastructure and limited, basic amenities.

According to climate-based segmentation, what products are targeted toward warm climates like Southeast Asia?

Breathable, moisture-wicking clothing and sun protection gear.

What are the nine personal characteristics used in Demographic Segmentation?

Age, Generational Group, Gender, Family and Household, Race and Ethnicity, Income, Occupation, Education, and Social Class.

How does McDonald's Malaysia cater to the preferences of Malaysian Chinese consumers with the GCB product?

By offering a grilled (rather than deep-fried) option with Chinese BBQ or teriyaki-style sauces and a 'prosperity' association.

What income framework does Maybank use to segment customers for tailored financial products?

The B40 (Bottom 40%), M40 (Middle 40%), and T20 (Top 20%) framework.

How does Proton segment its vehicle lineup based on social class?

It offers the Proton Saga for the lower social class, the Proton Persona for the middle social class, and the Proton X70 for the upper social class.

What consumer variables are used in Psychographic Segmentation?

Personality and AIOs (Activities, Interests, and Opinions).

What are the three types of purchasing occasions in Behavioral Segmentation?

Universal occasions (holidays), recurring personal occasions (birthdays), and rare-personal occasions (weddings).

How is Milo used to illustrate Usage Pattern segmentation?

Heavy users/Super users are targets for $1\,kg$ or $2\,kg$ packs, Medium users for $400\,g$ packs, and Light users for $200\,g$ trial packs.

What are the four categories of User Status in behavioral segmentation?

Non-Users, Prospects, First-Time Buyers, and Defectors.

What is the three-step process of Targeting?

1. Analyze market segments; 2. Develop profiles of each potential target market; 3. Select a target marketing approach.

What is Undifferentiated (Mass) Marketing?

A strategy that treats the entire market as a single homogenous segment with one product and one message.

What is Concentrated (Niche) Marketing?

A strategy where all marketing efforts are focused on one specific segment, effective when resources are limited.

How is Positioning defined in marketing?

The place a brand occupies in the minds of customers and how it is distinguished from competitors.

What axes are typically represented on a perceptual map for positioning?

Attributes that are important to consumers and where brands genuinely differ, such as Price and Quality.

What is the positioning error of 'Overpositioning'?

Attaching a very narrow image to a brand, such as consumers believing Apple only produces expensive products like iPhones and MacBooks.

What occurs in 'Confused Positioning'?

Frequent changes and contradictory messages confuse consumers about the brand's positioning.

What is 'Doubtful Positioning'?

When the claims made for a product or brand are not regarded as credible by consumers, such as a skin cream claiming to make users look ten years younger.