MS 4 segmentation, targeting and brand postioning

What is market segmentation?

dividing a heterogeneous market into homogeneous groups of customers with similar needs and preferences

The four segmentation criteria?

Demographic: who customers are (age, gender, income)

Geographic: where customers are (regions, countries, neighbourhoods)

Psychographic: why customers make decisions (values, attitudes, interests, lifestyles)

Behavioural: what customers do (brand preferences, media consumption, price sensitivity)

The six requirements of effective market segments?

• clear differentiation and relevance

• Measurability

• Stability over time

• Actionability

• Accessibility

• Economic viability

What is customer persona, why is it useful?

A persona represents the typical customer within a market segment. It makes abstract segment descriptions more realistic and helps marketers understand the customers perspective

Three stages of the STP process?

• segmentation: group consumers with similar needs and preferences

• Targeting: assess and select attractive market segments

• Positioning: establish the brands value proposition and design the marketing mix

What should a business consider when selecting target segments?

The attractiveness of each segment and which segment the business should select to target

Brand positioning?

From the consumers perspective, it refers to the associations and consumers hold about a brand. From the firms perspective, it’s the process of establishing favourable associations in consumers minds

What id a unique value proposition (UVP)?

The part of a brands positioning that sets it apart from competitors by offering distinctive customer benefits

What are points of parity (POP) and points of differentiation (POD)?

Points of parity: benefits or attributes shared its competing brands

Points of differentiation: distinctive benefits or attributes that distinguish a brand from competitors

What are 4 types of customer benefits used in brand positioning?

• functional: practical benefits and performance

• Emotional: feelings associated with a brand

• Psychological: benefits relating to identify or self-perception

• Social: benefits relating to social identity and how others perceive the consumer

The difference between a product attributes and customer benefit?

A product attribute is a feature of the product, whereas a customer benefit is the value the consumer gains from it. For example, aesthetic product design (attribute) can provide a fashion statement (benefit)

What is the structure of a unique value proposition statement?

“For (target market), brand X is the only brand among (competitors) that (unique value claim) because (main reasons to believe)”

How can a brand implement its positioning thought the marketing mix?

Though the 4Ps: Product, price, promotion and place.

The extended 7Ps add People, process and physical appearance

How can businesses map their brand position relative to competitors?

By asking consumers to compare brands across different attributes or by using text-mining techniques to analyse brand-related conversations in consumers perspective-generated online content