Ch 6. | Segmentation and Positioning

Question 1

what are the 2 main market segments?

Answer 1

consumer market
- goods, services, and ideas for personal use

business market
- products to run a business or be used as a component in another good or service

Question 2

what are the 4 forms of market segmentation?

Answer 2

• mass marketing
• segment marketing
• niche marketing
• individualized marketing

Question 3

explain what mass marketing is

Answer 3

mass marketing
- is when a product with broad appeal is widely marketed to the entire market

eg: utilites - natural gas, fruits and vegetables

Question 4

explain what segment marketing is

Answer 4

segment marketing
- it involves the marketing of a wide range of different products and brands to specifically meet the needs of an organization’s varied target markets

eg: GM motors, P&G proctor & gamble

Question 5

explain what niche marketing is

Answer 5

niche marketing
- where a company restricts its efforts to marketing a limited product line to a narrow but profitable single segment of the market

eg: tesla or eco-max laundry detergent

Question 6

explain what individualized marketing is

Answer 6

Individualized marketing
- it involves customizing products to fit individual needs

eg: Coca-Cola’s “Share a Coke” campaign where customers can find their own names

Question 7

define what a target market is

Answer 7

target market
- specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts

Question 8

• what are the 4 different segmentation variables in a consumer market?
• name ≥ 3 variables associated with them

Answer 8

geographic
where does the target market live?
- country / region / province / city
- city size
- population density

demographic
- age / gender / family composition
- income / occupation / education
- ethnic background

psychographic
what are the attitudes, values, interests, habits, opinions and approaches to life?
- attitudes to life
- values
- personalities
- lifestyle / leisure
- media / technology preferences

behaviouristic
how and why does this target market use and interact with the product?
- why consumers buy a product
- the expected product benefits
- how a product is used
- how frequently consumers buy the product
- where they buy

Question 9

define “persona”

Answer 9

persona
character descriptions of a brand’s typical customer.
- it brings data alive: “day in the life”

Question 10

what is product positioning?

Answer 10

product positioning
the impression of the branded product you want to establish in the consumers’ minds relative to their needs
- image
- product attribute
- price

Question 11

Positioning statements are simple, clear, and focused. What 4 elements does a product position contain?

Answer 11

1. target market and need
2. branded product name
3. category in which it competes
4. brand’s unique attributes and benefits

For (target market) who desire (target market need), (brand) is the (product category) that offers (product benefits)

Question 12

what are the 3 key steps when positioning a product or brand effectively?

positioning / perceptual map

Answer 12

1. identify the important attributes for a product or brand class
2. discover how target customers rate competing products or brands with respect to these attributes
3. discover where the company’s product or brand is on these attributes in the minds of potential customers