Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

MKT1002 > Lecture 7 Targeting and Positioning > Flashcards

Lecture 7 Targeting and Positioning Flashcards

(83 cards)

Start Studying
1
Q

What does market segmentation do?

A

Identifies bases for segmentation

Determines important characteristics of each market segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does market targeting do?

A

Evaluates the potential and commercial attractiveness of each segment
Select one or more segments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does product positioning involve?

A

Developing a detailed product positioning for selected segments
Develop a marketing mix for each selected segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What 3 factors are used for evaluating and selecting target segments?

A

Segment size and growth
Segment attractiveness
Company objectives and resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is size and growth of the segment relative to?

A

This is relative to the organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is thought about in terms of size and growth?

A

Don’t have to go after the biggest market with the most growth
Can target smaller markets, this may not be attractive for some but not for others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is meant by competitive position?

A

Are there lots of strong aggressive competitors in that market place?
Is it easy for new entrants to enter? Are there substitutes on offer?
Porters Five Forces

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does size involve?

A

How large is the target market and is it worth pursuing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does expected growth involve?

A

Even if the market is small, it may be profitable if there are indications that it will grow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What sort of competitive position is attractive?

A

Low competition equals attractive market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why is cost to reach important?

A

Need to know if the market is accessible with the chosen tactics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why is compatibility important?

A

The market needs to be aligned to the goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are Porter’s five forces?

A 
Competitors
Buyers
Substitutes
Suppliers
New entrants
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In Porter’s five forces what is important in terms of competitors?

A

Market share/ volumes
Market sectors/ product/ service type
Market responses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

In Porter’s five forces what factors make buyers important?

A

Price/ total purchases
Buyer concentration versus firm concentration
Ability to backward integrate
price sensitivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In Porter’s five forces what factors make substitutes important?

A

Switching costs and propensity to substitute

Relative price performance of substitutes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In Porter’s five forces what factors make suppliers important?

A

Differentiation of inputs
Supplier concentration
Threat of forward integration
Switching costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

In Porter’s five forces what makes new entrants important?

A

Economies of scale
Government policy
Capital requirements
Proprietary products/ services/ technologies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are 4 main threats to competitors on Porter’s five forces?

A

Threat of new entrants
Bargaining power of buyers
Threat of substitutes
Bargaining power of suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What will compatibility of a market influence?

A

Size and growth

Competitive position

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What needs to be thought about when looking at market compatibility?

A

The firm’s long term objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

In terms of compatibility, when should a company enter a market segment?

A

A company should only enter a market segment in which it can create superior customer value and gain advantage over its competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does the target market include?

A

This consists of a set of buyers who share common needs or characteristics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the chosen target market based on?

A

Segment analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
In what way can targeting be carried out?
At different levels with a range of strategies
26
What are the 4 types of targeting strategy?
Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing
27
What does undifferentiated marketing involve?
It targets the whole market with one offer and ignores the segments
28
What does differentiated marketing involve?
Separate market segments are targeted with separate offers for each
29
What does concentrated marketing involve?
Concentrating on one or a few segments or niches
30
What are the two types of micromarketing?
Local marketing | Individual marketing
31
What is local micromarketing?
Targeting a city, neighbourhood or specific store
32
What is individual micromarketing?
Targeting one person
33
What does undifferentiated marketing focus on?
It focuses on what is common in a segment but not what is different
34
How is the marketing mix used in undifferentiated markets?
The marketing mix that appeals to the largest number of buyers is used
35
Why is mass marketing generally not a strategic approach?
You can't develop a brand that can satisfy all and you would be unable to compete against those in the market who are more focused
36
What does the product involve in mass marketing?
It is designed for everyone and isn't intended for a particular demographic or customer need e.g. classic salad dressing
37
What does the price involve in mass marketing?
A single pricing structure that doesn't consider willingness to pay of the different segments in the same market e.g. cloud computing service with the same price for individuals as businesses
38
What does differentiated marketing focus on?
A firm targets several market segments and designs separate offers for each
39
What is hoped for when using differentiated marketing?
Hope for high sales and a stronger position within each market segment
40
How do sales in differentiated markets compare to undifferentiated markets?
More overall sales than in an undifferentiated approach
41
What is a disadvantage of doing differentiated marketing instead of undifferentiated marketing?
It increases the cost of doing business as it is more expensive to develop and produce lots of different products compared to one
42
How does differentiated marketing work and how does it add to costs?
``` Separate marketing plans Extra marketing research Promotional planning Communications and campaign costs Channel management ```
43
What is the price aspect in differentiated markets?
E.g. a running shoe company produces a product with a cushioned ride for runners worried about impact
44
Give an example of price in a differentiated market
An organic coffee with standard and premium versions. Standard for people on a budget Premium for people with no budget restraints and want the best option available
45
Give an example of promotion in a differentiated market
A ski slope produces 2 videos, one for young people and one for families and then place the advert alongside content that appears to the demographic
46
What is concentrated marketing?
This is where a firm goes after a large share of one or a few smaller segments rather than going for a small share of a large market
47
Why do concentrated markets achieve a strong market presence?
They have a greater knowledge of customer needs and develop a reputation in that market place
48
What are two benefits of concentrated marketing?
Market more effectively as you can fine tune products and promotions to the chosen segments Market more efficiently as it only targets those that it can serve best and most profitably
49
What is an issue with concentrated marketing?
It can be risky because the segment could turn sour or a large competitor could enter the market
50
What does micromarketing do?
It tailors products and the marketing mix to the needs and wants of specific individuals and local customer segments
51
What creates competitive advantage?
If the product or service can add to the customer value
52
What does local marketing do?
Tailors brands and promotions to the needs and wants of local customers
53
What can location based marketing track?
It can track consumers whereabouts and personalise the message to them easily and directly when they are in that location
54
What is an issue with local marketing?
It can be expensive as it reduces economies of scale | Logistically it could be difficult to meet the requirements of different local markets
55
What is individual marketing the extreme of?
It is the extreme of local marketing
56
How does individual marketing tailor its products?
It tailors its products and the marketing mix to individual customers, one to one marketing
57
How has technology helped individual marketing?
It allows it to be customised by allowing mass customisation which is mass but individual
58
What sort of personalisation does individual marketing entail?
Hyper personalisation- products, promotions and experiences
59
What is important to consider when deciding on the targeting approach?
It is important to consider how you can be socially responsible
60
Why can targeting generate controversy?
Targeting can create controversy based on the way the segment is chosen- think about unconscious bias
61
What is an issue with market research?
Are we stalking consumers or serving them?
62
What is positioning about?
This is about creating value preposition- how will you position yourself compared to the competition so that the consumer knows who you are, what you give to them and how the consumer perceives you?
63
Where do brands happen?
In the minds of customers
64
What is a product's position a complex set of?
Perceptions, impressions and feelings that consumers have for the product
65
What do positioning maps help to show?
These show what consumers think of you compared to others and can inform your future strategies to change if you are not where you want to be
66
What is positioning about?
The USP
67
Why is differentiation important?
It isn't enough to say you do something, you must deliver on the position that has been occupied in the consumers mind. Differentiation is where you may gain competitive advantage
68
What are 5 different methods of differentiation?
``` Product differentiation Services differentiation Channel differentiation People differentiation Image differentiation ```
69
What is product differentiation?
Brands can differentiate on features, performance, style or design (e.g. Apple)
70
What is services differentiation?
Speedy convenient service e.g. Amazon
71
What is channel differentiation?
The way the company designs its channel coverage, expertise and performance
72
What is people differentiation?
Hiring and training better people than the competitors do (e.g. Apple versus Curry's)
73
What is image differentiation?
String, visible, memorable images and logos
74
What are the 7 factors in choosing the competitive advantage?
``` Importance Distinctive Superior Communicable Pre-emptive Affordable Profitable ```
75
How can importance aid competitive advantage?
The difference delivers a highly valued benefit to target buyers- it has to be important to the buyers
76
Why does the product have to be distinctive to gain competitive advantage?
Competitors do not offer the difference or the company can offer it in a more distinctive way
77
Why should the difference be superior?
The difference is superior to other ways that customers might obtain the same benefit
78
Why should the differences be communicable?
Customers need to know about it
79
Why should the difference be pre-emptive?
Competitors cannot easily copy the difference
80
Why should the difference be affordable?
Buyers need to be able to afford the difference
81
Why should the product be profitable?
The company can introduce the difference profitably
82
What is the full positioning of a brand called?
The brand's value preposition
83
What are the 5 main types of value preposition?
``` More for less More for the same More for more The same for less Less for much less ```

MKT1002 (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions