Module 6 Flashcards
What is a unilever?
Both body washes are unilever products, both have similar benefits, but target different groups, and are positioned differently in the market
-They each serve different segment’s unique needs and wants
What is a market segment (segmenting)?
-A group of people similar on one or more dimensions relevant to the product (or service)
-The process of grouping similar customers in a market according to several variables
What is target marketing (targeting)?
The segment most aggressively pursued
What is market position (positioning)?
The way a product is perceived relative to the competition in consumer’s minds
Why do marketers segment?
-Allows marketers to focus their resources on the most promising opportunities. This improves marketing efficiency and effectiveness as the organization gets to know each segment’s customers and what they want and need
What are the four primary bases for consumer market segmentation?
-Geographic
-Demographic
-Psychographic
-Behavioural
What is geographic segmenting?
-May operate in different regions or different countries
-May create a product that fits within a specific geographic region (sleeping bags for mountaineers)
-Lots of companies are segmenting more locally
What is demographic segmentation?
-Age, gender, family life cycles, household size, income and expenditure pattern, occupation, education, religion, ethnic origin
-Popular approach because its easy to use, identify, measure, often in advertising and is associated with the sale of many products and services
What is psychographic segmentation?
-Differentiates consumers on the basis of social class, personality, lifestyle
-Profiles are developed based on agreement or disagreement with AIO statements
What is benefit segmentation?
-Based on attriutes of product/service as percieved by the consumer
-Determined by asking the consumer
What is necessary for a segmentation to be effective?
-Measurable: Aspects of the segment can be measured numerically
-Differentiable: The segment is unique and has similarities that are different from others
-Accessible: You are able to reach the segment
-Substantial: The segment is large enough to support the business if targeted
-Actionable: you are able to pursue and capture the market
How does segmentation affect marketing decisions?
-Geographic segmentation: store location
-Demographic segmentation: communication channles
-Psychographic segmentation: message
-Benefits segmentation: features
-Usage rate segmentation: promotions
What are the segmentation strategies?
-Mass marketing: large market, single offer, focus on what consumers have in common
-Differentiation: large market, multi-offer, focus on consumer’s differences
-Concentrated (niche): small/focused market, single offer, good when limited resources but tough competition from big players
-Micromarketing: small/focused marked, multi-offer
What is primary and secondary target market?
Primary: the segment that is most attractive and that your value proposition and offering is most likely to appeal to
Secondary: the second most important segment of potential consumers or influences of your primary target market
What is a target market profile?
-A tool that helps marketers visualize their targets and help keep the marketing focused on them
-It is a detailed fictisious profile of an ideal customer from your organizations targeted segment that details how this person behaves, lives, their preferences and attituds, their like and dislikes, etc.
