Segmentation, Targeting and Positoning Flashcards
(39 cards)
What is segmentation?
dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours and who might require separate marketing strategies or mixes.
What is a target market?
is at is most basic, simply the market or submarket (such as a segment) at which the firm aims its marketing message.
Group of customers have been identified for whom the offering should be ‘right’ and to whom the firm will direct the majority of its marketing time, resources and attention.
What are the benefits of segmentation and targeting?
- enables you to better understand what business you are in
- position products closely to your target segment
- enhance your understanding of your customers
- places customers at the core of all decisions
- builds loyalty, high potential customers identified, predict future purchase patters
- enables you to identify new products and service opportunities
What is geographic segmentation?
a useful starting point, ‘catchment’ area relevant to certain businesses, used to structure operations of large companies, easy to define and measure, doesn’t result in meaningful clusters of similar customers, vulnerable to competition.
Sources - own company records and data bases, ONS
What is demographic segmentation?
adds descriptive information, easy to define and measure, provides a clear customer profile, but no information about lifestyles, needs and wants, vulnerable to competition.
Sources - own company records, databases, ONS, syndicated market research
What is psychographic segmentation?
‘lifestyle’ segmentation = customer wants, getting under the skin of the customer, products defined in terms of lifestyle benefits - marketing at a more emotional level, less vulnerable to competition, harder to define and measure, many intangible variables, risk of too much stereotyping.
Sources - require primary research in addition to other sources
What is behaviour segmentation?
Focuses on the customers relationship with the product, end use (baking soda), transaction frequency e.g. from scanner data, profitability of the customers loyalty etc
less vulnerable to competition, based on data that should be available or easy to record, danger to be a self-fulfilling prophecy.
What are the stages of segmentation and targeting?
- Identify the broad market of interest
- Identify key buyer characteristics
- Cluster buyer types - identify differentiation, dimensions, name/label different segments
- Find out what they do and why they do it e.g. UX market research
- Estimate size potential and cost of each segment
- Select your targets.
What is a example of Boots pharmacy in the stage of segmentation and targeting?
- pharmacy, health, wellness and beauty market
- key buyer characteristics - demographic and geographic, psychographic and behavioural
- beauty enthusiasts, health and wellness seekers, convenience shoppers, senior health, bargain shoppers, beauty experience seeks, conscious consumer
- market research to better understand better each market segment previously identified
- estimate size, cost and potential of each segment e.g. 31% of UK consumers are interested in health and drug store products
- target - senior health?
What is positionig?
a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. It’s achieved by defining a specific strategy.
What are perceptual maps?
choosing appropriate axes is critical, it requires a deep understanding of competitors market dynamics and consumers.
How do you achieve positioning?
Deploy the marketing mix, you can target one segment with one mix.
Segmentation enhances the understanding of the business you are in and your customers.
Segmentation and targeting helps you break down the market - segments need to always be together.
Position yourself accordingly in mind of your target segment, deploying one marketing mix for one target segment.
What are Euromonitor’s consumer type segmentation?
- Secured traditionalist - actively avoids shopping.
- Balanced optimist - focus on enjoying the present and planning.
- impulsive spender - discount and bargaining oriented.
- Minimalist seeker - do not place much importance on their image.
- Undaunted striver - trendy customers willingness to spend money in order to maintain status
- Digital enthusiast - value and prioritise all things technology
What is positioning?
a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands in the mind of the customer. It is achieved by defining a specific and consistent strategy
What is a position statement?
is a brief description of a product or service and an explanation of how it fulflls a particular need of the target market.
Goal is to align marketing efforts with a company brand and value proposition - purpose to convey a brand value proposition to its ideal customer
What is a mission statement?
is the purpose your business serves in the market - inherent part of the organisation that guides every business function
What is value proposition?
this and positioning statement are both key elements in a businesses marketing strategy.
Value proposition describes what sets your product or service apart from competitors - overviews of the benefits a product or service offers.
What should a position statement include?
- who you serve
- what makes you different from the competition
- what value you offer
- how you position your offer
- why you’re in business
- what makes you different from the competition
- description of your target market and its needs
- how your business will meet their needs
- what differentiates your product or service from competition
- description of your target market and its needs
- why consumers in your target market should believe your brands claim
What are the core elements of strategic market positing?
- target market
- market category
- customer pains
- brand promise
- brand identity and values
What is a unique selling proposition?
a specific, tangible claim or feature that differentiates a product or service from competitors in a compelling and memorable way.
What is the audience, breadth, example and summary of a positioning statement?
internal (guides brand strategy), broad and strategic, guides advertising tone, where your brands fits in the market
What is the audience, breadth, example and summary of a value proposition?
external (appeals to customer needs), comprehensive, benefits oriented, used in sale pitches or product messaging, why customer should you choose you overall
What is the audience, breadth, example and summary of USP?
External (drives purchase decisions), specific and feature focused, highlighted in slogans and ads, the one thing you do differently than anyone else.
Give me an example of strategic market positioning?
PLT - target market - women aged 16 to 35 who are fashion forward and looking for on trend clothing at a reasonable price point.
Market category - fast fashion
Customer pains - high turnaround of fashion cycle and trends, status? lifestyle?
Brand promise -> ‘we believe style should be accessible to all whatever your budget as we deliver product inspired form the catwalk and the coolest muses of the moments’
Brand identity - recognisable colour scheme, style and logo
Brand values - fashion accessibility and affordability, body positivity, equality and diversity, sustainability.
USP of PLT - ‘for the person who is a modern girl who owns her style and is feeling all around herself. PLT provides accessible fashion because the brand is offering affordable catwalk inspired clothing in a variety of sizes.
