Flashcards
Market Segmentation and Targeting
Cards in this deck (39)
- 1What are the four steps in designing a customer driven market strategy?Market segmentation
Market targeting
Differentiation
Marketing Positioning - 2What is a market?A group of potential buyers who need and have the ability, willingness and authority to buy a given product
- 3What are the requirements for a market?Basic Needs and Wants
Ability to Pay
Willing to Act
Authority to do so (legal rights e.g. alcohol 18+) - 4Why are these all important factorsBecause if consumers are not able to act it's not really a market place
e.g. under 18s is not a market place for clubs/alcohol shops e.g. majestic - 5What else is an important element to note about markets?That where are different types of markets
B2B
B2C
different buying procedures and behaviours and powers - 6What are the reasons for doing market segmentation anywayCustomer Analysis - different customers have different needs/want/perceptions of value
Competitor Analysis - are there any needs they're not fulfilling? Have they missed a target group? Is there something you can do better? - 7What are the reasons for doing market segmentation anywayResources - Helps with management and allocation of them. Different customers may require different parts/resources e.g. different gearboxes for BMW and VW
Planning - you can tailor marketing plans specifically to behaviours and need of different customer segments - 8what is the order of the steps in developing this customer driven market strategySelect Customers to Serve
SEGMENTATION - divide market into smaller segments
TARGETING - choose which segment(s) to serve - 9What is the order of the steps in developing this customer driven market strategy?Decide on Value Proposition
DIFFERENTIATION - differentiate offer to create value
POSITIONING - Position the offer in the minds of the target customers - 10What's the end goal of this whole process?To create value for the target customers
- 11What is market segmentation?Divide large heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs
- 12What are the forms of segmentationNo segmentation
Single variable segmentation
Multi Variable segmentation - 13What does no segmentation mean?You directly target individuals
Mainly in B2B markets
although internet and use of cookies has allowed for very tailored B2C adverts/offers - 14What is single variable segmentation?When you use one individual segmentation bases
E.g. geographic by country only
Usually used when a company is growing - 15What is multi variable segmentationIts more complex
Its when you use multiple segmentation bases for very specific customer analysis and targeting
Have to find the most appropriate base for you organisation/product - 16What do most organisations do during this processThey go through the segmentation over and over again until they hit their goldmine segment
- 17Give an example of a company that used/uses mutli variable segmentationCalvin Klein CKIn2U campain
male and female
age - young
Lifestyle - socialites, sexually active (16/18+) Urban location
...White???
"In2U" text speaks reiterate young target market - 18Segmentation Bases for customer marketsGeographic
Demographic
GeoDemographic
Psychographic
Behavioural - 19What does geographic segmentation involve?Dividing the market into different geographical units
Nations, Regions, States, Counties, Cities, Neighbourhoods
Size, Density, Climate - 20Give an example of somebody who uses geographic segmentationTESCO
they tailor their stores to the location
Extra - out skirts of towns/cities
Metro - inner city
Express - emergency road side/small town
One Stop - neighbourhood local without Tesco Name - 21What does demographic segmentation involve?Dividing the marketing up into groups based on demography variables
Age, Gender, Occupation, Education, Income, Life cycle stage, Family Size, religion, race, nationality - 22Are there any problems with this?Slightly stereotypical? Especially with regards to age/gender in the plight for equality and LGBT committee
- 23What are the stages of the family life cycleBachelor
Newly Wed
Full Nest 1 2 3
Empty Nest 1 2
Solitary Survivor 1 2
Doesn't necessarily happen in that order - 24What is geodemographic segmentationWhen you divide markets up into groups based on geographic units and demographic categories
ACORN
stores data by location and categories it by demography units (very specific categories) - 25What is psychographic segmentation?Divide market up based on social class, lifestyle and personality
Horse & Hound
AMEX - 26What is behavioural segmentation?Dividing the market into groups based on knowledge, attitudes, uses and responses to/of a product
- 27What are some behavioural segmentation bases?Occasion AFTER EIGHTS
User Status First Time/regular
Usage rate How Often
Loyalty Status
Benefit segmentation - what is the customer seeking COLGATE whiter teeth, healthy gums, nice breath - 28How can we segment Business marketsDemographic
Operating Variables
Purchasing approaches
Situational factors
Individual characteristics - 29What are the demographic factorsindustry
company size
location - 30what are the operating variables basesTechnology
User status
customer capabilities - 31What are the purchasing approaches basesPurchasing function
Power structure
Existing relations
Purchase policies
Purchasing criteria - 32what are the situational factorsurgency
specific application
size of order - 33what are the personal characteristicssimilarity
attitudes to risk
loyalty - 34What is intermarket segmentation?Group consumers together who have similar needs and buyer behaviour even though they're in different countries
- 35What are the requirements for effective segmentationMASDA
Measurable
Accessible
Substantial
Differentiable
Actionable - 36What is market TARGETINGEvaluating the identified segments and deciding how many and which segments the company can serve best
- 37What are the four tiers of segment attractivenessFIRST TIER - is it profitable in the long term
SECOND TIER - how fast is the market growing and what volume can we get
THIRD TIER - whats the competition like - will we stand out
FOURTH TIER - how stable is it are there any emerging techs that can substitute us - 38What are the strategies for market targeting?1. Undifferentiated Marketing
2. Differentiated (segmented) Marketing
3. Concentrated (niche) Marketing
4. Micro Marketing - 39What factors affect the choice of target market strategyCompany resources - budget, capacity
Product Variability - phones, cars, laptops
Product Life Cycle Stage - growth/decline?
Market Variability
Competitors market strategy - what needs/who's needs did they miss
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- Second Year Marketing (Term 1 ) Flashcards on Market Segmentation and Targeting , created by Alex Millar on 25/05/2016.
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