Podcast
Questions and Answers
What is the primary goal of positioning in marketing?
What is the primary goal of positioning in marketing?
Which is the first step in the positioning process?
Which is the first step in the positioning process?
A positioning statement primarily serves to support which aspect of marketing?
A positioning statement primarily serves to support which aspect of marketing?
Why is it important for marketing mix elements to match selected segments?
Why is it important for marketing mix elements to match selected segments?
Signup and view all the answers
What does repositioning aim to achieve in marketing?
What does repositioning aim to achieve in marketing?
Signup and view all the answers
What should be analyzed during the first step of positioning?
What should be analyzed during the first step of positioning?
Signup and view all the answers
What method uses psychological and sociological factors to categorize customers?
What method uses psychological and sociological factors to categorize customers?
Signup and view all the answers
Which marketing mix element is NOT typically included in the concept?
Which marketing mix element is NOT typically included in the concept?
Signup and view all the answers
What can repositioning do for retro brands?
What can repositioning do for retro brands?
Signup and view all the answers
Which of the following is NOT a factor in behavioral segmentation?
Which of the following is NOT a factor in behavioral segmentation?
Signup and view all the answers
What does the 80 / 20 rule in behavioral segmentation typically refer to?
What does the 80 / 20 rule in behavioral segmentation typically refer to?
Signup and view all the answers
In B2B markets, firms are categorized based on all EXCEPT which of the following?
In B2B markets, firms are categorized based on all EXCEPT which of the following?
Signup and view all the answers
What does the term 'segment of one' refer to in marketing?
What does the term 'segment of one' refer to in marketing?
Signup and view all the answers
Which generation is generally more responsive to digitally driven solutions?
Which generation is generally more responsive to digitally driven solutions?
Signup and view all the answers
What is the primary purpose of the targeting step in marketing segmentation?
What is the primary purpose of the targeting step in marketing segmentation?
Signup and view all the answers
Anticipatory shipping primarily relies on which technology?
Anticipatory shipping primarily relies on which technology?
Signup and view all the answers
What is the primary objective of market segmentation?
What is the primary objective of market segmentation?
Signup and view all the answers
Which of the following is NOT a step in the target marketing process?
Which of the following is NOT a step in the target marketing process?
Signup and view all the answers
What does market fragmentation refer to?
What does market fragmentation refer to?
Signup and view all the answers
Why is understanding customer diversity important in marketing?
Why is understanding customer diversity important in marketing?
Signup and view all the answers
What should marketers assess when evaluating market segments?
What should marketers assess when evaluating market segments?
Signup and view all the answers
What are the three main steps in achieving a successful target marketing strategy?
What are the three main steps in achieving a successful target marketing strategy?
Signup and view all the answers
What key factor contributes to the need for market segmentation?
What key factor contributes to the need for market segmentation?
Signup and view all the answers
How do marketers typically implement a positioning strategy?
How do marketers typically implement a positioning strategy?
Signup and view all the answers
What is the primary characteristic of a viable market segment?
What is the primary characteristic of a viable market segment?
Signup and view all the answers
What do segment profiles provide marketers?
What do segment profiles provide marketers?
Signup and view all the answers
Which targeting strategy involves marketing to a single segment?
Which targeting strategy involves marketing to a single segment?
Signup and view all the answers
What is a key advantage of an undifferentiated targeting strategy?
What is a key advantage of an undifferentiated targeting strategy?
Signup and view all the answers
What distinguishes a customized marketing strategy from other strategies?
What distinguishes a customized marketing strategy from other strategies?
Signup and view all the answers
In which situation is mass customization often applied?
In which situation is mass customization often applied?
Signup and view all the answers
What primary factor must a target market have for it to be effectively reached?
What primary factor must a target market have for it to be effectively reached?
Signup and view all the answers
What type of marketing strategy would a company use if it offers distinct products for various customer groups?
What type of marketing strategy would a company use if it offers distinct products for various customer groups?
Signup and view all the answers
What is segmentation primarily used for in marketing?
What is segmentation primarily used for in marketing?
Signup and view all the answers
Which of the following is NOT a type of segmentation mentioned?
Which of the following is NOT a type of segmentation mentioned?
Signup and view all the answers
How does demographic segmentation influence product appeal?
How does demographic segmentation influence product appeal?
Signup and view all the answers
Why is income an important factor in demographic segmentation?
Why is income an important factor in demographic segmentation?
Signup and view all the answers
What role does geographic segmentation play in marketing?
What role does geographic segmentation play in marketing?
Signup and view all the answers
What changes in family life cycle can affect demographic segmentation?
What changes in family life cycle can affect demographic segmentation?
Signup and view all the answers
Which statement accurately describes the influence of social class on consumer behavior?
Which statement accurately describes the influence of social class on consumer behavior?
Signup and view all the answers
Which of the following is a benefit of segmentation for marketers?
Which of the following is a benefit of segmentation for marketers?
Signup and view all the answers
Study Notes
International Business Marketing MARKEC04 - Lecture 3
- Course: International Business Marketing MARKEC04
- Cluster: A-cluster (1st year, 1st semester)
- Lecture: 3
- Topic: Segmentation, Targeting, and Positioning
Learning Objectives
- 7.1: Identify steps in the target marketing process.
- 7.2: Understand the need for market segmentation and different approaches.
- 7.3: Explain how marketers evaluate segments and choose a targeting strategy.
- 7.4: Recognize how marketers develop and implement a positioning strategy.
- 7.5: Understand the importance of target marketing (segmentation, targeting, and positioning) for a successful career.
Segmentation
- Segmentation is dividing a large market into smaller segments with shared characteristics.
- Useful for both consumer and B2B contexts.
- Many segmentation variables exist.
Segmenting Consumer Markets
- Consumer markets segmented by:
- Demographic (age, gender, family life cycle, income, social class, ethnicity)
- Geographic (location)
- Psychographic (lifestyle, values)
- Behavioral (usage rate, loyalty)
Demographic Segmentation Examples
- Gender: Many products appeal to one gender or the other.
- Family life cycle: Family needs and expenditures change over time. Different categories ascend or descend in importance.
- Income and social class: Income impacts buying power; marketers match products to consumer groups considering discretionary and non-discretionary income. Many consumers buy based on desired image, not their actual social class. "Easy credit" can lead to buying more than can be afforded.
- Geographic segmentation: Using geographic information systems (GIS) to tailor products to an area based on the preference of people in that area.
Segmenting by Psychographics
- Uses psychological, sociological, and anthropological factors to categorize customers.
- Shared activities, interests, and opinions (“AIO's”)
Segmenting by Behavior
- Behavioral segmentation categorizes based on how consumers act toward or use a product/service.
- Examples include: users/non-users, 80/20 rule, customer loyalty, experiential loyalty, usage rate, long-tail approach, and usage occasions.
Lifestyle Attitudes
- Shows various lifestyle attitudes (e.g., importance of looking good, being health conscious) quantified.
Segment B2B Markets
- Segmentation is useful for B2B firms.
- Helps B2B companies understand needs and characteristics of potential customers.
- Firms categorized based on: organizational demographics, production technologies, user/non-user status.
Disruptions in Segmentation: When Everybody's a Segment of One
- Predictive analytics, driven by AI, allows marketers to know customer needs before they act.
- Anticipatory shipping uses AI to supply the customer with the product based on preferences.
- "Segment of one" means tracking customer preferences/tailoring products/ads to that customer.
- Younger generations prefer digitally driven solutions.
Targeting
- The next step is identifying attractive segments where marketers invest marketing resources.
- Selected segments known as target markets.
- Targeting strategy involves:
- Evaluating market segments
- Developing segment profiles
- Choosing a targeting strategy
Step 1: Evaluate Market Segments
- Members have similar wants/needs, different from other segments.
- Measurable size and purchasing power.
- Large enough to be profitable.
- Effectively reachable by marketing communications.
- Needs satisfied better than competition.
Step 2: Develop Segment Profiles
- Segment profiles detail the typical customers within a segment
- Include: demographic, location, lifestyle, product/usage characteristics.
- Personas, fictional characters representing the users within each segment.
Step 3: Choose Targeting Strategy
- Undifferentiated: Broad spectrum of people, focuses on economies of scale.
- Differentiated: Multiple products for each customer group with different needs.
- Concentrated: One or more products for a single segment.
- Customized: Products tailored to individual customers (e.g., personal/professional services).
- Mass Customization: Modifying basic product to meet an individual customer's needs and tastes.
Positioning
- Positioning involves marketers developing a marketing strategy to influence how a market segment perceives a good/service relative to competitors.
- Steps in positioning:
- Analyze competitors' positions
- Define your competitive advantage (reason why customers perceive your product as better)
- Finalize marketing mix (product, price, place, promotions)
- Evaluate responses/modify as needed.
Step 1: Analyze Competitors' Positions
- Understanding positioning of direct and indirect competitors.
- Evaluating your product's benefits compared to competitors.
Step 2: Define Your Competitive Advantage
- Providing reasons why consumers will perceive your product as better.
- Defining a positioning statement—internally developed & maintained.
- Aligning successful brand positioning with company's competitive advantage(s).
Step 3: Finalize the Marketing Mix
- Marketing elements support distinctive brand image and value proposition.
- Mix elements (product, price, place, promotion) match selected segment(s).
Step 4: Evaluate Responses and Modify as Needed
- Repositioning is establishing a new position in response to market changes.
- Brand image changes and repositioning may breathe new life into "retro" brands. Perceptual maps
Perceptual Maps
- Visual representations that illustrate how brands are perceived in a market.
- Show attributes and how one perceives one brand versus another (e.g., in the case of automobile brands).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers Lecture 3 of the International Business Marketing course, focusing on segmentation, targeting, and positioning strategies. You will explore the essential steps in the target marketing process and understand the different approaches to market segmentation. Test your knowledge and understanding of how effective segmentation can contribute to successful marketing strategies.
