Podcast
Questions and Answers
Why do brands segment the market?
Why do brands segment the market?
What is the process of TARGETING in the STP model?
What is the process of TARGETING in the STP model?
What does DIFFERENTIATION refer to in marketing?
What does DIFFERENTIATION refer to in marketing?
Positioning in marketing refers to which of the following?
Positioning in marketing refers to which of the following?
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Which step comes after segmenting the market according to the STP model?
Which step comes after segmenting the market according to the STP model?
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Which of the following is NOT a primary segmentation variable for business markets?
Which of the following is NOT a primary segmentation variable for business markets?
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What characteristic defines a target market?
What characteristic defines a target market?
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Which of the following is a requirement for effective segmentation?
Which of the following is a requirement for effective segmentation?
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Why is the urgency of demand considered a situational factor in market segmentation?
Why is the urgency of demand considered a situational factor in market segmentation?
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What does the 'user/non-user status' refer to in operating variables?
What does the 'user/non-user status' refer to in operating variables?
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What is a primary advantage that big companies have when targeting market segments?
What is a primary advantage that big companies have when targeting market segments?
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Which of the following factors indicates the structural attractiveness of a market segment?
Which of the following factors indicates the structural attractiveness of a market segment?
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What aspect is made actionable in effective program design for market segmentation?
What aspect is made actionable in effective program design for market segmentation?
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Which statement accurately describes a differentiable segment?
Which statement accurately describes a differentiable segment?
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What does undifferentiated marketing primarily focus on?
What does undifferentiated marketing primarily focus on?
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How does differentiated marketing primarily create value?
How does differentiated marketing primarily create value?
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Why is evaluating segment size and growth critical for targeting?
Why is evaluating segment size and growth critical for targeting?
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What is a downside of targeting every buyer as a separate market segment?
What is a downside of targeting every buyer as a separate market segment?
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Which type of marketing involves using several marketing plans for different segments?
Which type of marketing involves using several marketing plans for different segments?
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What is a potential issue faced by undifferentiated marketers?
What is a potential issue faced by undifferentiated marketers?
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What is one of the main reasons smaller companies may prefer targeting smaller segments?
What is one of the main reasons smaller companies may prefer targeting smaller segments?
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What is considered the worst situation for a brand in terms of market competition?
What is considered the worst situation for a brand in terms of market competition?
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Which of the following best describes product positioning?
Which of the following best describes product positioning?
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What is a Unique Selling Proposition (USP)?
What is a Unique Selling Proposition (USP)?
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Which factor is NOT part of the criteria for selecting the right competitive advantages?
Which factor is NOT part of the criteria for selecting the right competitive advantages?
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What is meant by 'the brand is created in the mind'?
What is meant by 'the brand is created in the mind'?
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Which source of differentiation is exemplified by Trina's lack of carbonation?
Which source of differentiation is exemplified by Trina's lack of carbonation?
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Choosing the right competitive advantage involves selecting attributes that are all of the following EXCEPT:
Choosing the right competitive advantage involves selecting attributes that are all of the following EXCEPT:
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Which channel differentiation example was given in the context provided?
Which channel differentiation example was given in the context provided?
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What does concentrated marketing focus on?
What does concentrated marketing focus on?
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Why is micromarketing beneficial for companies?
Why is micromarketing beneficial for companies?
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Which factor should be considered when choosing a targeting strategy?
Which factor should be considered when choosing a targeting strategy?
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What type of marketing utilizes cocreation with customers?
What type of marketing utilizes cocreation with customers?
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For what type of products is undifferentiated marketing most suitable?
For what type of products is undifferentiated marketing most suitable?
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What is a characteristic of concentrated marketing?
What is a characteristic of concentrated marketing?
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What could make undifferentiated marketing a risky strategy?
What could make undifferentiated marketing a risky strategy?
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What role does product life-cycle play in selecting a targeting strategy?
What role does product life-cycle play in selecting a targeting strategy?
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What positioning strategy does Aliada represent?
What positioning strategy does Aliada represent?
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What does the term 'more for the same' in positioning imply?
What does the term 'more for the same' in positioning imply?
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Which brand exemplifies the 'more for more' positioning strategy?
Which brand exemplifies the 'more for more' positioning strategy?
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How is 'the same for less' characterized in the content?
How is 'the same for less' characterized in the content?
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What is a challenge of the 'more for less' positioning strategy?
What is a challenge of the 'more for less' positioning strategy?
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What is crucial in developing a positioning statement?
What is crucial in developing a positioning statement?
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Which of the following brands is not aligned with the 'more for more' strategy?
Which of the following brands is not aligned with the 'more for more' strategy?
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What is essential for a brand to be classified as luxury over time?
What is essential for a brand to be classified as luxury over time?
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Study Notes
Introduction
- Segmenting a market is crucial because serving a whole market is difficult. Customers are often numerous, geographically dispersed, and have diverse needs and buying habits.
- Identifying profitable segments within a market is essential for effective marketing strategies. Companies need to identify the parts of the market they can serve best and most profitably.
- Segmentation involves dividing the market into groups based on characteristics like consumer needs, habits, and buying practices.
Market Segmentation
- Market segmentation is dividing a market into smaller segments with distinct needs, characteristics, or behaviors.
- Key variables for segmenting consumers include wants, resources, locations, and buying attitudes.
- Market segmentation helps companies divide large, diverse markets into smaller, more manageable groups.
Segmentation Variables
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Geographic: Dividing customers by geographic units (nations, regions, etc.).
- Example: Tesco Metro (city centers, high streets), Tesco Express (neighborhood stores)
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Demographic: Segmenting by age, gender, family size, income, occupation, education, religion, race, and nationality.
- Examples: L'Oréal products for different genders, age groups.
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Psychographic: Segmenting consumers based on social class, lifestyle, and personality characteristics.
- Choosing a motorbike based on lifestyle/personality.
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Behavioral: Segmenting based on customer knowledge, attitudes, uses, or responses to a product.
- Special products for different user statuses (occasions, user status, usage rate etc.)
Market Targeting
- Target marketing is selecting the segment(s) a company wants to serve.
- Evaluating segments involves assessing size, growth potential, and structural attractiveness to find the best fit for a company's goals.
- Companies must consider whether the segment they are targeting is worth it for all the resources needed.
Differentiation and Positioning
- Differentiation involves creating value propositions that distinguish a brand from competitors.
- Effective differentiation and positioning helps create a unique place in the minds of target customers compared to competitors' products.
- The three steps: identify sources of differentiation, choose the right competitive advantages, select an overall positioning strategy.
- Methods to differentiate: products, services, channels, people, image.
Different Types of Marketing Strategies
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Undifferentiated: Treating the entire market as one segment (e.g., mass marketing).
- Inditex, offering similar products for all customers.
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Differentiated: Targeting several segments with different offers (e.g., customized products).
- Companies with different products for different segments – like different types of automobiles.
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Concentrated: Targeting a single segment with a specialized offer.
- Successfully targeting and addressing a niche market, like a brand of tonic water that is targeted for a specific drink.
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Micromarketing: Tailoring marketing to individual customer needs.
- Personalizing products based on personalized requests, like customizing clothes with names and logos.
Choosing a Targeting Strategy
- Companies choose a targeting strategy based on their resources, the variability of their products, and the life cycle of the market (introductory/maturity).
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Description
This quiz explores the fundamental concepts of market segmentation. It covers the importance of dividing markets into distinct segments, key variables for segmentation, and the various types used in marketing strategies. Understand how companies can better target their customers based on diverse needs and characteristics.
