Marketing Chapter 6: Segmentation & Targeting

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Questions and Answers

Which of the following is NOT explicitly outlined as a learning objective related to segmentation, targeting, and positioning?

  • Explaining various targeting strategies, including undifferentiated, differentiated, concentrated, and micromarketing.
  • Detailing specific strategies for pricing products within targeted segments. (correct)
  • Identifying the criteria for assessing segment attractiveness and determining if it's worth pursuing.
  • Describing the bases marketers use to segment a market.

In the context of marketing strategies, which of the following sequences accurately represents the correct order of the STP (Segmentation, Targeting, and Positioning) process?

  • Segmentation, Positioning, Targeting
  • Segmentation, Targeting, Positioning (correct)
  • Targeting, Segmentation, Positioning
  • Positioning, Targeting, Segmentation

A company decides to focus its marketing efforts on a very specific group of consumers with similar characteristics. Which targeting strategy aligns MOST closely with this approach?

  • Concentrated Targeting (correct)
  • Differentiated Targeting
  • Micromarketing
  • Undifferentiated Targeting

What core question does implementing a positioning strategy directly address?

<p>How do we want consumers to perceive our product relative to competitors? (D)</p> Signup and view all the answers

Which factor is LEAST relevant when evaluating the 'attractiveness' of a particular market segment?

<p>The personal preferences of the company's CEO. (B)</p> Signup and view all the answers

What is the foundational step that guides the segmentation strategy for a company?

<p>Establishing overall strategy and objectives derived from the mission statement. (A)</p> Signup and view all the answers

Which segmentation base focuses on consumers' values, attitudes, and lifestyles?

<p>Psychographic (C)</p> Signup and view all the answers

A company is determining how to approach segmentation for its new line of electric vehicles. Which of the following should be considered the LEAST relevant to the segmentation strategy?

<p>The colour preferences of the company's CEO. (B)</p> Signup and view all the answers

What form of segmentation is MOST useful for companies whose products satisfy needs that vary by local culture or climate?

<p>Geographic. (D)</p> Signup and view all the answers

Which of the following represents a behavioural segmentation approach?

<p>Targeting customers based on their product usage rate. (D)</p> Signup and view all the answers

A luxury brand is trying to segment its market. Which of the following psychographic variables would be MOST relevant?

<p>Lifestyle. (D)</p> Signup and view all the answers

A company that sells winter clothing is using geographic segmentation. Which of the following is the MOST likely geographic variable they will use?

<p>Climate. (D)</p> Signup and view all the answers

A new streaming service wants to build a marketing campaign emphasizing ease of use and a diverse catalog. Which segmentation base should they use?

<p>A combination of behavioural (benefits sought) and demographic (age, income) segmentation. (A)</p> Signup and view all the answers

For which of the following product categories is geographic segmentation likely to be MOST effective?

<p>A line of winter clothing with designs tailored to regional climate variations. (D)</p> Signup and view all the answers

Which of the following BEST exemplifies psychographic segmentation?

<p>Marketing organic foods to health-conscious consumers who value sustainability. (A)</p> Signup and view all the answers

A company producing high-endurance outdoor gear is MOST likely targeting which VALS segment?

<p>Experiencers (C)</p> Signup and view all the answers

Which VALS segment is LEAST likely to respond to marketing emphasizing cutting-edge technology and innovation?

<p>Survivors (B)</p> Signup and view all the answers

A marketing campaign emphasizing patriotism, tradition, and community values would resonate MOST strongly with which VALS segment?

<p>Believers (A)</p> Signup and view all the answers

Which of the following is NOT a typical variable used in demographic segmentation?

<p>Lifestyle (D)</p> Signup and view all the answers

For a new line of luxury watches, which VALS segment would be the MOST promising target market?

<p>Achievers (B)</p> Signup and view all the answers

A non-profit organization focused on providing basic services is MOST likely targeting which VALS segment?

<p>Survivors (B)</p> Signup and view all the answers

Which VALS type is MOST likely to be heavily influenced by peer groups in their purchasing decisions?

<p>Strivers (A)</p> Signup and view all the answers

A marketer who wants to appeal to a consumer's self-concept is MOST likely trying to influence which aspect of their behavior?

<p>Their desire to emulate a certain lifestyle. (C)</p> Signup and view all the answers

What is the primary function of the VALSâ„¢ questionnaire and program according to the content?

<p>To categorize individuals into distinct lifestyle and value segments (C)</p> Signup and view all the answers

Which segmentation approach focuses on grouping consumers based on where they live, their demographic characteristics, and their lifestyle?

<p>Geodemographic segmentation (A)</p> Signup and view all the answers

In the context of behavioral segmentation, what does 'usage rate' refer to?

<p>The quantity of a product or service a consumer uses within a given period (B)</p> Signup and view all the answers

Which of the following is a focus of benefit segmentation?

<p>Dividing the market based on the different values consumers seek from purchasing a product (D)</p> Signup and view all the answers

What characteristic is most indicative of the 'Urban Bohemia' PSYTE cluster?

<p>Significant engagement in cultural and artistic employment (B)</p> Signup and view all the answers

Which of the following best describes the 'Suburban Affluence' (S1) PSYTE cluster?

<p>A cluster that represents both old and new wealth, often with an older skew and many empty nests. (A)</p> Signup and view all the answers

What societal contribution is primarily associated with the 'Asian Heights' PSYTE cluster?

<p>Contributing to wealth creation through entrepreneurial endeavors and hard work over generations (A)</p> Signup and view all the answers

What distinguishes behavioral segmentation from geodemographic segmentation?

<p>Behavioral segmentation categorizes consumers based on actions like purchase patterns, while geodemographic segmentation combines location, demographics and lifestyles. (D)</p> Signup and view all the answers

What key demographic trait characterizes household maintainers under 25 mentioned in the provided content?

<p>Many possess college degrees. (B)</p> Signup and view all the answers

Besides family prospects and employment, what specific benefit do families bring to local economies?

<p>Contribution to local economic growth. (B)</p> Signup and view all the answers

What tool is identified as being widely utilized for geodemographic segmentation?

<p>PSYTE (A)</p> Signup and view all the answers

In the context of segment attractiveness, what action is performed in Step 3?

<p>Segment evaluation (A)</p> Signup and view all the answers

According to the content, which factor helps determine if segments are identifiable?

<p>Market Composition: determining which individuals comprise a target market. (C)</p> Signup and view all the answers

When referring to the qualities that La Senza must ensure a new segment has, what does being 'reachable' primarily entail?

<p>Effective market coverage to facilitate product knowledge and accessibility. (D)</p> Signup and view all the answers

Which of the following questions could marketers ask to find out if segments are unique?

<p>To what extent do segments share traits? (D)</p> Signup and view all the answers

Which question helps determine if each segment requires a unique marketing mix?

<p>Does each segment have similar needs? (C)</p> Signup and view all the answers

Flashcards

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs or behaviors.

Targeting Criteria

Factors used to determine if a market segment is attractive for targeting, such as size, growth potential, and competition.

Undifferentiated Targeting

A strategy that targets a broad market with a single marketing mix, ignoring segment differences.

Differentiated Targeting

A strategy that targets several market segments with different marketing mixes for each.

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Positioning

The process of establishing a brand's image and identity in the minds of consumers relative to competitors.

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Geographic Segmentation

Dividing a market based on geographical areas and locations.

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Demographic Segmentation

Dividing a market by characteristics like age, gender, and income.

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Psychographic Segmentation

Segmenting based on consumers' values, attitudes, and lifestyles.

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The VALS Framework

A model categorizing consumers based on values and lifestyles.

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Innovators

Successful individuals who are sophisticated and embrace new ideas.

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Believers

Conservative consumers who value family and community traditions.

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Achievers

Goal-oriented professionals focused on career and family commitment.

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Experiencers

Enthusiastic consumers seeking variety and excitement in their lives.

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Survivors

Cautious consumers who are risk-averse and prefer routine.

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Strivers

Trend-driven consumers who desire success and live in the moment.

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Product Location Strategy

A strategy for deciding where to sell and distribute products.

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Segmentation-Targeting-Position Process

A marketing process to identify and target specific market segments.

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Overall Strategy Objectives

Goals aligned with a company's mission statement.

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Behavioral Segmentation

Segmenting based on consumer behavior, such as benefits sought and usage.

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Benefits Sought

Reasons customers select products based on specific needs.

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VALSâ„¢ Questionnaire

A tool used to categorize consumers based on their values and lifestyles.

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Occasional Segmentation

Segmenting markets by frequency of product usage.

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Geodemographic Segmentation

Segmentation based on geographic, demographic, and lifestyle characteristics.

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PSYTE Clusters

Classification of consumers into clusters based on various demographic factors.

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Urban Bohemia

A PSYTE cluster characterized by a young, diverse population involved in arts and culture.

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Suburban Affluence

A PSYTE cluster representing affluence with both old and new wealth in suburban areas.

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Asian Heights

A PSYTE cluster representing affluence among Asian ancestries in suburban areas.

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Identifiable Segment

A market segment that can be recognized and described distinctly from others.

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Reachable Segment

A segment that can be effectively contacted and engaged by marketing efforts.

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Responsive Segment

A market segment that reacts positively to marketing efforts or stimuli.

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Substantial Segment

A market segment that is large enough to be profitable.

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Profitable Segment

A market segment that generates significant profit for the business.

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Unique Marketing Mix

Tailoring the marketing approach specifically for a distinct market segment.

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Market Evaluation Criteria

Factors to assess market segments, including reachability, responsiveness, and profitability.

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Study Notes

Chapter 6: Segmentation, Targeting, and Positioning

  • This chapter covers the process of segmenting a market, selecting target markets, and positioning products.
  • Key learning objectives include describing market segmentation bases, identifying segment attractiveness criteria, explaining targeting strategies (undifferentiated, differentiated, concentrated, or micromarketing), and describing positioning strategies.

Step 1: Establish Overall Strategy or Objectives

  • The first step aligns with the organization's mission statement and current state.

Step 2: Segmentation Bases

  • Geographic: based on continent, regions, countries, cities, neighborhoods, and climate.
  • Demographic: age, gender, income, education, occupation, race, marital status, family size, lifecycle, and ethnicity.
  • Psychographic: lifestyle, personality/self-concept, and social class.
  • Behavioral: benefits sought, usage rate, loyalty, and occasion.

Step 3: Evaluate Segment Attractiveness

  • Identifiable: identifying who is within the market; ensuring the segments are unique; and that each segment requires a unique marketing mix
  • **Reachable:**Knowing the product exists; understanding what the product can do; and recognizing how to buy the product
  • Substantial and Profitable: segment size; potential for growth; and profitability potential.
  • Responsive: how customers react to the organization's offering; and whether they will accept the value proposition; customer reactions to the offering and acceptance of the value proposition

Step 4: Select Target Market

  • A SWOT analysis helps guide decisions about which market to pursue.
  • The attractiveness of the opportunity is assessed.
  • The organization's competencies are considered.

Targeting Strategies

  • Undifferentiated (Mass Marketing): targets the entire market with a single marketing mix.
  • Differentiated: targets different market segments with a unique marketing mix for each.
  • Concentrated (Niche): focuses all of an organization's energies on a single target market.
  • Micromarketing (One-to-one): tailors products and services to meet individual needs.
  • Examples of different targeting strategies include Condé Nast's various magazines and Newton Running's niche focus.*

Step 5: Identify & Develop Positioning Strategy

  • Value: the relationship between price and quality.
  • Product Attributes: concentrating on the products most important attributes for the target market.
  • Benefits & Symbolism: emphasizing the benefits of the brand as well as its psychological meaning to the consumer.
  • Competition: choosing to position the product against a specific rival or an entire product category.
  • Market Leadership: a method for establishing products as market leaders.

Positioning By Using Perceptual Mapping

  • Identify the market's ideal points.
  • Identify competitors' positions.
  • Determine consumer preferences.
  • Select a position.
  • Monitor the positioning strategy.

Repositioning

  • Realignment of the brand's core in response to changing market trends.

Geodemographic Segmentation

  • Combination of geographic, demographic, and lifestyle characteristics to segment a market.
  • Clustering methods allow for segment analysis based on those different factors.
  • Examples include PSYTE, which helps marketers analyze data for geodemographic segmentation.*

VALS Types

  • A tool to help understand consumer characteristics.
  • Thinkers & Makers are examples of consumer segments identified.

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