Marketing Chapter 6: Segmentation & Targeting
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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 VALS™ 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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    VALS™ 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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    Marketing Segmentation, Targeting, & Positioning (PDF)

    Description

    Explore the essential concepts of market segmentation, targeting, and positioning in this in-depth quiz based on Chapter 6. Assess your understanding of the different segmentation bases like geographic and demographic, as well as targeting strategies. Perfect for marketing students looking to consolidate their knowledge.

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