Podcast
Questions and Answers
Which of the following is NOT explicitly outlined as a learning objective related to segmentation, targeting, and positioning?
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?
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?
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?
What core question does implementing a positioning strategy directly address?
Which factor is LEAST relevant when evaluating the 'attractiveness' of a particular market segment?
Which factor is LEAST relevant when evaluating the 'attractiveness' of a particular market segment?
What is the foundational step that guides the segmentation strategy for a company?
What is the foundational step that guides the segmentation strategy for a company?
Which segmentation base focuses on consumers' values, attitudes, and lifestyles?
Which segmentation base focuses on consumers' values, attitudes, and lifestyles?
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?
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?
What form of segmentation is MOST useful for companies whose products satisfy needs that vary by local culture or climate?
What form of segmentation is MOST useful for companies whose products satisfy needs that vary by local culture or climate?
Which of the following represents a behavioural segmentation approach?
Which of the following represents a behavioural segmentation approach?
A luxury brand is trying to segment its market. Which of the following psychographic variables would be MOST relevant?
A luxury brand is trying to segment its market. Which of the following psychographic variables would be MOST relevant?
A company that sells winter clothing is using geographic segmentation. Which of the following is the MOST likely geographic variable they will use?
A company that sells winter clothing is using geographic segmentation. Which of the following is the MOST likely geographic variable they will use?
A new streaming service wants to build a marketing campaign emphasizing ease of use and a diverse catalog. Which segmentation base should they use?
A new streaming service wants to build a marketing campaign emphasizing ease of use and a diverse catalog. Which segmentation base should they use?
For which of the following product categories is geographic segmentation likely to be MOST effective?
For which of the following product categories is geographic segmentation likely to be MOST effective?
Which of the following BEST exemplifies psychographic segmentation?
Which of the following BEST exemplifies psychographic segmentation?
A company producing high-endurance outdoor gear is MOST likely targeting which VALS segment?
A company producing high-endurance outdoor gear is MOST likely targeting which VALS segment?
Which VALS segment is LEAST likely to respond to marketing emphasizing cutting-edge technology and innovation?
Which VALS segment is LEAST likely to respond to marketing emphasizing cutting-edge technology and innovation?
A marketing campaign emphasizing patriotism, tradition, and community values would resonate MOST strongly with which VALS segment?
A marketing campaign emphasizing patriotism, tradition, and community values would resonate MOST strongly with which VALS segment?
Which of the following is NOT a typical variable used in demographic segmentation?
Which of the following is NOT a typical variable used in demographic segmentation?
For a new line of luxury watches, which VALS segment would be the MOST promising target market?
For a new line of luxury watches, which VALS segment would be the MOST promising target market?
A non-profit organization focused on providing basic services is MOST likely targeting which VALS segment?
A non-profit organization focused on providing basic services is MOST likely targeting which VALS segment?
Which VALS type is MOST likely to be heavily influenced by peer groups in their purchasing decisions?
Which VALS type is MOST likely to be heavily influenced by peer groups in their purchasing decisions?
A marketer who wants to appeal to a consumer's self-concept is MOST likely trying to influence which aspect of their behavior?
A marketer who wants to appeal to a consumer's self-concept is MOST likely trying to influence which aspect of their behavior?
What is the primary function of the VALSâ„¢ questionnaire and program according to the content?
What is the primary function of the VALSâ„¢ questionnaire and program according to the content?
Which segmentation approach focuses on grouping consumers based on where they live, their demographic characteristics, and their lifestyle?
Which segmentation approach focuses on grouping consumers based on where they live, their demographic characteristics, and their lifestyle?
In the context of behavioral segmentation, what does 'usage rate' refer to?
In the context of behavioral segmentation, what does 'usage rate' refer to?
Which of the following is a focus of benefit segmentation?
Which of the following is a focus of benefit segmentation?
What characteristic is most indicative of the 'Urban Bohemia' PSYTE cluster?
What characteristic is most indicative of the 'Urban Bohemia' PSYTE cluster?
Which of the following best describes the 'Suburban Affluence' (S1) PSYTE cluster?
Which of the following best describes the 'Suburban Affluence' (S1) PSYTE cluster?
What societal contribution is primarily associated with the 'Asian Heights' PSYTE cluster?
What societal contribution is primarily associated with the 'Asian Heights' PSYTE cluster?
What distinguishes behavioral segmentation from geodemographic segmentation?
What distinguishes behavioral segmentation from geodemographic segmentation?
What key demographic trait characterizes household maintainers under 25 mentioned in the provided content?
What key demographic trait characterizes household maintainers under 25 mentioned in the provided content?
Besides family prospects and employment, what specific benefit do families bring to local economies?
Besides family prospects and employment, what specific benefit do families bring to local economies?
What tool is identified as being widely utilized for geodemographic segmentation?
What tool is identified as being widely utilized for geodemographic segmentation?
In the context of segment attractiveness, what action is performed in Step 3?
In the context of segment attractiveness, what action is performed in Step 3?
According to the content, which factor helps determine if segments are identifiable?
According to the content, which factor helps determine if segments are identifiable?
When referring to the qualities that La Senza must ensure a new segment has, what does being 'reachable' primarily entail?
When referring to the qualities that La Senza must ensure a new segment has, what does being 'reachable' primarily entail?
Which of the following questions could marketers ask to find out if segments are unique?
Which of the following questions could marketers ask to find out if segments are unique?
Which question helps determine if each segment requires a unique marketing mix?
Which question helps determine if each segment requires a unique marketing mix?
Flashcards
Market Segmentation
Market Segmentation
The process of dividing a market into distinct groups of buyers with different needs or behaviors.
Targeting Criteria
Targeting Criteria
Factors used to determine if a market segment is attractive for targeting, such as size, growth potential, and competition.
Undifferentiated Targeting
Undifferentiated Targeting
A strategy that targets a broad market with a single marketing mix, ignoring segment differences.
Differentiated Targeting
Differentiated Targeting
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Positioning
Positioning
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Geographic Segmentation
Geographic Segmentation
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Demographic Segmentation
Demographic Segmentation
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Psychographic Segmentation
Psychographic Segmentation
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The VALS Framework
The VALS Framework
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Innovators
Innovators
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Believers
Believers
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Achievers
Achievers
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Experiencers
Experiencers
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Survivors
Survivors
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Strivers
Strivers
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Product Location Strategy
Product Location Strategy
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Segmentation-Targeting-Position Process
Segmentation-Targeting-Position Process
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Overall Strategy Objectives
Overall Strategy Objectives
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Behavioral Segmentation
Behavioral Segmentation
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Benefits Sought
Benefits Sought
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VALSâ„¢ Questionnaire
VALSâ„¢ Questionnaire
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Occasional Segmentation
Occasional Segmentation
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Geodemographic Segmentation
Geodemographic Segmentation
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PSYTE Clusters
PSYTE Clusters
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Urban Bohemia
Urban Bohemia
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Suburban Affluence
Suburban Affluence
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Asian Heights
Asian Heights
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Identifiable Segment
Identifiable Segment
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Reachable Segment
Reachable Segment
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Responsive Segment
Responsive Segment
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Substantial Segment
Substantial Segment
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Profitable Segment
Profitable Segment
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Unique Marketing Mix
Unique Marketing Mix
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Market Evaluation Criteria
Market Evaluation Criteria
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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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