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Market segmentation is the act of dividing a market into distinct groups of buyers who have similar needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
False
Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to serve.
True
Differentiation involves creating a market offering to provide customer value similar to that provided by competitors.
False
Positioning consists of carving out a unique space for the market offering in the minds of target customers.
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There is a single way to segment a market for consumer marketing.
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True or false: More-for-more positioning involves providing the most basic product or service and charging a higher price to cover the higher costs.
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True or false: Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.
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The major segmentation bases for consumer marketing include geographic, demographic, psychographic, and behavioral.
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True or false: The full positioning of a brand is called the brand's value proposition.
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True or false: The same for less positioning involves offering the same for less price.
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True or false: Communicable difference is not visible to buyers.
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True or false: More for less positioning involves offering less for more.
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Gender and gender identity have never been used for marketing clothing, cosmetics, toys, and magazines.
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Income segmentation is rarely used for products like automobiles, clothing, and luxury goods.
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Psychographic segmentation does not divide buyers based on lifestyle or personality characteristics.
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Behavioral segmentation categorizes buyers based only on their responses to a product.
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Occasion segmentation does not group buyers based on when they get the idea to buy, make purchases, or use items.
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Market segments do not need to be measurable, accessible, substantial, differentiable, and actionable to be useful.
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Market segmentation involves dividing the market into geographic, demographic, psychographic, and behavioral segments.
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Companies can choose from five winning value propositions: more for more, more for the same, the same for less, less for much less, or more for less.
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Designing a customer value–driven marketing strategy involves segmentation, market targeting, differentiation, and positioning.
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Geographic segmentation divides the market into different geographical units, and companies are increasingly localizing their products and services.
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Demographic segmentation divides the market based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
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Age and life-cycle stage segmentation is used by some companies to offer different products or marketing approaches for different age and life-cycle groups.
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Concentrated marketing strategy involves targeting a larger share of one or a few smaller segments or niches, rather than a small share of a large market.
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Local marketing involves tailoring brands and marketing to the needs and wants of global customer segments.
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Factors influencing the choice of a market-targeting strategy include company resources, product variability, and competitors' marketing strategies.
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Product positioning is how a product is defined by marketers on important attributes and the place it occupies in marketers' minds relative to competing products.
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Positioning maps show consumer perceptions of brands versus competing products on important buying dimensions, aiding in differentiation and positioning strategies.
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Marketers must understand customer needs and deliver more customer value better than competitors to build profitable relationships with target customers and gain competitive advantage.
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Study Notes
Marketing Targeting Strategies
- Differentiated marketing targets several market segments and designs separate offers for each, as exemplified by InterContinental Hotels Group (IHG) with its 16 brands grouped into four collections.
- Concentrated marketing strategy involves going after a larger share of one or a few smaller segments or niches, instead of a small share of a large market.
- Micromarketing tailors products and marketing programs to the needs of specific individuals and local customer segments, including local marketing and individual marketing.
- Local marketing involves tailoring brands and marketing to the needs and wants of local customer segments, such as cities, neighborhoods, and specific stores.
- Individual marketing, or one-to-one marketing, tailors products and marketing programs to the needs and preferences of individual customers.
- Factors influencing the choice of a market-targeting strategy include company resources, product variability, product life-cycle stage, market variability, and competitors' marketing strategies.
- Socially responsible targeting requires marketers to consider not just whether targeted consumers buy and like their products, but also whether they use them wisely.
- Product positioning is how a product is defined by consumers on important attributes and the place it occupies in consumers' minds relative to competing products.
- Positioning maps show consumer perceptions of brands versus competing products on important buying dimensions, aiding in differentiation and positioning strategies.
- The differentiation and positioning task consists of three steps: identifying differentiating competitive advantages, choosing the right competitive advantages, and selecting an overall positioning strategy.
- Marketers must understand customer needs and deliver more customer value better than competitors to build profitable relationships with target customers and gain competitive advantage.
- Some marketers believe in aggressively promoting only one benefit to the target market, as buyers tend to remember the "number one" better, especially in an overcommunicated society.
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Description
Test your knowledge of marketing targeting strategies with this quiz. Explore different approaches such as differentiated, concentrated, and micromarketing, and understand the importance of product positioning and differentiation. Learn about socially responsible targeting and the factors influencing market-targeting strategy choices.
