Segmentation, Targeting & Positioning

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Questions and Answers

Which of these is NOT a requirement for an effective market segment?

  • Substantial
  • Accessibility
  • Measurability (correct)
  • Distinctiveness

What is the main goal of the market segmentation process?

  • To identify and understand the needs of each individual customer.
  • To develop a marketing mix that appeals to all customers in the market.
  • To increase the profitability of the company by selling more products to existing customers.
  • To divide the market into groups with similar characteristics and needs. (correct)

Which of these is an example of product differentiation?

  • Creating a new advertising campaign for an existing product. (correct)
  • Expanding into a new geographic market.
  • Developing a new product to meet a specific need.
  • Offering a lower price for a product.

What is the primary benefit of market segmentation for a company?

<p>It allows companies to target their marketing efforts more effectively. (D)</p> Signup and view all the answers

Which of the following is NOT a factor influencing brand loyalty according to the text?

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

Why is it important for a company to understand different purchase combinations that satisfy needs in a market?

<p>To identify the most profitable customer segments. (D)</p> Signup and view all the answers

Which of the following statements best reflects the shift in marketing strategy from the 1980s to today?

<p>From focusing on mass marketing to targeting specific customer segments. (B)</p> Signup and view all the answers

What is the primary goal of 'occasion response' segmentation?

<p>Determining which situations lead to increased product consumption (A)</p> Signup and view all the answers

What is the main difference between market segmentation and product differentiation?

<p>Market segmentation divides customers into groups, while product differentiation focuses on making a product unique. (A)</p> Signup and view all the answers

Which segment in the toothpaste market segmentation table prioritizes price as their primary benefit?

<p>The Independent Segment (B)</p> Signup and view all the answers

Which segment in the toothpaste market segmentation table is most likely to favor brands like Colgate and Aim?

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

According to the provided content, why might a company decide to not adopt a particular market segment?

<p>The segment is not large enough or profitable enough to serve in the long run. (C)</p> Signup and view all the answers

What is the key difference between mass marketing and targeting in the context of the provided text?

<p>Mass marketing aims for a large audience, while targeting concentrates on specific customer segments. (B)</p> Signup and view all the answers

What is the primary characteristic of 'The Worriers' segment in the toothpaste market segmentation table?

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

What is the main benefit sought by 'The Sociables' segment in the toothpaste market segmentation table?

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

Which of the following is a common characteristic of the 'The Independent Segment' in the toothpaste market segmentation table?

<p>They are heavy users of toothpaste. (D)</p> Signup and view all the answers

What is a key aspect of the 'Positioning Process' discussed in the excerpt?

<p>Defining the unique selling proposition of a product (B)</p> Signup and view all the answers

What is the primary basis for market segmentation according to the content?

<p>Consumer Characteristics Approach (B)</p> Signup and view all the answers

Which of the following is NOT a demographic factor mentioned for market segmentation?

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

What challenge is associated with maintaining adequate stock for different consumer groups?

<p>Stock and storage problems (D)</p> Signup and view all the answers

Which age group is specifically mentioned as a potential market segment?

<p>All of the above (D)</p> Signup and view all the answers

What does the Consumer Characteristics Approach primarily focus on?

<p>Basic characteristics of consumers (D)</p> Signup and view all the answers

Why is market segmentation considered essential in marketing planning?

<p>It helps identify distinct groups of buyers. (B)</p> Signup and view all the answers

Which factor distinguishes male and female buying behavior in market segmentation?

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

What limitation can impact a manager's ability to segment the market effectively?

<p>Inability to segment meaningfully (B)</p> Signup and view all the answers

What is the primary positioning focus of Honda Motorcycle & Scooter India?

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

Which brand is associated with the term 'the ultimate driving machine'?

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

What does the term 'Waku WakuDokiDoki' refer to in the context of Toyota's marketing?

<p>Adrenaline rush and pleasure from anticipation (C)</p> Signup and view all the answers

What unique feature does Vistara Airlines offer compared to other domestic airlines?

<p>Premium economy seating (C)</p> Signup and view all the answers

Which company was the first to introduce a portable PC?

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

What is the positioning strategy used by Dhara Oil in their marketing?

<p>Highlighting health benefits (D)</p> Signup and view all the answers

What does Ford India aim to achieve with its vehicle personalisation center?

<p>Provide tailored automotive features (B)</p> Signup and view all the answers

What does Jeep's slogan 'There's Only One' communicate about the brand?

<p>Uniqueness and leadership in the market (D)</p> Signup and view all the answers

What is the primary risk associated with a single-segment marketing strategy?

<p>The chosen segment may become nonviable. (B)</p> Signup and view all the answers

Which strategy involves moving to a closely related segment after achieving full market penetration in the initial segment?

<p>Adjacent segment strategy (A)</p> Signup and view all the answers

Which of the following is an example of a multi-segment strategy?

<p>Nike producing a variety of sports shoes. (D)</p> Signup and view all the answers

What is another term for the single-segment marketing strategy?

<p>Concentrated targeting strategy (D)</p> Signup and view all the answers

In a multi-segment strategy, what is required for each segment served?

<p>A separate marketing mix. (C)</p> Signup and view all the answers

Why might a business opt for a small segment strategy?

<p>Due to limited resources and capabilities. (B)</p> Signup and view all the answers

What defines differentiated marketing strategy?

<p>Targeting diverse segments with tailored marketing mixes. (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of the small segment strategy?

<p>Requires significant marketing investment. (D)</p> Signup and view all the answers

What does the content suggest is a key characteristic of 'Micromarketing'?

<p>Offering differentiated prices based on location and customer needs (C)</p> Signup and view all the answers

Which of the following is NOT mentioned as a factor influencing the need for targeting a market segment?

<p>Customer lifetime value (A)</p> Signup and view all the answers

According to the content, what is the main purpose of sub-segmentation?

<p>To identify and target specific customer groups with unique needs (D)</p> Signup and view all the answers

Which of the following online food delivery start-ups is positioned as focusing on quality of product?

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

Based on the text, which of the following is NOT a factor influencing the choice of targeting strategy?

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

The content suggests that Porter's Five-Forces Model is useful for:

<p>Assessing the attractiveness of a market segment (B)</p> Signup and view all the answers

What is the primary difference between 'segmentation' and 'sub-segmentation'?

<p>Segmentation focuses on broad customer groups while sub-segmentation targets smaller, more specific groups within those segments (C)</p> Signup and view all the answers

What does the text suggest is the primary motivation for online food delivery start-ups in Bangalore to cater to niche markets?

<p>Meeting the diverse needs and preferences of the Bangalore customer base (D)</p> Signup and view all the answers

Flashcards

Single-segment marketing

Focusing marketing efforts on one specific segment of the market.

Risks of single-segment strategy

High risk if the selected market segment becomes unviable.

Adjacent Segment Strategy

Targeting a closely related market segment after initial success.

Example of Adjacent Segment Strategy

Suzuki's step-by-step entry into various car segments in India.

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Multi-Segment Strategy

Serving multiple segments simultaneously with tailored approaches.

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Differentiated Marketing Strategy

Targeting distinct groups with separate marketing mixes.

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Small Segment Strategy

Focusing on a small market segment often overlooked by big players.

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Niche Strategy

Concentrated targeting of a very specific market segment.

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Market Segmentation

The sub-dividing of a market into homogeneous sub-sections of customers.

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Market Segmentation

Dividing a market into distinct groups based on characteristics.

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Segment Characteristics

Distinct buyer groups differ in media and message appeal.

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Variables in Segmentation

Factors used to maximize differences between market segments and minimize differences within them.

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Measurability

The ability to measure the number and size of customers within a segment.

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Personal Selling Complexity

Diverse segments necessitate complex personal selling strategies.

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Stock Maintenance Issues

Keeping adequate stock for various consumer needs is challenging.

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Substantial Segment

A market segment that is large and profitable enough for long-term serving.

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Consumer Characteristics Approach

Segmenting based on basic features like demographics and behavior.

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Distinctiveness

The degree to which a segment is clearly different from others in needs and characteristics.

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Accessibility

A segment that can be effectively reached and served by a marketer.

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Demographic Factors

Characteristics like age, sex, and income used for segmentation.

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Product Differentiation

Creating differences in products through features or marketing strategies to stand out in the market.

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Behavioral Segmentation

Understanding buyer behavior leads to targeted marketing.

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Age Group Categories

Market can be divided into Children, Young, Adults, Old.

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Importance of Segmentation

Understanding various customer needs to create meaningful segments for effective targeting and marketing strategies.

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Sub-Segmentation

Dividing markets into smaller, more defined groups to better meet unique customer needs.

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Micromarketing

Tailoring marketing efforts to suit specific customer preferences within a small segment.

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Targeting Strategy

The process of identifying and selecting specific segments to market to.

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Porter's Five-Forces Model

A framework used to analyze the competitive environment of a market segment.

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Market Homogeneity

The degree to which a market segment appears the same among consumers.

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Segment Attractiveness

Factors that determine the potential success and profitability of targeting a market segment.

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Customer Needs Matching

The ability to align products or services with specific demands of customers.

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Competitive Environment

The landscape of businesses providing similar products or services in a market.

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Loyalty Response

A segmentation approach focusing on retaining loyal customers and attracting new ones from rivals.

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Occasion Response

Segmentation based on situations that lead to increased consumption of products.

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Toothpaste Segmentation

Categorizing toothpaste consumers by benefits sought, demographics, behaviors, and brands.

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Principle Benefits Sought

The main advantages consumers aim for when choosing a product.

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Demographic Strengths

Characteristics of customers grouped by age, family size, or gender.

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Special Behavioral Characteristics

Unique habits or preferences that define a consumer segment's buying behaviors.

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Targeting

Selecting specific segments to focus marketing efforts on.

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Selection Criteria for Targeting

The standards used to determine which market segments to target.

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Positioning

Creating a distinct image of a product in consumers' minds relative to competitors.

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Positioning Process

Steps taken to define and communicate a brand's unique value proposition.

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Product User

A target market focused on intrinsic traits of products, like creativity in Crane’s stationery.

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Product Class

A category that defines a product's quality and features, exemplified by BMW's branding.

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Dreams

Concept of marketing around aspirations; Honda sells two-wheelers as enablers of dreams.

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Completeness

Positioning that emphasizes a holistic or all-encompassing approach, like Raymond's 'complete man'.

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First-mover

The strategy of being the first in a market, illustrated by Compaq's portable PC introduction.

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Distribution

A tactic focusing on selling directly to consumers, as demonstrated by Dell's model.

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Waku Waku Doki Doki

A Japanese term reflecting excitement and thrill; used by Toyota for marketing its cars.

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Personalisation

Offering customized experiences or products; Ford's factory personalisation centre allows tailored cars.

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Study Notes

Segmentation, Targeting & Positioning

  • Segmentation: Dividing a heterogeneous market into homogeneous subgroups.
    • Key concept: Different needs exist within a market.
    • Successful marketers focus on specific subsets of consumers.
  • Targeting: Selecting the most attractive segments to focus on.
    • Factors include available resources, segment size, growth potential.
    • Target market: Subgroup chosen for focused marketing efforts.
  • Positioning: Creating a distinctive and desirable place in the customer's mind.
    • Differentiates a product/brand from competitors
    • Explains the product's uniqueness.
    • Focuses on customer's perceived value.

Meaning of Segmentation

  • Market segmentation is the process of dividing a heterogeneous market into homogeneous sub-units (segregated).
  • Market segmentation involves identifying portions of the market that are different from one another or that share a similar set of needs.

Importance of Segmentation

  • Market segmentation allows businesses to better address specific customer needs, leading to more efficient marketing efforts.
  • Segmentation supports resource allocation, allowing for more targeted campaigns and increased return on investment.
  • Segmentation provides a competitive advantage by allowing companies to tailor their marketing strategies to their specific customer segments.

Learning Objectives

  • Understand the meaning and importance of segmentation.
  • Identify bases of segmentation.
  • Define types of segmentation.
  • Understand the meaning of targeting.
  • Identify types of targeting.
  • Define selection criteria for targeting.

Types of Targeting

  • Mass Market Strategy: A single product/service aimed at broad market, neglecting segment-specific differences.
    • Works well for standardized products with minimal variation in consumer needs.
  • Differentiated Market Strategy: Separate marketing mixes are created for individual segments.
    • More expensive, but addresses diverse customer needs within a market.
  • Concentrated Market Strategy: Focus marketing efforts on a specific, well-defined niche/segment.
  • Adjacent Segment Strategy: After a firm penetrates a single segment, expanding into adjacent segments that have a high degree of similarity to the existing segment.
  • Niche Segment Strategy: A firm targets a very small, specific segment that has largely been ignored by larger competitors.
    • Offers specific advantages and avoids competing directly with larger entities.

Bases for Segmentation

  • Demographic: Age, sex, family size, income, occupation, education, religion.
  • Geographic: Region, density, climate, urban/rural.
  • Psychographic: Lifestyle, personality, values, interests.
  • Behavioral: Usage rate, brand loyalty, benefits sought.
  • Occasion response segmentation: Identifies occasions when customers are more likely to buy a certain product, thereby tailoring the marketing strategy accordingly.
  • Benefit response segmentation: Divides markets based on the benefits customers seek from the product.

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