MKC1 Ch 5. Market Segmenting, Targeting, and Positioning

Explain each of these approaches/strategies to positioning: attributes

A product attribute is a specific feature or benefit of the product. Positioning in this way focuses on one or two of the product's best features/benefits, relative to the competitive offerings.

Explain each of these criteria for market segments: Able to serve the segment

Accessible: The segment has to be accessible and serviceable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use.

Explain each of these criteria for market segments: What is market positioning?

An effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind.

How can a firm use a positioning map to help them develop marketing strategy?

As the maps are based on the perception of the buyer they are sometimes called perceptual maps. Positioning maps show where existing products and services are positioned in the market so that the firm can decide where they would like to place (position) their product. Firms have two options they can either position their product so that it fills a gap in the market or if they would like to compete against their competitors they can position it where existing products have placed their product.

Explain each of these criteria for market segments: Match with marketing capabilities

Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes. marketing capabilities-do you have the capability to get to the market

How would you describe product-related (behavioral) segmentation? Name and explain three variables to segment customers

Dividing people and organization into groups according to how they behave with or act towards products. Organic, diabetic, allergies

Explain each of these criteria for market segments: Feasible

Feasible: It has to be possible to approach each segment with a particular marketing program and to draw advantages from that.

What is the difference between market segments and target markets?

Market Segmentation The process of breaking down all consumers into groups of potential buyers with similar characteristics. Targeted Marketing Choosing select groups of people to sell to.

Explain each of these criteria for market segments: Measurable purchasing power and size

Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).

Why do companies position products?

Product positioning is the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer needs, competitive pressures, available communication channels and carefully crafted key messages. Effective product positioning ensures that marketing messages resonate with target consumers and compel them to take action.

Explain each of these criteria for market segments: Good profit potential

Relevant: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.

What is demographic segmentation? Name and explain at least 5 different ways to demographically segment customers?

Segmenting buyers by tangible, personal characteristics such as their ages, incomes, ethnicity, family sizes and so forth.

How would you describe psychographics? Name and explain at least 4 variables can you use to segment customers

Segmenting people by their activities, interests, opinion attitudes, values, and lifestyles. sports, intellect, country club, wealth

Explain each of these approaches/strategies to positioning: price/quality

Some firms will position products based on relative high quality, or based on the claim that they represent significant value.

What is the difference between differentiated and undifferentiated marketing?

The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix -- one product, one price, one placement and a single promotional effort -- to reach the maximum number of consumers in that target market. A differentiated marketing strategy targets different market segments with specific marketing mixes designed especially to meet those segments' needs. Each mix includes a product, price, placement and promotional program customized specifically for a particular segment. For example, a company that manufactures vitamin supplements might identify gender-based market segments. It could produce one multivitamin formula for women and another for men. It could further differentiate by segmenting the gender groups by life stage and creating different marketing mixes around each one. Differentiated marketing is best suited for markets with readily identifiable segments, each with distinctive needs.

Explain each of these approaches/strategies to positioning: product user

This positioning approach highlights the user (the ideal or representative target consumer) and suggests that the product is the ideal solution for that type of person and may even contribute to their social self-identity.

Explain each of these approaches/strategies to positioning: product class.

This positioning strategy tends to take a leadership position in the overall market. Statements with the general message of "we are the best in our field" are common.

Explain each of these approaches/strategies to positioning: competitors

With this approach the firm would directly compare (or sometimes just imply), a comparison against certain well-known competitors (but not generally not the whole product class as above).

Explain each of these approaches/strategies to positioning: application

With this approach, the product/brand is positioned in terms of how it is used in the market by consumers, indicating that the product is the best solution for that particular task/use.