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The flashcards below were created by user
Bernard117
on FreezingBlue Flashcards.
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Why do we use segmentation?
Since all consumers have different needs and wants, it is not possible to satisfy everyone with same service/product.
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What is a three-step process behind segmentation?
- Segment market,
- deciding which segments to target,
- decide how to differentiate and position your product/service to best address the needs of your target market
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What are the major segmentation variables for consumer markets?
- Geographic,
- demographic,
- Pscyhographic,
- usage,
- benefits
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What is the criteria for a successful segmentation?
- Responsiveness,
- Accessible,
- Substantiality,
- Indentifabilty and measureablity
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What are the three main targeting approaches?
- Undifferentiated
- Concentrated
- Multi Segment
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What is Undifferentiated Targeting? and its pros and cons
- Marketing the same product to the entire market the same way.
- +low cost for marketing
- +Allows for efficient production of large volumes.
- -Universal offering not adapted to differences
- vulnerable to competition
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What is concentrated targeting? What are pros and cons?
- The company selects one segment for its marketing efforts.
- +Resources are concentrated in one area.
- +Company can develop a highly specialized marketing
- -all eggs in one basket, problem is segment shrinks
- -company vulnerable if competition increases in segment.
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What is multi segment targeting? What are pros and cons?
- Company targets two or more segments with different marketing mix for each. Difference can range from new promotion to entirely new product.
- + Company can satisfy larger share of market.
- +increases sales volumes compare to concentrated strategy
- -more costly
- -cannibalization
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What is cannibalization?
Cannibalization happens when a company's product steals market share from another of its own products. (Happens in multisegment targeting)
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What is one to one marketing? (targeting)
it is CRM used as a targeting tool. Targeting segments of one customer at a time.
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What is positioning?
Positioning is a design of and implementation of a marketing mix to create an image of the brand in the customers mind relative to competitors.
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