Segmentation, targeting, positioning

• What is market segmentation?

  Identifying parts of the market with similar needs
• What are the types of market segmentation?

  Demographic, geographic, behavioral, psychographic
• What is the key benefit of market segmentation?

  Focus marketing efforts accurately on segments
• How does market segmentation help businesses develop products?

  By tailoring products to specific customer segments
• What is a useful framework for analyzing market positioning?

  Market (positioning) map
• What are the main aspects of market segmentation?

  • Identifying customer needs and wants
  • Classifying segments by size and specificity
  • Types of segmentation:
  • Demographic
  • Geographic
  • Behavioral
  • Psychographic
  • Benefits:
  • Focused marketing efforts
  • Tailored product development
• What does a market (positioning) map illustrate?

  The range of positions a product can take
• What are the two dimensions important to customers in a positioning map?

  Dimensions chosen for the axes
• What are some possible dimensions for the axes of a positioning map?

  • Low price vs High price
  • Basic quality vs High quality
  • Low volume vs High volume
  • Necessity vs Luxury
  • Light vs Heavy
  • Simple vs Complex
  • Unhealthy vs Healthy
  • Low-tech vs Hi-tech
• What is a key consideration when using positioning maps in marketing decision-making?

  Care must be taken in their application
• What are the advantages of positioning maps?

  • Help spot gaps in the market
  • Useful for analyzing competitors
  • Encourage use of market research
• What are the disadvantages of positioning maps?

  • Gaps do not guarantee demand
  • No guarantee of success
  • Reliability of market research is questionable
• How can positioning maps help in competitor analysis?

  They show where competitors' products are positioned
• Why is it important to consider the reliability of market research in positioning maps?

  It affects the accuracy of product positioning