3.3.3 Making marketing decisions: segmentation, targeting, positioning

• Demographic segmentation divides the market based on age, income, and gender
• How does behavioral segmentation divide the market?

  Buying habits
• What is concentrated targeting?

  Focus on a single segment
• What is the goal of market positioning?

  Differentiate products
• Factors to consider when selecting target markets

  1️⃣ Size and growth potential

  2️⃣ Level of competitive intensity

  3️⃣ Alignment with company resources
• What is the primary focus of differentiation as a positioning strategy?

  Unique product features
• What is the purpose of market segmentation?

  Tailor marketing strategies
• Geographic segmentation divides the market based on physical location
• What is an example of geographic segmentation?

  Selling snow equipment in cold climates
• Order the segmentation types based on their primary focus:

  1️⃣ Geographic (location)

  2️⃣ Demographic (age, income, gender)

  3️⃣ Psychographic (lifestyle, values)

  4️⃣ Behavioral (buying habits)
• Differentiated targeting involves serving multiple distinct market segments with tailored offerings.


  True
• What is differentiated targeting?

  Serve multiple distinct segments
• Effective market positioning allows a company to differentiate its products and communicate a distinct value proposition.


  True
• Trader Joe's positions itself as a specialty grocer for health-conscious consumers.

  True
• What is the focus of geographic segmentation?

  Location
• What is concentrated targeting?

  Focus on a single segment
• What is the primary goal when selecting target markets?

  Profitable growth
• Positioning based on offering the best quality for the price is called Price/Quality
• What company is an example of value pricing?

  Walmart
• Accessibility in segmentation effectiveness refers to the ability to reach segments through marketing channels.

  True
• Consumer feedback should be monitored regularly to adjust positioning strategies.


  True
• What is the purpose of market segmentation?

  Tailor marketing strategies
• Psychographic segmentation divides the market based on lifestyle, values, and attitudes
• Selecting the right target markets is a critical step in effective marketing
• Factors to consider when selecting target markets include segment size, competitive intensity, and alignment with company resources
• Undifferentiated targeting involves marketing a single offering to the entire market
• Walmart uses the Price/Quality positioning strategy to emphasize its low prices
• Patagonia aligns with a particular lifestyle by positioning itself as an environmentally-conscious outdoor
• Match the type of market segmentation with its explanation:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Regions, cities, countries

  Psychographic ↔️ Lifestyle, values, attitudes

  Behavioral ↔️ Purchasing habits, loyalty
• Match the segmentation variable with its example:

  Geographic ↔️ Selling swimwear in beach towns

  Demographic ↔️ Targeting luxury cars to high-income families

  Psychographic ↔️ Promoting eco-friendly products

  Behavioral ↔️ Offering loyalty rewards
• Differentiated targeting involves serving multiple distinct segments with tailored offerings.


  True
• What are three key factors to consider when selecting target markets?

  Size, growth potential, competitive intensity
• Effective positioning can increase brand loyalty and market share.


  True
• Value pricing aims to provide customers with the most quality for the price.


  True
• A concentrated targeting strategy focuses on a deep understanding of a single segment
• Behavioral segmentation includes variables such as usage rates and brand loyalty
• Undifferentiated targeting aims to market a single offering to the entire market
• Market positioning refers to how a product or brand is perceived by consumers in relation to competing offerings.


  True
• Positioning based on unique product features or benefits is called Product Differentiation
• What does measurability refer to in evaluating segmentation effectiveness?

  Identifying and quantifying segments