This module focusses our attention on key customer-driven marketing strategy decisions—how to analyse markets based on the most appropriate criteria for various homogeneous market groups (segmentation); choose which customer groups to serve (targeting); create market offerings that best serve targeted customers (differentiation); and positioning the offerings in the minds of consumers (positioning).
All manner of marketing organisations has moved away from mass marketing and product-variety marketing towards target marketing. As such, identifying who to target is increasingly important and it is necessary to understand the concept of segmentation whereby markets are divided into groups based upon the similarity of their need; or at least the similarity of how this need can be satisfied. Once segments have been identified the marketer then must determine which segments are the most attractive to the company. Market offerings that meet the needs of target markets then must be developed, with a view to differentiating the offerings of our brand from those of competing brands, and positioning our brand for maximum competitive advantage.
The modules that follow explore the tactical marketing tools—the extended marketing mix—by which marketers bring these strategies to life.
Definitions
Define/Describe the marketing terms below and provide an example (1 mark for definition and 1 mark for an example)
Segmentation
Target Marketing
Positioning
Life – Cycle Segmentation
Value Proposition
Behavioural Segmentation
Psychographic Segmentation
Micro-marketing
Undifferentiated Marketing
Individual Segmentation