Jun 042015
 
Markets, exchange and target markets

When studying marketing it is important to understand the concept of a market and the exchange process. When we use the term “market” in a marketing sense, there are actually three possible views that we are considering – the overall market, any sub-markets and the brand’s target market/s. Overall market Read full article…

Feb 202015
 

What is repositioning? Repositioning is the task of implementing a major change the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products. Why repositioning is used? Changes in consumer needs and lifestyles may reduce the relevancy of the product New or stronger Read full article…

Feb 202015
 

What is meant by Points-of-difference (POD)? The aspects of the product offering that are relatively distinct to the offerings of like competitors. What is meant by Points-of-parity (POP)? The aspects of the product offering that are largely similar to the offerings of like competitors. Should a brand emphasize POD or Read full article…

Feb 202015
 

What is positioning? Positioning is defined as the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products. The important aspects of this definition are: Positioning is the perception held by consumers The focus is on the perceptions of the target market Only Read full article…

Feb 202015
 

Outline of the target market selection evaluation criteria Target markets should be evaluated on: Financial Issues Segment size Segment growth rate Profit margins Structural Attractiveness Competitors (direct and indirect) Competitive rivalry Access to distribution channels Current channel relationships Strategic Direction Fit with the firm’s strategic future Growth expectations Marketing Expertise Read full article…

Feb 202015
 

What is a segment profile? A segment profile is a descriptive summary of the size, needs, behaviors and preferences of consumers within a particular market segment, with the goal of evaluating segment attractiveness and developing suitable marketing strategies. Study Tip Connect the word ‘profile’ to a criminal profiler that we Read full article…

Feb 202015
 

The market segmentation evaluation criteria After constructing a set of market segments in the STP process, the market segments are then subject to evaluation against a set criteria. This is a checkpoint stage in the STP process. Its goal is to ensure that the segments meet basic requirements and guidelines Read full article…

Feb 202015
 
Study Notes for how market segmentation is undertaken

How to segment a market? (Technical aspects) There are two main approaches: cluster analysis (if data is available), otherwise segmentation trees. Cluster analysis Cluster analysis is an analysis designed to categorize objects to a pre-defined number of different groups, with each group being relatively similar on a range of selected Read full article…

Feb 202015
 
Study Notes for Business Segmentation Bases

What is a business segmentation base? A business segmentation base is definable characteristics or behavior of organizations that can be utilized to classify the organizations into related groups, for the purpose of target marketing. Main business segmentation bases (with examples) Geographic location/s: Where the business operates. Examples: Countries, regions, spread Read full article…

Feb 202015
 

Geographic Segmentation Base Advantages Considers cultural differences of different regions Good for firms with limited geographic reach needing to select a specific target market Great when there is significant socio-economic diversity and significant consumer behavioral differences across regions Geographic Segmentation Base Limitations Assumes that consumers in a geographic area are Read full article…

Feb 202015
 

Quick Study Notes for Market segmentation Definition of market segmentation The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets. What are segmentation bases? A definable characteristic, identity or behavior of an individual consumer that can Read full article…

Feb 202015
 

Quick Study Notes Market Consists of many buyers and sellers, within a particular industry or product category, who are seeking to create or gain value through the exchange of products for money. Sub-market A smaller and more defined sector of an overall market, which has a number of differing marketing Read full article…

Feb 202015
 

What is STP in Marketing? STP stands Segmentation, Targeting and Positioning STP is a process where a marketer: Segments an overall market,(segmentation) Evaluates each market segment on a set criteria, Selects the most appropriate target market/s for the firm, Then establishes an appropriate positioning in order to compete in that Read full article…

Feb 192015
 

Perceptual mapping is a key analytical tool in understanding market positioning. While the best piece of software to use to construct a perceptual map is Microsoft Excel, the structuring of the graph is sometimes a little bit tricky. Either a bubble chart for a scatter chart is the most appropriate Read full article…