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 … Read more...
Category: Segmentation, Targeting and Positioning
Age Cohorts and Gen Edge
When studying consumer behavior and/or the marketing environment, the concept of age cohorts is often discussed within the marketing textbook.
Age cohorts of very large groups of populations that were born in the same time – usually within the same … Read more...
Study Notes for Repositioning
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
Study Notes for Perceptual Maps
What is a perceptual map?
A perceptual map is of the visual technique designed to show how the average target market consumer understands the positioning of the competing products in the marketplace.
The following chart is an example of a … Read more...
Study notes for points-of-difference (POD) and points-of-parity (POP)
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 … Read more...
Study Notes for Positioning Examples
Main positioning categories
- By product attribute
- By user
- By product class
- Against competition
- By use or application
- By quality or value
- By using a combination of the above options
How to choose the best positioning approach?
- Market gaps – is
Study Notes for Positioning
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
Study Notes for niche marketing
What is niche marketing?
Niche marketing is a specialized market offering focused on the needs of one tightly-defined market segment.
Usually the niche marketer only offers a very limited product range to this segment. As a result, the niche marketer … Read more...
Study Notes for target market selection
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
… Read more...Study Notes for Target Markets
Marketing Study Notes
What is a target market?
A target market is a market segment that has been deliberately selected by an organization in order to focus their marketing efforts and offerings.
Why is target market selection important?
- Target market
Study Notes for Segment Profiles
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
… Read more...Study Notes for market segmentation evaluation criteria
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 … Read more...
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 … Read more...
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)
… Read more...Advantages and limitations of the main market segmentation bases
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
… Read more...Quick Study Notes for Market Segmentation
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
Quick Study Notes for markets, sub-markets and product-markets
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
Quick Study Notes for STP in Marketing
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
A perceptual map maker
Why create a perceptual map from scratch?
Perceptual maps are often quite difficult to format, so take advantage of the free perceptual map template that I have built for Microsoft Excel.
It is quick and easy to use – … Read more...
Make a Perceptual Map using Microsoft Excel
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 … Read more...