Marketing - week 3 - STP - Flashcards in University Business Management

What are the 2 main stages of designing a customer driven marketing strategy?

selecting customers to serve and deciding on a value proposition

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What is involved in the "selecting customers to serve" part?

segmentation and targeting

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What is involved in the "deciding on a value proposition" section?

Differentiation and positioning

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What is the The segmentation, targeting and positioning process: Baines et al 2016 (1)

1. The disaggregated market - The characteristics of individual customers are understood

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What is the The segmentation, targeting and positioning process: Baines et al 2016 (2)

2. The segmented market - Customers are grouped into segments on the basis of having similar characteristics

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What is the The segmentation, targeting and positioning process: Baines et al 2016 (3)

3.The target market-

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Why is there a need for market segmentation in today’ s business environment? Doyle 1994

• As different groups of customers have different needs and wants that can be satisfied- e.g. different types of meracades for different people. family’s, business man, bachelor

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What are the benefits of market segmentation? Fahy and Kotler 2012 (1)

Better matching of customer needs: 1. Enhanced opportunities for growth

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What are the benefits of market segmentation? Fahy and Kotler 2012 (2)

Better matching of customer needs: 2. Improved customer retention

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What are the benefits of market segmentation? Fahy and Kotler 2012 (3)

Better matching of customer needs: 3. Enhanced profitability

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What are the benefits of market segmentation? Fahy and Kotler 2012 (4)

Better matching of customer needs: 4.More effective targeting of communications

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What are the benefits of market segmentation? Fahy and Kotler 2012 (5)

Better matching of customer needs: 5. Opportunities of segment dominance

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When does positionig happen? (Armstrong)

• This happens once the company has decided what segments pf the market it will target, the company must decide what potision it wants to occupy in those segments

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What is a product or service position? (Armstrong)

• A product or service position is the way it is defined by consumers on important attributes- the place the product/service occupies in consumers minds relative to competing products

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What is competitvie positionig? (Armstrong)

• Competitive positioning is the when a company designs an offer and image so that they have a meaningful and distinctive poston in the target customers mind (kotler and kelier)

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What are the 2 stages of positionig- first stage

1. Plan position that will give the product the greatest advantage in selected target markets

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What are the two stages of positioning- second stage

2. Must design marketing mixes to create these planned positions

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What does a firm create differentiation on? (5)

– Product – Services – Channels – People – Image

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How can segmentation, targeting and psotioing help an organisation? (5) 1.

1. Satisfying customer demands

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How can segmentation, targeting and psotioing help an organisation? (5) 2.

2. Understanding a new consumer

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How can segmentation, targeting and psotioing help an organisation? (5) 3.

3. Adapting to the every changing market

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an segmentation, targeting and psotioing help an organisation? (5) 4.

4. Maintenance and enhancement of brand loyalty-

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an segmentation, targeting and psotioing help an organisation? (5) 5.

5. Assessing the pricing strategy to meet the target consumer

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Marketing - week 3 - STP

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