B2B Marketing Segmentation Quiz
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Questions and Answers

What is one of the primary benefits of gaining deeper market and customer knowledge in individual segments?

  • Eliminating all competitors
  • Reducing product variety
  • Avoiding unnecessary communication efforts (correct)
  • Minimizing customer segmentation

Which factor is NOT mentioned as a basis of segmentation in B2B markets?

  • Industry type
  • Company demographics
  • Personal characteristics
  • Individual spending habits (correct)

What does targeting entail according to Kotler et al (1997)?

  • Focusing solely on one segment indefinitely
  • Creating new market segments from existing data
  • Evaluating market opportunities and selecting segments (correct)
  • Eliminating unprofitable segments entirely

How can grouping customers based on needs increase profits for an organization?

<p>By enabling the organization to obtain better pricing (B)</p> Signup and view all the answers

What advantage is associated with gaining segment leadership?

<p>Higher profits and better ROI (C)</p> Signup and view all the answers

Which of the following situational factors can influence purchase behavior?

<p>Urgency of the purchase (D)</p> Signup and view all the answers

What is one possible purchasing approach a company could have?

<p>Decentralized or centralized buying (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of a viable market segment?

<p>Diminishing returns (A)</p> Signup and view all the answers

What is the first step in creating a risk management plan?

<p>Identify the risks (B)</p> Signup and view all the answers

Which category of risk refers to the support from senior management?

<p>Political risk (A)</p> Signup and view all the answers

What is the primary purpose of positioning in marketing?

<p>To establish a distinctive place in consumers' minds (B)</p> Signup and view all the answers

What type of risk would a natural disaster affecting equipment fall under?

<p>Physical risk (D)</p> Signup and view all the answers

What is typically included in a risk schedule?

<p>Comprehensive list of identified risks (B)</p> Signup and view all the answers

Which of the following describes a benefit-driven positioning strategy?

<p>Emphasizing advantages such as safety and durability (A)</p> Signup and view all the answers

Which of the following is NOT one of the six categories of risk assessed?

<p>Commercial (D)</p> Signup and view all the answers

Which characteristic is NOT part of evaluating market segments?

<p>Unpredictable (D)</p> Signup and view all the answers

What type of positioning strategy is represented by the phrase 'Made in Sri Lanka'?

<p>Country of origin (D)</p> Signup and view all the answers

Which risk category is associated with the loss of key employees?

<p>Labor risk (A)</p> Signup and view all the answers

Which of the following is an example of emotional positioning?

<p>Associating the product with feelings like love or joy (B)</p> Signup and view all the answers

What is the purpose of prioritizing risks in a risk management plan?

<p>To allow better allocation of resources towards tackling them (B)</p> Signup and view all the answers

What could potentially affect a strategy from external pressures?

<p>Media or pressure groups (B)</p> Signup and view all the answers

What does substantial mean in the context of evaluating market segments?

<p>The segment is large enough to be profitable (B)</p> Signup and view all the answers

Which positioning strategy focuses on the needs of sports enthusiasts?

<p>User or personality driven (D)</p> Signup and view all the answers

Which positioning strategy emphasizes value and low pricing?

<p>Price driven (C)</p> Signup and view all the answers

What is market segmentation primarily aimed at achieving?

<p>Dividing a market into distinct groups of buyers (C)</p> Signup and view all the answers

Which of the following is NOT one of the identified bases of segmentation?

<p>Color preferences (B)</p> Signup and view all the answers

What does 'loyalty status' in market segmentation refer to?

<p>The degree of customer commitment to a brand (B)</p> Signup and view all the answers

Which benefit of market segmentation focuses on tailoring marketing communications?

<p>Focusing marketing communications (D)</p> Signup and view all the answers

How does market segmentation meet customer needs more effectively?

<p>By providing a closer match with customer needs (D)</p> Signup and view all the answers

In market segmentation, which demographic factor is NOT typically used?

<p>Favorite color (A)</p> Signup and view all the answers

What is the primary focus of 'benefit sought' in market segmentation?

<p>Customer motivations for seeking a product (B)</p> Signup and view all the answers

Which characteristic is considered in the 'user status' segmentation base?

<p>Past purchasing behavior (D)</p> Signup and view all the answers

Which of the following demographic segments is likely to be a focus when segmenting a market based on family life cycle?

<p>Bachelors (B)</p> Signup and view all the answers

In market segmentation, the term 'benefit sought' includes which of the following?

<p>Customer desires for product features (D)</p> Signup and view all the answers

What is one of the primary aims of risk management strategies?

<p>To reduce the likelihood of risk occurring (A)</p> Signup and view all the answers

What does the prioritization of risks involve?

<p>Categorizing risks as low, medium, or high (A)</p> Signup and view all the answers

Which of these is NOT a type of risk management strategy listed?

<p>Projection (A)</p> Signup and view all the answers

What is the purpose of a contingency plan?

<p>To deal with unlikely events that could have significant impacts (D)</p> Signup and view all the answers

What should a contingency plan include?

<p>Activities and milestones to realign the strategy (D)</p> Signup and view all the answers

Retention as a risk management strategy means what?

<p>Accepting the risk and planning accordingly (C)</p> Signup and view all the answers

Which priority category indicates a risk that is insignificant?

<p>Priority 4 - Insignificant (B)</p> Signup and view all the answers

Which action is not typically associated with the reduction strategy?

<p>Eliminating all risk factors (C)</p> Signup and view all the answers

Flashcards

Market Segmentation

Dividing a market into distinct groups with different needs or behaviors, potentially needing separate marketing strategies.

Bases of Segmentation

Categories or criteria used to divide a market, such as demographics, geography, behavior, or psychographics.

Geographic Segmentation

Dividing the market based on location (e.g., regions, countries).

Demographic Segmentation

Dividing the market based on factors like age, gender, income, family size.

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Psychographic Segmentation

Dividing the market based on lifestyle, values, personality traits.

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Behavioral Segmentation

Dividing the market based on customer behaviors such as usage rate, loyalty, or purchase occasion.

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Benefit Sought Segmentation

Dividing the market based on the benefits customers seek from a product.

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Customer Needs

The wants and requirements of customers from a product or service.

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Marketing Communication

The way a company communicates with customers.

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Buyer Persona

A representation of a typical customer within a specific target market.

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B2B Segmentation Bases

Strategies for segmenting business-to-business (B2B) markets based on factors such as industry type, benefits sought, purchase potential, company demographics, purchasing approaches, situational factors, and personal characteristics of buyers.

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DAMP Framework

A framework for evaluating market segments, considering distinctness, accessibility, measurability, and profitability.

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Targeting

Process of evaluating market segment attractiveness and selecting one or more segments to target with specific marketing efforts.

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Market Segment Attractiveness

Analysis of market segment viability and match with organization's goals and resources.

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Profitability

Financial viability of a segment.

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Segment Leadership

Achieving a superior market position within a specific target segment.

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Target Market

A specific group of consumers that a company aims to reach with its products or services.

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Positioning

Creating a distinct and desirable image of a product or brand in the minds of target consumers compared to competitors.

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Perceptual Map

A visual tool that shows how customers perceive different products or brands based on key attributes.

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Functional Positioning

Highlighting key features and benefits of a product to appeal to customers.

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Benefit-Driven Positioning

Emphasizing the advantages and positive outcomes that a product provides to customers.

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Homogeneous Segment

A group of consumers with similar needs and characteristics, making it ideal for targeted marketing.

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Measurable Segment

A group of consumers where data is readily available to understand their characteristics and behaviors.

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Substantial Segment

A market segment that has enough customers to generate profitable sales.

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What are uncontrollable risks?

Risks that are external and beyond the control of the organization, such as political instability, economic downturn, or natural disasters.

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What are internal risks?

Risks that arise within the organization, such as employee turnover, technology failures, or internal conflicts.

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What is a contingency plan?

A backup plan to mitigate the impact of potential risks. It outlines alternative actions to take if an identified risk event occurs.

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What is a risk matrix?

A tool used to prioritize risks based on their likelihood and impact. It helps identify the most critical risks that need immediate attention.

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Risk identification

The process of identifying potential risks that could affect a strategy or project. This involves brainstorming, reviewing past experiences, and analyzing the environment.

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Risk prioritisation

Ranking risks by their severity and impact, helping determine which risks require the most attention and resources.

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Risk mitigation

Taking steps to reduce the likelihood or impact of identified risks. This could involve preventative measures, contingency planning, or risk transfer.

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Risk management schedule

A timeline for implementing risk management activities, including when to identify, prioritize, and mitigate risks.

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Risk Management

The process of identifying, analyzing, and responding to potential risks that could threaten a project or organization's success.

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Risk Priority

A rating assigned to risks based on their potential impact and likelihood of occurring.

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Risk Strategies

Different approaches to deal with risks, including avoidance, reduction, sharing, and retention.

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Contingency Planning

Developing backup plans to handle unexpected events or risks that might derail a project or plan.

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Avoidance Strategy

Taking steps to completely eliminate a risk or avoid becoming involved in a risky situation.

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Reduction Strategy

Minimizing the likelihood or impact of a risk by taking actions to control or mitigate it.

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Sharing Strategy

Transferring some or all of the risk to a third party, such as an insurer or outsourcing partner.

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Retention Strategy

Accepting a risk and taking steps to deal with its potential consequences if it occurs.

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Study Notes

Strategy & Planning - CIM Level 6 Diploma in Professional Digital Marketing

  • This course covers developing strategic marketing plans for organizational objectives.
  • It includes evaluating different strategic marketing options and justifying the chosen option.
  • Relevant factors include organizational objectives, strategic options in changing environments, synergy between online and offline strategies, etc.
  • The course also covers developing justifiable marketing objectives relevant to organizational goals.
  • A key aspect is preparing a comprehensive marketing plan to achieve these objectives.
  • Essential elements include understanding STP (Segmentation, Targeting, Positioning).

STP (Segmentation, Targeting, Positioning)

  • Segmentation: Grouping prospective buyers with common needs who respond similarly to marketing action.
  • Targeting: Evaluation of market opportunities aligned with an organization's competencies and assets, determining which segments to enter.
  • Positioning: Deciding how to occupy a clear, distinctive place in the minds of target consumers in relation to competing products.

Bases of Segmentation

  • Geographic: Region, country size, population, area, density, climate.
  • Demographic: Age, gender, income, occupation, family life cycle, education, religion, race, nationality, etc.
  • Behavioural: Rate of usage, benefits sought, loyalty status, readiness to purchase.
  • Psychographic: Lifestyle, values, personality traits (e.g., desire for fairtrade, different socio-economic groups or social class).

Criteria for Effective Segmentation

  • Accessibility: The segment must be easily served.
  • Substantiality: The segment must be large and profitable.
  • Measurability: Accurate data on purchasing power and profile is essential.
  • Actionability: Development of effective programs for attracting and serving the segment is key.
  • Differentiability: Segments should respond differently to different marketing programs.
  • Longevity: Segments should align with the company's long-term objectives.

Types of Targeting Strategies

  • Undifferentiated (Mass) Marketing: Targeting the entire market with one marketing mix.
  • Differentiated (Segmented) Marketing: Targeting various market segments with different marketing mixes tailored to each.
  • Concentrated (Niche) Marketing: Focusing on one or a few small, specific segments.
  • Micromarketing: Tailoring to segments of one (i.e., individual customer level.)

Positioning Strategies

  • Various strategies exist: Product feature, benefit, price, quality, user, problem-solution, emotional, etc.
  • Understanding a brand's desired image and competitive positioning is critical. Positioning maps graphically illustrate perceptions of a brand relative to competitors.

Risk Assessment and Contingency Planning

  • Strategy implementation involves risks (both external, uncontrollable, and internal, controllable).
  • Risk categories identified include: political, social, physical, technical, labor, and legal issues.
  • Contingency planning addresses potential risks with activities to deal with possible events.

Evaluating Strategic Options

  • Suitability: Aligning the strategy with the firm's current position, longer term goals, and the external environment.
  • Feasibility: Assessing the resources needed for strategy implementation using tools like cash flow, break-even analysis, and assessing competencies.
  • Acceptability: Evaluating the potential risks and rewards with stakeholder perspective (e.g. the degree of potential resistance and how likely to be acceptable to stakeholders, undertaking a pilot test.)

Marketing ROI

  • Calculated by dividing sales growth by marketing costs. Key to evaluating efficiency of marketing campaigns.

Marketing Budget

  • Detailed breakdown of budgeted spending on various marketing elements (full-time personnel, agency/freelancer, tools, etc.).
  • Critical for planning and execution of campaigns.

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Chapter 3 - AC 3.2 - CIM Strategy & Planning PDF

Description

Test your knowledge of B2B marketing segmentation concepts and practices. This quiz covers key principles such as customer knowledge, targeting, and market segment characteristics. Ideal for students and professionals looking to enhance their understanding of market strategies.

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