30 Questions
What are the criteria that make a brand difference worth establishing?
Important, distinctive, superior, communicable, preemptive, and affordable
What is the 'more-for-more' positioning strategy about?
Providing the most upscale product or service and charging a higher price
What does the 'same for less' positioning involve?
Offering the same for less price
What is the essence of 'less-for-much-less' positioning?
Meeting consumers’ lower performance or quality requirements at a much lower price
What does a positioning statement do?
Summarizes company or brand positioning for target customers, unsolved customer needs, product description, and key benefits
What is the 'more for less' value proposition about?
Offering more for less
What are the major steps in designing a customer value–driven marketing strategy?
Market segmentation, targeting, differentiation, and positioning
What is market segmentation?
Dividing a market into distinct groups of buyers with different needs
What is the purpose of differentiation in a customer value–driven marketing strategy?
To create superior customer value different from competitors
What does market targeting involve?
Evaluating each market segment’s attractiveness and selecting one or more segments to serve
What are the major bases for segmenting consumer markets?
Geographic, demographic, psychographic, and behavioral
What is the primary focus of a customer value–driven marketing strategy?
Building the right relationships with the right customers
Which type of segmentation divides buyers based on lifestyle or personality characteristics?
Psychographic segmentation
Which segmentation categorizes buyers based on their knowledge, attitudes, uses, or responses to a product?
Behavioral segmentation
Which segmentation groups buyers based on when they get the idea to buy, make purchases, or use items?
Occasion segmentation
Which segmentation groups buyers based on the different benefits they seek from a product?
Benefit segmentation
Which segmentation forms segments of consumers with similar needs and buying behaviors across different countries?
Intermarket segmentation
What is a set of buyers with common needs or characteristics that a company decides to serve known as?
Target market
What is the essence of micromarketing?
Tailoring products and marketing programs to the needs of specific individuals and local customer segments
What is the primary focus of concentrated marketing strategy?
Going after a larger share of one or a few smaller segments or niches
What is the key aspect of socially responsible targeting?
Considering whether targeted consumers use products wisely
What does product positioning refer to?
How a product is defined by consumers on important attributes and the place it occupies in consumers' minds relative to competing products
What is the goal of differentiation and positioning strategies?
To identify differentiating competitive advantages, choose the right competitive advantages, and select an overall positioning strategy
What is the fundamental requirement to build profitable relationships with target customers and gain competitive advantage?
To understand customer needs and deliver more customer value better than competitors
What are the criteria for effective segmentation analysis?
Measurable, accessible, substantial, differentiable, and actionable segments
What factors do companies consider to choose a market-targeting strategy?
Segment size, growth characteristics, structural attractiveness, and compatibility with company objectives and resources
What are the five winning value propositions that companies can choose from?
More for more, more for the same, the same for less, less for much less, or more for less
What is the purpose of a positioning statement?
Summarize the target segment and need, the positioning concept, and specific points of difference with respect to the competition
What does geographic segmentation involve?
Dividing the market into different geographical units and localizing products and services
What variables are considered in demographic segmentation?
Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
Study Notes
Market Segmentation and Targeting Strategies
- Market segmentation involves dividing the market into geographic, demographic, psychographic, and behavioral segments.
- Business markets can also be segmented by business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics.
- Effective segmentation analysis depends on finding measurable, accessible, substantial, differentiable, and actionable segments.
- Companies evaluate segment size, growth characteristics, structural attractiveness, and compatibility with company objectives and resources to choose a market-targeting strategy.
- Market-targeting strategies range from undifferentiated (mass) marketing to micromarketing, depending on segment differences and company resources.
- Differentiation and positioning strategy involves identifying possible differentiations for competitive advantage, selecting advantages to build a position, and choosing an overall positioning strategy.
- Companies can choose from five winning value propositions: more for more, more for the same, the same for less, less for much less, or more for less.
- Positioning statements summarize the target segment and need, the positioning concept, and specific points of difference with respect to the competition.
- Designing a customer value–driven marketing strategy involves segmentation, market targeting, differentiation, and positioning.
- Geographic segmentation divides the market into different geographical units, and companies are increasingly localizing their products and services.
- Demographic segmentation divides the market based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
- Age and life-cycle stage segmentation is used by some companies to offer different products or marketing approaches for different age and life-cycle groups.
Test your knowledge of market segmentation and targeting strategies with this quiz. Explore the principles of geographic, demographic, psychographic, and behavioral segmentation, and learn about different market-targeting strategies, differentiation, and positioning. Gain insights into customer value-driven marketing strategies and the importance of segment analysis in business markets.
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