Questions and Answers
_____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer’s mind.
Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically.
Carol’s Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____
_____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.
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In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision.
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AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink’s target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers’ activities.
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When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____.
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Which of the following statements is true of behavioral segmentation?
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Which of the following is true of principle-oriented consumers?
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A(n) _____ consumer shops for products that demonstrate the consumer’s success.
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_____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk.
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A(n) _____ refers to a recurring buying situation handled on a routine basis.
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Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client–supplier relationship?
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What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets?
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In which of the following steps of evaluating potential target markets is the market-attractiveness/competitive-position matrix plotted?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong?
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Which of the following is true of a mass-market strategy?
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Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share?
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_____ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program.
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Study Notes
Market-Oriented Perspectives
- Market-oriented perspectives underlie successful corporate, business, and marketing strategies.
Brand Positioning
- Brand positioning entails designing product offerings and marketing programs to establish an enduring competitive advantage in the target market by creating a unique brand image or position in the customer's mind.
Market Segmentation
- Market segmentation involves dividing the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.
- There are different types of market segmentation, including:
- Demographic segmentation: dividing the market based on demographic characteristics such as age, gender, and income.
- Geographic segmentation: dividing the market based on geographic characteristics such as region, city, and climate.
- Psychographic segmentation: dividing the market based on lifestyle, personality, and values.
- Behavioral segmentation: dividing the market based on behavioral characteristics such as usage rate, loyalty, and readiness.
Customer Characteristics
- Customers can be grouped by the characteristics of the individuals who influence the purchasing decision.
- Principle-oriented consumers are motivated by abstract and idealized criteria.
- Status-oriented consumers shop for products that demonstrate their success.
- Action-oriented consumers are guided by the need for social or physical activity and variety.
- Resource-oriented consumers are motivated by risk-taking.
Buying Situations
- Buying situations can be classified into three types:
- Straight rebuy: a recurring buying situation handled on a routine basis.
- Modified rebuy: a buying situation where some element, such as price or delivery schedules, has changed.
- New buy: a new buying situation that requires a thorough analysis of the options.
Market Attractiveness/Competitive Position Matrix
- The market attractiveness/competitive position matrix is a tool used to evaluate potential target markets.
- The first step in constructing the matrix is to select market attractiveness and competitive position factors.
- The matrix is plotted by rating segments on each factor and assigning numerical weights to the factors.
- Based on the matrix, firms can consider different strategies, such as:
- Expanding without high risk or minimizing investment and focusing on operations when market attractiveness is moderate and competitive position is weak.
- Building selectively on strengths and investing to improve position only in areas where risk is low when market attractiveness is low and competitive position is strong.
- Investing more to grow at a maximum rate and concentrating on maintaining strengths when market attractiveness is high and competitive position is strong.
Marketing Strategies
- A mass-market strategy involves designing a single product-and-marketing program that will appeal to the largest number of consumers.
- A niche-market strategy involves serving one or more segments with customers seeking somewhat-specialized benefits from a product.
- A growth-market strategy is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share.
Market Segmentation Process
- The market segmentation process involves three important steps:
- Identify a homogeneous segment that differs from other segments.
- Specify criteria that define the segment.
- Develop a marketing mix that matches the needs and wants of the target segment.
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Description
Quiz on market-oriented perspectives, brand positioning and marketing strategies. Test your knowledge on creating competitive advantage and target market positioning.
