Marketing Principles Chapter 7
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Which variable is not typically used for segmenting consumer markets?

  • Psychographic
  • Demographic
  • Technological (correct)
  • Behavioral

    • In segmenting international markets, which of the following factors is considered alongside geographic location?

  • Economic factors (correct)
  • Sociological factors
  • Technological advancements
  • Psychographic characteristics

    • What best describes intermarket segmentation?

  • Segmenting markets solely on demographic information
  • Segmenting business markets by purchasing approaches
  • Segmenting markets based on geographic boundaries
  • Segmenting consumers based on similar needs across different countries (correct)

    • Which of the following is an additional variable used primarily for segmenting business markets?

    <p>Personal characteristics</p> Signup and view all the answers

    Which characteristic is least likely to be categorized under psychographic segmentation?

    <p>Income level</p> Signup and view all the answers

    What is the primary basis for geographic segmentation?

    <p>Location such as nations or cities</p> Signup and view all the answers

    Which of the following is NOT considered a basis for demographic segmentation?

    <p>Loyalty status</p> Signup and view all the answers

    In psychographic segmentation, which of the following aspects is emphasized?

    <p>Personality characteristics</p> Signup and view all the answers

    Behavioral segmentation includes which of the following aspects?

    <p>Consumer attitudes and product usage</p> Signup and view all the answers

    How can occasions influence behavioral segmentation?

    <p>By indicating when products are consumed</p> Signup and view all the answers

    Which segmentation type would most likely consider 'lifestyle' as a factor?

    <p>Psychographic segmentation</p> Signup and view all the answers

    Which of the following is an example of behavioral segmentation based on user status?

    <p>First-time versus repeat customers</p> Signup and view all the answers

    What is a primary focus of behavioral segmentation?

    <p>Understanding benefits sought from products</p> Signup and view all the answers

    What is the primary purpose of market segmentation?

    <p>To identify groups with similar needs for targeted strategies.</p> Signup and view all the answers

    Which is NOT one of the major steps in designing a customer-driven marketing strategy?

    <p>Cost reduction</p> Signup and view all the answers

    In a customer-driven marketing strategy, what does differentiation aim to achieve?

    <p>Distinguish a product from competitors' products.</p> Signup and view all the answers

    What criteria is essential for effective market segmentation?

    <p>Segments must have distinct needs or characteristics.</p> Signup and view all the answers

    Which statement best describes market targeting?

    <p>It involves selecting one or more market segments to enter.</p> Signup and view all the answers

    What is one of the major bases for segmenting business markets?

    <p>Employee count of the business</p> Signup and view all the answers

    Why is positioning important in a marketing strategy?

    <p>It helps in aligning product benefits with customer needs.</p> Signup and view all the answers

    Which social media platform has benefited from successful segmentation and targeting to create distinct brands?

    <p>Facebook/Meta</p> Signup and view all the answers

    What is the primary focus of socially responsible targeting in marketing?

    <p>Ensuring that consumers use products wisely</p> Signup and view all the answers

    What does product position refer to?

    <p>How consumers perceive the product based on attributes</p> Signup and view all the answers

    In a positioning map, what do the size of the circles represent?

    <p>The brand’s relative market share</p> Signup and view all the answers

    Which of the following is NOT a step in choosing a differentiation and positioning strategy?

    <p>Creating a unique product design</p> Signup and view all the answers

    What primary dimensions are used in the positioning map for large luxury SUVs?

    <p>Luxury versus performance</p> Signup and view all the answers

    What message does Spotify communicate through its positioning?

    <p>Music for every occasion and mood</p> Signup and view all the answers

    Which factor is emphasized in the choice of competitive advantages for positioning?

    <p>Identifying or creating unique features that can be communicated to consumers</p> Signup and view all the answers

    What does the term 'urban luxury' refer to in the context of the Cadillac Escalade's positioning?

    <p>A balance of luxury and practical performance characteristics</p> Signup and view all the answers

    What is the main focus of concentrated marketing?

    <p>Targeting a large share of one or a few segments</p> Signup and view all the answers

    Which criterion indicates that a company's differentiation offers a benefit that is not easily replicated by competitors?

    <p>Preemptive</p> Signup and view all the answers

    Which of the following best describes micromarketing?

    <p>Adapting products to individual tastes and local segments</p> Signup and view all the answers

    What is the purpose of local marketing?

    <p>To tailor promotions to the unique needs of specific local segments</p> Signup and view all the answers

    In the context of competitive advantage, what does the term 'superior' imply regarding differentiation?

    <p>It exceeds other ways of delivering the same benefit.</p> Signup and view all the answers

    What differentiates individual marketing from other targeting strategies?

    <p>It emphasizes mass customization and one-to-one strategies</p> Signup and view all the answers

    Which positioning strategy involves charging higher prices for upscale products while facing risks from imitators?

    <p>More for more</p> Signup and view all the answers

    Which factor is NOT considered when choosing a targeting strategy?

    <p>Market share of competitors</p> Signup and view all the answers

    What is required for a differentiation strategy to be deemed 'affordable'?

    <p>Customers must have sufficient financial resources to purchase it.</p> Signup and view all the answers

    Which of the following characteristics does NOT reflect the important criterion of differentiation?

    <p>Meets broader market demands</p> Signup and view all the answers

    Which of the following best defines mass customization?

    <p>Tailoring products based on individual customer specifications</p> Signup and view all the answers

    Which marketing approach primarily focuses on the unique needs of all customers in a local area?

    <p>Micromarketing</p> Signup and view all the answers

    What is the primary focus of a value proposition in the context of differentiation?

    <p>Providing a full mix of benefits for positioning</p> Signup and view all the answers

    Which of the following criteria emphasizes the necessity for a difference to be clear and apparent to potential customers?

    <p>Communicability</p> Signup and view all the answers

    Which characteristic is least likely associated with concentrated marketing?

    <p>Focus on multiple large market segments</p> Signup and view all the answers

    Which of the following best describes the distinctiveness of a differentiation strategy?

    <p>Competitors do not offer similar differences.</p> Signup and view all the answers

    Study Notes

    Marketing Principles - Chapter 7

    • Customer Value-Driven Marketing Strategy: This chapter focuses on creating value for target customers. Marketing boils down to two core questions: which customers will be served and how will they be served.

    Learning Objectives

    • Learning Objective 1: Defining the key steps in designing customer-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

    • Learning Objective 2: Discussing segmentation bases for both consumer and business markets.

    • Learning Objective 3: Explaining how companies identify attractive market segments and choose appropriate targeting strategies.

    • Learning Objective 4: Discussing how companies create differentiation and position their products for a competitive edge.

    Customer Value-Driven Marketing Strategy

    • Figure 7.1: Illustrates the design process, starting with selecting customers to serve. This involves segmentation (dividing the total market into smaller segments), targeting (selecting the segment(s) to enter), differentiation (creating value for targeted customers by differentiating the market offering), and positioning (positioning the offering in the minds of target customers).

    Market Segmentation

    • Concept: Dividing a broad market into smaller segments with distinct needs, characteristics, or behaviors that may require separate marketing strategies.

    • Consumer Market Segmentation:

    • Geographic: Dividing the market based on geographical units (nations, regions, states, cities, neighborhoods).

    • Demographic: Segmenting by age, life-cycle stage, gender, income, occupation, religion, ethnicity, and generation.

    • Psychographic: Segmenting based on social class, lifestyle, or personality characteristics.

    • Behavioral: Segmenting based on consumer knowledge, attitudes, product usage, or responses to products. This involves occasions, benefits sought, user status, usage rate, and loyalty status.

    • Business Market Segmentation: Similar bases to consumer markets, but could also include customer operating characteristics, purchasing approaches, situational factors, and personal characteristics.

    • International Market Segmentation: Focuses on geographical location (cross-border), economic factors (GDP, GNP), political and legal factors (law & regulation), and cultural factors (culture, subculture, social class).

    • Intermarket Segmentation: Forming segments of consumers who exhibit similar needs and purchasing behaviors across different countries.

    • Effective Segmentation Requirements: Measurable (size, value), Accessible (can be reached), Substantial (market size is large enough), Differentiable (easy to differentiate segments), and Actionable (practical for implementation).

    Market Targeting

    • Concept: Evaluating market segments and selecting target segments.

    • Evaluation Criteria: Segment size and growth, segment structural attractiveness (competition and substitute products), and company objectives and resources (fit between company objectives and resources).

    • Target Market: A set of buyers who share common needs or characteristics that a company chooses to serve.

    • Targeting Strategies:

    • Undifferentiated (mass) marketing: Ignoring segment differences and going after the whole market with one offer.

    • Differentiated marketing: Targeting multiple segments and tailoring different offers for each.

    • Concentrated (niche) marketing: Going after a large share of one or a few segments.

    • Micromarketing: Tailoring products and marketing programs for specific individuals or local customer segments (local and individual marketing).

    Market Differentiation and Positioning

    • Product positioning: The way a product is defined by consumers based on important attributes (perception, impression, and feelings).

    • Positioning maps: Visual representations showing consumer perceptions of brands versus competing products based on important buying dimensions.

    • Differentiation: Establishing a competitive advantage by offering consumers greater value (through lower prices or more benefits).

    • Value Propositions: The full mix of benefits that a brand is positioned on (e.g., "more for more," "more for the same," "the same for less," "less for much less"). Different kinds of positioning can target distinct markets and be successfully implemented.

    • Choosing a Differentiation and Positioning Strategy: Identifying competitive advantages, choosing the right advantages to pursue, selecting an overall positioning strategy, and communicating/delivering the chosen position.

    • Positioning Statement: A concise statement summarizing the brand's position: For (target customer), who (customer need), our product is (product description) that provides (key benefits), unlike (competitor brands), our product (differentiator).

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    Principles of Marketing (19th Edition) Chapter 7 PDF

    Description

    This quiz covers Chapter 7 of Marketing Principles, focusing on customer value-driven marketing strategies. It explores key concepts such as market segmentation, targeting, differentiation, and positioning to create a competitive edge. Test your understanding of how to effectively serve your target customers.

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