Marketing Principles Chapter 7
45 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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

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

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

What is the primary basis for geographic segmentation?

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

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

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

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

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

Behavioral segmentation includes which of the following aspects?

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

How can occasions influence behavioral segmentation?

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

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

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

What is a primary focus of behavioral segmentation?

<p>Understanding benefits sought from products (C)</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. (B)</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 (C)</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. (B)</p> Signup and view all the answers

What criteria is essential for effective market segmentation?

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

Which statement best describes market targeting?

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

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

<p>Employee count of the business (C)</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. (B)</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 (A)</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 (C)</p> Signup and view all the answers

What does product position refer to?

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

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

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

What message does Spotify communicate through its positioning?

<p>Music for every occasion and mood (D)</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 (D)</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 (C)</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 (A)</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 (D)</p> Signup and view all the answers

Which of the following best describes micromarketing?

<p>Adapting products to individual tastes and local segments (B)</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 (B)</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. (B)</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 (C)</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 (C)</p> Signup and view all the answers

Which factor is NOT considered when choosing a targeting strategy?

<p>Market share of competitors (C)</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. (C)</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 (B)</p> Signup and view all the answers

Which of the following best defines mass customization?

<p>Tailoring products based on individual customer specifications (C)</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 (D)</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 (D)</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 (A)</p> Signup and view all the answers

Which characteristic is least likely associated with concentrated marketing?

<p>Focus on multiple large market segments (B)</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. (C)</p> Signup and view all the answers

Flashcards

Market Segmentation Variables (Consumer)

Methods used to categorize consumers for targeted marketing.

Geographic Segmentation

Dividing markets based on location (cities, countries, etc.).

Psychographic Segmentation

Dividing markets based on lifestyle, personality, and social class.

Intermarket Segmentation

Grouping consumers across different countries with similar needs.

Signup and view all the flashcards

Business Market Segmentation Variables (additional)

Characteristics for segmenting business customers besides consumer variables. Includes operating characteristics, purchasing approaches, situational factors, and personal characteristics

Signup and view all the flashcards

Behavioral Segmentation

Dividing the market based on consumer behavior (e.g., usage rate, product benefits).

Signup and view all the flashcards

Benefits Sought

Segmenting by the benefits consumers look for in a product.

Signup and view all the flashcards

User Status

Segmenting based on whether a consumer is a first-time user, regular user, etc.

Signup and view all the flashcards

Usage Rate

Segmenting based on how often consumers use a product (heavy, medium, light, nonuser).

Signup and view all the flashcards

Loyalty Status

Segmenting based on customer loyalty to a brand or product.

Signup and view all the flashcards

Customer-driven marketing strategy steps

Market segmentation, targeting, differentiation, and positioning are the key steps to design a customer-driven marketing strategy.

Signup and view all the flashcards

Market Segmentation

Dividing a market into smaller segments with shared needs, characteristics or behaviors that necessitate separate marketing strategies or mixes.

Signup and view all the flashcards

Consumer market segmentation

Segmenting markets based on consumer characteristics.

Signup and view all the flashcards

Business market segmentation

Segmenting markets based on businesses' needs.

Signup and view all the flashcards

Effective segmentation requirements

Measurable, accessible, substantial, differentiable and actionable segments are crucial for success.

Signup and view all the flashcards

Market Targeting

Evaluating the attractiveness of market segments and deciding which to pursue.

Signup and view all the flashcards

Differentiation

Creating a unique product or service position to stand out from competitors.

Signup and view all the flashcards

Positioning

Developing a distinct image or perception of a product/brand in the minds of customers.

Signup and view all the flashcards

Concentrated Marketing

A strategy where a company focuses on gaining a large share of a smaller, specific market segment.

Signup and view all the flashcards

Benefits of Concentrated Marketing

Focusing on a specific niche can yield: efficient resource use, expert knowledge, strong market position, and lower competition.

Signup and view all the flashcards

Micromarketing

Tailoring products and marketing messages to individual customers or very small groups.

Signup and view all the flashcards

Local Marketing

Adapting marketing strategies to the unique needs of local communities or neighborhoods.

Signup and view all the flashcards

Individual Marketing

Creating products and marketing specifically for individual customers, known as one-to-one marketing or mass customization.

Signup and view all the flashcards

FitMyFoot

Illustrates individual marketing by 3D printing custom-fitting footwear based on images submitted by customers.

Signup and view all the flashcards

Choosing Targeting Strategy Factors

Factors to consider when selecting a targeting strategy include company resources, product variability, product life cycle stage, market variability, and competitor strategies.

Signup and view all the flashcards

Market Variability

Fluctuations in the market that can affect targeting strategies. Companies need to consider how these changes might impact their target market.

Signup and view all the flashcards

Competitive Advantage

A benefit a company has over its rivals by offering greater value to consumers, either through lower prices or by providing more benefits that justify higher prices.

Signup and view all the flashcards

Important Differentiation

The difference you offer delivers a highly valued benefit to target buyers.

Signup and view all the flashcards

Distinctive Differentiation

Competitors do not offer the same difference, or you can offer it in a more unique way.

Signup and view all the flashcards

Superior Differentiation

The difference is better than other ways customers might obtain the same benefit.

Signup and view all the flashcards

Communicable Differentiation

The difference is visible and easy for buyers to understand.

Signup and view all the flashcards

Preemptive Differentiation

Competitors cannot easily copy the difference you offer.

Signup and view all the flashcards

Socially Responsible Targeting

A marketing strategy where companies consider the ethical implications of their targeting decisions, evaluating not just if consumers like their products but also whether they use them wisely.

Signup and view all the flashcards

Product Position

The way consumers perceive and define a product based on important attributes. It represents the product's image in their mind, reflecting their impressions, feelings, and beliefs.

Signup and view all the flashcards

Positioning Map

A visual tool used to show how consumers perceive different brands in a market based on key attributes. It helps marketers analyze brand positioning relative to competitors.

Signup and view all the flashcards

What is an example of a positioning map?

A positioning map could show the placement of luxury SUVs based on price and orientation. Luxury brands at the high end priced, while performance SUVs could be positioned at higher performance options.

Signup and view all the flashcards

Steps for Choosing Differentiation and Positioning Strategies

  1. Identify potential competitive advantages. 2. Choose the right competitive advantages to highlight. 3. Select an overall positioning strategy. 4. Communicate and deliver the chosen position to the target market.
Signup and view all the flashcards

Overall Positioning Strategy

The overarching plan for how a product will be positioned in the market, including its target audience, key benefits, and desired perception.

Signup and view all the flashcards

Communicate and Deliver Chosen Position

The process of effectively conveying and delivering the chosen product positioning to the target market, through marketing campaigns, branding, and customer interactions.

Signup and view all the flashcards

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).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

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.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser