28 Questions
Which product positioning approach focuses on the features of a product?
Product attributes
What is a critical component of image and brand management?
Elements of positioning
Which of the following is NOT an objective of marketing communication?
Reduce sales
What is the simplest method of determining marketing communication budgets?
Percentage of sales
Which budgeting method determines budgets based on objectives?
Objective and task
What is a disadvantage of the 'what we can afford' budgeting method?
It does not view marketing as important
Which of the following is NOT a type of budget?
Market segmentation
What percentage of firms use the objective and task budgeting method?
50%
What is a characteristic of a viable market segment?
It is homogeneous
What is the purpose of creating clusters in usage segmentation?
To target specific clusters
What is product positioning?
The perception created in the consumer's mind regarding the nature of the company and its products
What is one of the methods of segmenting B-to-B markets?
Geographic location
What is a factor that creates product positioning?
Product quality
What is the final step in the usage segmentation process?
Measure growth and migration
What makes a market segment financially viable?
It is large enough to be targeted with a separate marketing campaign
What is the purpose of creating clusters in usage segmentation?
To create marketing programs for each cluster
What is product positioning?
The perception created in the consumer's mind regarding the nature of the company and its products
What is one of the methods of segmenting B-to-B markets?
All of the above
What factor creates product positioning?
All of the above
What is the final step in the usage segmentation process?
Measure growth and migration
What is the main goal of product positioning?
To differentiate a product from its competitors
What is the primary focus of the 'product user' approach to product positioning?
Demographic characteristics of the product user
What is the main objective of the 'payout planning' method of determining marketing communication budgets?
To maximize the return on investment in marketing
What is a characteristic of the 'percentage of sales' method of determining marketing communication budgets?
It is a simple and easy-to-use method
What is the primary advantage of the 'objective and task' method of determining marketing communication budgets?
It is based on the firm's marketing objectives
What is the main disadvantage of the 'meet-the-competition' method of determining marketing communication budgets?
It may not be efficient in terms of resource allocation
What is the main goal of the 'change customer beliefs and attitudes' communication objective?
To influence customer perceptions and attitudes
What is the primary focus of the 'quantitative models' method of determining marketing communication budgets?
To use mathematical models to determine marketing expenditure
Study Notes
Product Positioning Approaches
- Product positioning approaches include product attributes, competitors, use or application, price/quality, product user, product class, and cultural symbol.
Elements of Positioning
- Positioning is never completely fixed and applies to business-to-business markets as well.
- International positioning is important, and it is a critical component of image and brand management.
Communication Objectives
- Develop brand awareness
- Increase category demand
- Change customer beliefs and attitudes
- Enhance purchase actions
- Encourage repeat purchases
- Build customer traffic
- Enhance firm image
- Increase market share
- Increase sales
- Reinforce purchase decisions
Methods of Determining Marketing Communication Budgets
- Percentage of sales
- Meet-the-competition
- "What we can afford"
- Objective and task
- Payout planning
- Quantitative models
Types of Budgets
- Percentage of sales: based on sales of the current year or next year, simple but tends to work in the opposite direction and does not meet special needs.
- Meet the competition: seeks to prevent market share loss, suitable for highly competitive markets, but may not spend dollars efficiently.
- What we can afford: set after all other items are budgeted, does not view marketing as important.
- Objective and task: budgets determined by objectives, considered the best method, used by 50% of firms.
Tests to Determine if a Particular Market Segment Is Viable
- The segment is homogeneous.
- The segment is distinct from the population as a whole and other market segments.
- The segment is large enough to be financially viable to target with a separate marketing campaign.
- The segment must be reachable through some type of media or marketing communications method.
Usage Segmentation
- Based on usage or purchase history.
- Create clusters of customers based on usage.
- Target specific clusters with marketing programs.
- Measure growth and migration between clusters.
Methods of Segmenting B-to-B Markets
- Industry (NAICS/SIC codes)
- Size of business
- Geographic location
- Product usage
- Customer value
Product Positioning
- The perception created in the consumer's mind regarding the nature of the company and its products relative to the competition.
- Created by factors such as product quality, price, distribution, image, and marketing communications.
Product Positioning Approaches
- Product positioning approaches include product attributes, competitors, use or application, price/quality, product user, product class, and cultural symbol.
Elements of Positioning
- Positioning is never completely fixed and applies to business-to-business markets as well.
- International positioning is important, and it is a critical component of image and brand management.
Communication Objectives
- Develop brand awareness
- Increase category demand
- Change customer beliefs and attitudes
- Enhance purchase actions
- Encourage repeat purchases
- Build customer traffic
- Enhance firm image
- Increase market share
- Increase sales
- Reinforce purchase decisions
Methods of Determining Marketing Communication Budgets
- Percentage of sales
- Meet-the-competition
- "What we can afford"
- Objective and task
- Payout planning
- Quantitative models
Types of Budgets
- Percentage of sales: based on sales of the current year or next year, simple but tends to work in the opposite direction and does not meet special needs.
- Meet the competition: seeks to prevent market share loss, suitable for highly competitive markets, but may not spend dollars efficiently.
- What we can afford: set after all other items are budgeted, does not view marketing as important.
- Objective and task: budgets determined by objectives, considered the best method, used by 50% of firms.
Tests to Determine if a Particular Market Segment Is Viable
- The segment is homogeneous.
- The segment is distinct from the population as a whole and other market segments.
- The segment is large enough to be financially viable to target with a separate marketing campaign.
- The segment must be reachable through some type of media or marketing communications method.
Usage Segmentation
- Based on usage or purchase history.
- Create clusters of customers based on usage.
- Target specific clusters with marketing programs.
- Measure growth and migration between clusters.
Methods of Segmenting B-to-B Markets
- Industry (NAICS/SIC codes)
- Size of business
- Geographic location
- Product usage
- Customer value
Product Positioning
- The perception created in the consumer's mind regarding the nature of the company and its products relative to the competition.
- Created by factors such as product quality, price, distribution, image, and marketing communications.
This quiz covers various approaches to product positioning, including product attributes, competitors, use or application, and more. It also discusses elements of positioning, such as its dynamic nature and importance in international business and brand management.
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