Kotler 2020, 8 kap.

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Questions and Answers

What is the primary advantage of differentiated marketing?

Lower marketing costs

Simplified product offerings

Broader market appeal

Higher total sales (correct)

What is a significant drawback of differentiated marketing?

Reduced brand loyalty

Decreased product variety

Limited market knowledge

Increased costs of doing business (correct)

How does concentrated marketing benefit a company?

It allows better knowledge of consumer needs (correct)

It requires less marketing research

It simplifies pricing strategies

It enables targeting a wide audience effectively

In the context provided, what is meant by a 'niche' market?

A small market segment with few or no competitors Signup and view all the answers

What scenario typically benefits from using a concentrated marketing strategy?

Small companies targeting specific overlooked segments Signup and view all the answers

What is a consequence of marketing to different segments with separate campaigns?

Higher marketing communications costs Signup and view all the answers

What strategic advantage does Accor Hotel Group achieve through its broad range of brands?

Greater and more stable market share Signup and view all the answers

Which aspect is most emphasized as a reason for companies to weigh when choosing a differentiated marketing strategy?

Increased sales versus increased costs Signup and view all the answers

Which type of market segmentation considers economic factors such as income levels and overall economic development?

Economic segmentation Signup and view all the answers

What is inter-market segmentation primarily focused on?

Identifying similar needs and buying behaviors across countries Signup and view all the answers

Which of the following must be true for market segments to be effective?

The segments must be measurable in terms of size and purchasing power. Signup and view all the answers

What is the primary goal of geographic segmentation in consumer markets?

To categorize markets into different geographical units Signup and view all the answers

Which segmentation factor relates to languages, religions, and behavioral patterns?

Cultural segmentation Signup and view all the answers

Which of the following is NOT a valid basis for segmenting international markets?

Personal interests and hobbies Signup and view all the answers

Which of the following best illustrates how companies adapt their products for local markets?

Volvo cars equipped with air conditioners in Australia. Signup and view all the answers

What might result from companies localizing their advertising efforts?

Better alignment with local consumer needs and preferences. Signup and view all the answers

What kind of segmentation would be least useful if buyers are differentiated by hair color for purchasing table salt?

Arbitrary segmentation Signup and view all the answers

A successful market segmentation strategy requires which of the following?

Considering both common traits and buying behaviors Signup and view all the answers

Why do fashion magazines like Cosmopolitan and Vogue produce different international editions?

To adapt to local tastes and cultural differences. Signup and view all the answers

Which market segmentation approach looks at factors such as government stability and bureaucracy?

Political and legal segmentation Signup and view all the answers

Which variable is NOT a basis for segmenting consumer markets?

Technographic Signup and view all the answers

How does geographic segmentation influence car manufacturing like in the case of Volvo?

Specifications are adapted to local driving conditions. Signup and view all the answers

What is an example of a geographic factor influencing consumer behavior?

Local climate affecting product features. Signup and view all the answers

How do different models of Volvo cars reflect geographic segmentation?

They include varying battery capacities to suit regional winters. Signup and view all the answers

Why do some marketers advocate for promoting only one benefit aggressively?

It simplifies the marketing message. Signup and view all the answers

What is one criterion that distinguishes a good differentiator?

The difference is communicated effectively to buyers. Signup and view all the answers

What was a significant flaw in Polaroid's Polavision product?

It was inferior to camcorders. Signup and view all the answers

Which of the following should NOT be a reason for establishing a brand difference?

To boost the company's production scale. Signup and view all the answers

What does the term 'pre-emptive' mean in the context of brand differentiation?

Competitors cannot easily copy the difference. Signup and view all the answers

Which aspect is NOT important for a difference to be meaningful to buyers?

The difference should create company costs. Signup and view all the answers

How has the fragmentation of the mass market affected companies' positioning strategies?

Companies are diversifying to appeal to multiple segments. Signup and view all the answers

What is the primary reason that not all brand differences are worthwhile promoting?

Not every difference creates customer benefits. Signup and view all the answers

What is 'less-for-much-less' positioning primarily focused on?

Meeting lower performance or quality requirements at a lower price Signup and view all the answers

Which airline is associated with offering the lowest levels of service?

Ryanair Signup and view all the answers

What notable characteristic is mentioned about Vapiano restaurants?

They are perceived as a fast-food chain Signup and view all the answers

What challenge do companies face when trying to sustain a 'best-of-both' positioning?

The continual increase of operating costs Signup and view all the answers

What can negatively impact the customer experience at Vapiano restaurants?

Long wait times for food Signup and view all the answers

What is a common feature of DollarStore's business model?

Very low prices with limited service Signup and view all the answers

What was a significant event for Vapiano's parent company in 2020?

Filing for bankruptcy Signup and view all the answers

Which of the following statements about modern customers is accurate?

They are increasingly looking for budget-friendly options. Signup and view all the answers

What is the main challenge companies face when trying to offer more for less?

It makes it difficult to deliver on the 'for less' promise. Signup and view all the answers

Which of the following best defines a positioning statement?

A statement that summarizes company or brand positioning. Signup and view all the answers

How should a positioning statement be structured?

To (target segment and need), our (brand) is (concept) that (point of difference). Signup and view all the answers

What concept does Amazon's positioning statement emphasize?

Customer obsession and operational excellence. Signup and view all the answers

Why is it important for a company to choose a specific positioning strategy?

It helps in differentiating from competitors. Signup and view all the answers

What must a company do after selecting its positioning?

Take concrete steps to deliver and communicate the desired position. Signup and view all the answers

What should align with the positioning strategy to ensure success?

All aspects of the marketing mix. Signup and view all the answers

What do the principles of Amazon's positioning reflect?

A commitment to customer service and innovation. Signup and view all the answers

Study Notes

Chapter 8 - Customer Value-Driven Marketing Strategy

Henkel's Persil is a global marketing success, demonstrating "glocal" marketing
Baby boomer marketing is not a hot topic for managers
Targeting affluent customers is a strategy for managers to command
Spendrups case study shows segmentation and customer orientation driving market changes
Fast fashion is an example of combining logistics with differentiated marketing
Stitch Fix is an example of online niching
Differentiation and positioning are key parts of marketing strategy
Segmentation, targeting, differentiation and positioning are major steps in designing customer-driven marketing strategies
Segmentation divides the market into smaller groups based on needs, characteristics, or behaviors, and requires separate marketing strategies.
Targeting is evaluating each market segment's attractiveness and deciding which to enter.
Differentiation distinguishes a firm's market offering to create superior value.
Positioning is creating a clear, distinctive position for the offering in the minds of target consumers.

Market Segmentation in Contemporary Markets

Segmentation is a core aspect of marketing theory and practice.
Companies divide consumers into subgroups to create tailored offers.
Benefits include reaching more customers, satisfying more customers, and increasing profitability
Companies cannot appeal to every buyer equally.
Companies must identify markets they can serve best.

Geographic Segmentation

Dividing a market into geographical units (nations, regions, cities, etc.).
Companies often localize products based on regional needs and preferences.

Demographic Segmentation

Dividing the market into groups based on variables like age, gender, family size, income, occupation, etc.
Demographics are useful because needs and wants often correlate closely with them -Age and life-cycle stage segmentation considers how consumer needs change with age.
- Be cautious about stereotypes when using age and life-cycle segmentation as age isn't always a good predictor of a person's lifestyle or needs.
Gender segmentation is dividing the market into groups based on gender.

Psychographic Segmentation

Dividing a market based on social grade, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing a market based on consumer knowledge, attitudes, uses, or responses to a product.

Market Targeting

Evaluating each market segment's attractiveness and deciding which one or ones to enter.
Evaluate segment size and growth,
- segment structural attractiveness, and
- company objectives and resources.
Right size and growth isn't always the most attractive, smaller segments can be more profitable if the skills and resources of the company match them.
Competitiveness in the market must be considered.

Market Positioning

The way a product is defined by customers relative to competing products. This is the market's perception of a product.

Value Proposition

The full mix of benefits upon which a brand is positioned and differentiated.
Key questions to answer: Which customers to serve? How to serve those customers?

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Description

This quiz explores essential concepts in marketing strategies, focusing on differentiated and concentrated marketing approaches. Participants will learn about niche markets, market segmentation, and the strategic advantages of various marketing tactics. Test your understanding of these critical marketing principles!