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Questions and Answers
What type of pizza does Segment 2 prefer?
What type of pizza does Segment 2 prefer?
Which segment shows a preference for average-to-lower prices?
Which segment shows a preference for average-to-lower prices?
What is a primary focus of conjoint analysis?
What is a primary focus of conjoint analysis?
Which of the following is NOT recorded in behavioral measures?
Which of the following is NOT recorded in behavioral measures?
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Which occasion segment is the largest by volume?
Which occasion segment is the largest by volume?
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What value is NOT included in the List of Values (LaV) scale?
What value is NOT included in the List of Values (LaV) scale?
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Which motive is associated with the introspective segment?
Which motive is associated with the introspective segment?
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What aspect does psychographic segmentation typically analyze?
What aspect does psychographic segmentation typically analyze?
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What is the primary focus of a needs-based approach to market segmentation?
What is the primary focus of a needs-based approach to market segmentation?
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Which segment of the mature market values nutrition the most?
Which segment of the mature market values nutrition the most?
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How do traditional couponers differ from other segments in their shopping behavior?
How do traditional couponers differ from other segments in their shopping behavior?
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What is the significance of forming groups of customers with similar needs?
What is the significance of forming groups of customers with similar needs?
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Which group relies heavily on convenience and microwave cooking?
Which group relies heavily on convenience and microwave cooking?
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What type of analysis can be used to segment markets based on consumer preferences?
What type of analysis can be used to segment markets based on consumer preferences?
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What percentage of the over-50 population is classified as nutrition concerned individuals?
What percentage of the over-50 population is classified as nutrition concerned individuals?
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In which market segment is price considered the most important attribute?
In which market segment is price considered the most important attribute?
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What is the first decision management must make when selecting a segmentation strategy?
What is the first decision management must make when selecting a segmentation strategy?
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Which company exemplifies targeting multiple market segments?
Which company exemplifies targeting multiple market segments?
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What ultimate segmentation strategy is indicated in the content?
What ultimate segmentation strategy is indicated in the content?
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How can competitive intelligence be described?
How can competitive intelligence be described?
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Which of the following is NOT one of the five fundamental questions of competitive analysis?
Which of the following is NOT one of the five fundamental questions of competitive analysis?
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What should a market profile analysis include?
What should a market profile analysis include?
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Which factor is NOT necessary for assessing the competitive environment of an industry?
Which factor is NOT necessary for assessing the competitive environment of an industry?
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What may increase the ability to tailor marketing strategies to individual customers?
What may increase the ability to tailor marketing strategies to individual customers?
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What is the primary focus of frequency marketing?
What is the primary focus of frequency marketing?
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How do complementary products typically benefit sellers?
How do complementary products typically benefit sellers?
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Which company is cited as having success with customer assistance systems?
Which company is cited as having success with customer assistance systems?
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What strategy is often used to enhance customer relationships through bundled offerings?
What strategy is often used to enhance customer relationships through bundled offerings?
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What can be a consequence of increasing the number of relationships between a seller and a buyer?
What can be a consequence of increasing the number of relationships between a seller and a buyer?
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Which is an example of a company using tailored customer databases for marketing?
Which is an example of a company using tailored customer databases for marketing?
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What is a primary goal of creating customer databases in frequency marketing?
What is a primary goal of creating customer databases in frequency marketing?
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Which of the following defines a technique for improving customer loyalty by bundling related products?
Which of the following defines a technique for improving customer loyalty by bundling related products?
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What is the primary purpose of primary-demand strategies?
What is the primary purpose of primary-demand strategies?
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What is an essential method used by marketing managers to understand market needs?
What is an essential method used by marketing managers to understand market needs?
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Which of the following is NOT a strategy to increase customers' willingness to buy?
Which of the following is NOT a strategy to increase customers' willingness to buy?
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What role do trade journals and external databases play in market analysis?
What role do trade journals and external databases play in market analysis?
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What is a potential benefit for firms that lead in established markets, such as Heinz or Microsoft?
What is a potential benefit for firms that lead in established markets, such as Heinz or Microsoft?
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Which of the following approaches can increase the number of product users?
Which of the following approaches can increase the number of product users?
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What is a common goal of market segmentation?
What is a common goal of market segmentation?
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Which statement correctly describes a benefit of demonstrating the basic benefits of a product form?
Which statement correctly describes a benefit of demonstrating the basic benefits of a product form?
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What was the main challenge Procter & Gamble faced when introducing Pampers disposable diapers?
What was the main challenge Procter & Gamble faced when introducing Pampers disposable diapers?
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What marketing strategy did Miller Lite advertisements emphasize?
What marketing strategy did Miller Lite advertisements emphasize?
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How did 3M expect to impact the soap pad market?
How did 3M expect to impact the soap pad market?
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What benefit does the American Iron and Steel Institute promote about steel framing?
What benefit does the American Iron and Steel Institute promote about steel framing?
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In which scenario is the primary-demand strategy particularly important?
In which scenario is the primary-demand strategy particularly important?
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What was one method to improve the ability to buy, mentioned in the content?
What was one method to improve the ability to buy, mentioned in the content?
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What can stimulate primary demand besides marketing strategies?
What can stimulate primary demand besides marketing strategies?
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What was a significant change observed in the cellular phone market in the late 1980s?
What was a significant change observed in the cellular phone market in the late 1980s?
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Study Notes
Marketing Strategies Review
- A market segment is a group of customers with similar product needs
- Market segmentation uses data on needs/benefits, purchase behavior, values, and demographics
- Jean manufacturers shifted from a one-size-fits-all approach to a more segmented one, responding to consumer preferences
- Market segmentation identifies differences in consumer preferences to create targeted strategies
- Market segmentation activities include segment formation/profiling, segment evaluation, and strategy selection
- Needs and benefits are product characteristics consumers value (benefit segmentation)
- Market segmentation examples include snowmobile users with different needs (weekend vs. hunters)
Needs and Benefits
- Needs and benefits are characteristics of a product that consumers value
- Benefit segmentation clusters consumers based on their desired benefits
- Example: Snowmobile users have different needs (weekend riders vs. hunters)
Market Segmentation in the Mature Market
- The mature market (over 50) has three segments:
- Nutrition-concerned (46%)
- Fast and healthy
- Traditional
Conjoint Data Analysis
- Conjoint analysis examines buyer preferences for product attributes
- Micro-based, calculates part-worth utilities for each respondent
- Uses a hypothetical scenario of various pizza options and scales preference
Behavioral Measures
- Measure past brand purchases, purchase intentions, and brand switching patterns
- Useful for understanding consumer behavior and developing brand loyalty
- Use consumption descriptions: when/where, meal type, quantity
Values/Lifestyle Measures
- Values and lifestyle measures are used to segment consumers based on activities, opinions, and interests
- Psychographic segmentation is used
- Values include belonging, excitement, fun, self-fulfillment, respect, relationships etc
- Example illustrates VALS program used for value analysis on tourist behavior
Classifying Characteristics
- Classifying characteristics consider geographic, demographic variables
- Geographical: region, state, etc
- Demographic: age, sex, income, education etc
Market Uniqueness, Responsiveness and Actionability
- A good market segmentation strategy achieves uniqueness between segments
- Segments should show responsiveness to marketing efforts (similar responses to similar factors)
- Needs-based segmentation should be actionable (measurable and usable in implementation)
Market Stability
- Market segments are often long-term, although the people in them can change
- Stability ensures the targeted segment persists over time
- Focus is on segment characteristics for stability and consistency
Profitability
- Evaluation of the segment's profitability is crucial
- Considerations include segment size, growth rate, and competitive advantage, as well as other applicable marketing criteria
- Marketing strategy must align with the mission in the long run
Primary-Demand Strategies
- Strategies to increase the overall demand for a product type (e.g., disposable diapers)
- Strategies are designed to increase the purchase rate and develop market share
- Focuses on appealing to nonusers and increasing the benefits to current users
Strategies for Expanding the Served Market
- Expand the served market, acquire competitors' customers, improve retention among existing customers
- Understanding the scope and segments of a market to be served
Broadening Distribution
- Effective distribution channels and outlets to make products accessible to the target market
- Firms that expand distribution and sales networks often develop a larger market share.
Product-Line Extension
- Adds new products to the current line (vertical vs horizontal extension: price vs features)
Head-To-Head Positioning
- Offering same benefits as competition but with improved qualities, a more extensive marketing effort, or recognized brand name recognition.
- Direct and explicit competition with regards to similar products
Differentiated Positioning
- Distinguishing oneself with unique attributes or by targeting a particular customer segment
- Indirect competition that capitalizes on different advantages and benefits
- Develop a competitive edge to attract target audience
Positioning and Brand Equity
- Creating brand equity by focusing on extensive brand awareness and strong brand associations.
- Maintaining high customer satisfaction,
- Developing complementary products, and building relationships
Relationship Marketing
- Aims to build close relationships with buyers for repeat business
- Membership programs, contractual guarantees, simplifying programs
- Increasing customer base responsiveness and loyalty by improving customer relations
Marketing Strategy
- Changing strategies for products over time due to competition
Product Life Cycle
- Product's sales over time (introduction, growth, maturity, decline)
- Marketing strategy adaptation over the product cycle
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Description
Test your understanding of marketing strategies and market segmentation. This quiz covers key concepts such as market segments, customer needs analysis, and targeted marketing strategies. Challenge yourself with real-world examples and scenarios in market segmentation.
