Marketing Strategies: STP vs Mass Marketing

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Questions and Answers

What does brand equity primarily represent?

The physical assets owned by a company.
The total revenue generated by all products of a brand.
The commercial value derived from customer perception of a brand. (correct)
The trust customers place in the unique features of a product.

Which of the following is NOT a benefit of brand value for customers?

Reduces perceived risk when purchasing.
Tells something about product quality and consistency.
Helps identify products that might benefit them.
Increases the overall cost of products. (correct)

What is rebranding?

Changing the name, design, logo, or concept of a company. (correct)
Expanding a brand to new geographical markets.
Increasing production efficiency through technology.
Creating a new product line under an established brand.

What is one potential impact of strong brand equity on a firm?

Greater ability to build a story around its products. (C) Signup and view all the answers

How does word of mouth (WOM) affect brand power?

It can enhance or degrade brand reputation through personal recommendations. (A) Signup and view all the answers

Which of the following accurately describes a positioning statement?

A statement that identifies the targeted segment and the product's benefits. (A) Signup and view all the answers

What is the main purpose of brand associations?

To establish a connection between a brand and a concept in consumers' minds. (D) Signup and view all the answers

What was a key finding from McClure et al (2004) regarding brand impact?

Brands activate emotional centers of the brain in consumers. (B) Signup and view all the answers

Which of the following best defines a brand's conceptual role?

A promise of specific benefits and a relationship with consumers. (B) Signup and view all the answers

What is primarily meant by segmentation in marketing?

Evaluating and selecting target market segments based on needs. (B) Signup and view all the answers

What is the primary advantage of using the STP approach compared to mass marketing?

It allows for customization of marketing strategies. (A) Signup and view all the answers

Which of the following is NOT a part of the STP process?

Promotion (B) Signup and view all the answers

Why is customer centricity important in the context of STP?

It aligns product development with customer needs. (B) Signup and view all the answers

What are segmentation variables used for in market segmentation?

To define groups of consumers with common characteristics. (C) Signup and view all the answers

Which strategy involves tailoring the marketing mix to fit the specific needs of individual markets?

Micromarketing (C) Signup and view all the answers

What is a primary factor to consider when evaluating the attractiveness of a market segment?

The number of competitors and their strength. (B) Signup and view all the answers

Which of the following best describes positioning in marketing?

Creating a unique image of the brand in the consumer's mind. (C) Signup and view all the answers

What is the main goal of a value proposition?

To justify higher costs through additional benefits. (B) Signup and view all the answers

Which segmentation type includes factors like lifestyle and personality?

Psychographic segmentation (D) Signup and view all the answers

In targeting strategies, what is Concentrated (Niche) Marketing primarily focused on?

Focusing on a single, specific segment. (D) Signup and view all the answers

Which of the following is NOT a base for positioning?

By product expiration date (A) Signup and view all the answers

What does differentiated marketing involve?

Employing different marketing mixes for different segments. (C) Signup and view all the answers

What is a potential drawback of mass marketing?

It may overlook specific consumer preferences. (C) Signup and view all the answers

Study Notes

STP (Segmentation, Targeting, Positioning)

A marketing strategy that involves dividing the market into segments, selecting one or more segments to target, and positioning the product or service in the minds of the target customers.
STP is more effective than mass marketing as it allows for more targeted and tailored marketing efforts.

Mass Marketing

A marketing strategy that involves using the same marketing mix for everyone in the market.
Employs a one-size-fits-all approach, with little to no segmentation of the market.
Focuses on reaching a broad audience with a generic message.

Segmentation

The process of dividing the market into distinct subsets of customers who share similar needs and characteristics.
Segmentation variables include demographic, geographic, behavioral, and psychographic factors.
Demographic variables include age, gender, income, education, and ethnicity.
Geographic variables include region, city size, density, and climate.
Behavioral variables include usage rate, loyalty, and purchase occasion.
Psychographic variables include lifestyle, personality, values, and attitudes.

Targeting

The process of selecting one or more segments to target with the marketing mix.
Target evaluation considers attractiveness (segment size, growth, customer worth, stability), compatibility (company and collaborators' ability to serve the segment), and competition (number and strength of competitors, ease of entry).
Targeting strategies include undifferentiated (mass) marketing, differentiated (segmented) marketing, concentrated (niche) marketing, and micromarketing.

Positioning

The act of creating a unique marketing mix that positions the product or service in the minds of target customers.
Positioning bases can be by attribute/benefit, price/quality, use/occasion, product user, competitor, and emotion.
Competitive advantage is an advantage over competitors gained by offering greater customer value through lower prices or providing more benefits that justify higher prices.
Value proposition is the full mix of benefits on which a brand is differentiated and positioned.
Positioning statement summarizes company or brand positioning using a specific format: "For (target segment), the (product) offers (benefit) because (competitive advantage)."

Branding

Brand association is the connection consumers form between a brand and a concept or entity.
Branding involves creating new associations or strengthening existing ones.
Brand value is the tangible and intangible benefits of a brand for both customers and the firm.
Brand equity is the commercial value derived from customer perception of the brand name.

The Power of Branding

Brands can impact experiences and perceptions at the neural level.
Word-of-mouth (WOM) is a powerful form of marketing, influenced by brand associations.
Rebranding involves altering the name, design, logo, or concept of an established company to develop a new identity.

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Description

This quiz explores key marketing strategies including STP (Segmentation, Targeting, Positioning) and mass marketing. Learn about the effectiveness of targeted marketing versus a one-size-fits-all approach and the various segmentation variables used in the process. Test your knowledge on these fundamental concepts of marketing.