Marketing Strategy Chapter 7

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Questions and Answers

What is the main objective of local marketing?

To promote products globally without modifications.

To create a single marketing message for all customers.

To standardize marketing strategies for all customer segments.

To tailor brands and promotions to the needs of specific local segments. (correct)

Which term is synonymous with individual marketing?

Market segmentation

Niche marketing

One-to-one marketing (correct)

Mass production

What factor does NOT affect the choice of targeting strategy?

Company resources

Customer's income level (correct)

Product life-cycle stage

Market variability

Product positioning is defined by which of the following?

Consumers' perceptions of the product on important attributes. Signup and view all the answers

Which of the following is NOT part of the process for differentiating and positioning a product?

Setting a uniform price for all products Signup and view all the answers

What is the essence of competitive advantage in marketing?

Providing consumers with greater value through better pricing or benefits. Signup and view all the answers

How do positioning maps aid in product marketing?

They help visualize consumer perceptions of brands compared to competitors. Signup and view all the answers

Which of the following strategies is least likely to be considered in a differentiated marketing approach?

Developing uniform marketing messages for all customers. Signup and view all the answers

Which of the following is NOT a line along which competitive advantages can be differentiated?

Management Signup and view all the answers

What does a valuable competitive advantage need to be?

Important and distinctive Signup and view all the answers

Which component is part of the positioning statement format?

Target audience and product Signup and view all the answers

What is the purpose of a value proposition?

To summarize the full mix of benefits for a brand Signup and view all the answers

Why is maintaining a positioning statement considered challenging?

It requires consistent performance and communication Signup and view all the answers

In the context of positioning strategies, what does 'preemptive' mean?

A strategy that deters competition by uniqueness Signup and view all the answers

Which of the following is an essential characteristic of an effective positioning statement?

Clear identification of target segment Signup and view all the answers

What challenge is commonly faced when implementing a positioning strategy?

Aligning employee attitudes and actions Signup and view all the answers

What is intermarket segmentation primarily based on?

Similar needs and buying behaviors across different countries Signup and view all the answers

Which of these is NOT a requirement for effective market segmentation?

Predictable Signup and view all the answers

What is the main focus of undifferentiated marketing?

Targeting the whole market with one offer based on common needs Signup and view all the answers

How does differentiated marketing approach market segments?

It designs separate offers for each targeted segment. Signup and view all the answers

What is a characteristic of concentrated marketing?

It targets a small market segment with a unique strategy. Signup and view all the answers

What does micromarketing focus on?

Tailoring products to individual customer tastes and specific locations. Signup and view all the answers

What is NOT a factor in evaluating market segments?

Cultural influences on buying behavior Signup and view all the answers

Which market-targeting strategy would aim for the highest sales volume but at a higher cost?

Differentiated marketing Signup and view all the answers

Study Notes

Chapter 7: Customer Value-Driven Marketing Strategy

Customer value-driven marketing focuses on understanding customer needs and creating value
The process of customer-driven marketing begins with selecting customers, segmenting the total market into smaller segments, targeting specific segments, and creating value for targeted customers.
Differentiation creates value by differentiating the product offering
Positioning involves placing the market offering in the minds of target customers, creating a competitive advantage.
Market segmentation divides a market into segments with distinct needs, characteristics, or behaviors.

Learning Objectives

7-1: Defining the steps in customer-driven marketing strategy (segmentation, targeting, differentiation, positioning).
7-2: Listing and discussing major bases for segmenting consumer and business markets.
7-3: Explaining how companies identify attractive market segments and choose a market-targeting strategy.
7-4: Discussing how companies differentiate and position their products to maximize competitive advantage.

Market Segmentation

Dividing a market into smaller segments with distinct needs, characteristics, or behaviors.
Types of segmentation:
- Segmenting consumer markets: Geographic, demographic, psychographic, behavioral.
  - Geographic: Nations, regions, states, cities, neighborhoods.
  - Demographic: Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation.
  - Psychographic: Social class, lifestyle, personality characteristics.
  - Behavioral: Consumer knowledge, attitudes, uses of a product, or responses to a product; Occasions, benefits sought, user status, usage rate, loyalty status.
- Segmenting business markets: Additional variables like customer operating characteristics, purchasing approaches, situational factors, and personal characteristics.
- Segmenting international markets: Geographic location, economic factors, political and legal factors, cultural factors.
- Intermarket (cross-market) segmentation: Forming consumer segments with similar needs/buying behaviors across countries.

Requirements for Effective Segmentation

Measurable: Segment size and purchasing power can be measured.
Accessible: Segments can be effectively reached and served.
Substantial: Segments are large or profitable enough to serve.
Differentiable: Segments are conceptually distinguishable and respond differently to marketing efforts.
Actionable: Effective programs can be designed for attracting and serving the chosen segments.

Market Targeting

Evaluating Market Segments: Considering segment size & growth, segment structural attractiveness, and company objectives and resources.
Selecting Target Market Segments: Defining target markets as groups who share common needs/characteristics served by the company. Different targeting strategies include:
- Undifferentiated (mass) marketing: Targets whole market with one offer.
- Differentiated marketing: Targets several segments with separate offers.
- Concentrated (niche) marketing: Targets one or a few smaller segments.
- Micromarketing: Tailoring products and marketing programs to suit the tastes of specific individuals and locations (local or individual marketing).

Differentiation and Positioning

Product position: How consumers define a product based on attributes.
Choosing a Differentiation and Positioning Strategy: This involves identifying, selecting, and communicating the chosen position to consumers. Strategies include:
- Competitive advantages: Offering better value than competitors (lower prices/more benefits).
- Competitive advantages types: Product, services, channels, people, image.
- Positioning strategy elements: Important, distinctive, superior, communicable, preemptive, affordable, profitable.
Value proposition: The full mix of benefits upon which a brand is positioned.
Positioning statement: Summarizes company/brand positioning: To (target segment and need) our (brand) is (concept) that (point of difference).

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Description

Explore Chapter 7 on Customer Value-Driven Marketing Strategy. This quiz covers key concepts like market segmentation, targeting, differentiation, and positioning, which are essential for creating effective marketing strategies that cater to customer needs. Test your understanding of how to create value for targeted customers.