Principles of Marketing - Segmentation and Positioning
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Questions and Answers

What is NOT a criterion used in demographic segmentation?

  • Psychographics (correct)
  • Gender
  • Education
  • Income

    • Which basis for segmentation focuses on consumer preferences and lifestyle?

  • Psychographic segmentation (correct)
  • Behavioristic segmentation
  • Demographic segmentation
  • Geographic segmentation

    • Why do consumer goods firms often use geographic segmentation?

  • To analyze income distributions
  • To cater to regional preferences (correct)
  • To identify demographic trends
  • To enhance psychographic profiles

    • Which of the following is NOT a base for segmentation of consumer markets?

    <p>Technical</p> Signup and view all the answers

    What characteristic must market segmentation have to be considered viable and sustainable?

    <p>It must be identifiable and measurable.</p> Signup and view all the answers

    Which condition is NOT necessary for effective benefit segmentation?

    <p>Must be consistent across all demographics</p> Signup and view all the answers

    What is a key challenge in the segmentation process?

    <p>Selecting too many criteria</p> Signup and view all the answers

    Which targeting strategy focuses on a single segment of the market?

    <p>Concentrated targeting</p> Signup and view all the answers

    What is a benefit of marketing segmentation?

    <p>Increased ability to avoid unprofitable segments</p> Signup and view all the answers

    What should a firm consider when developing a brand positioning strategy?

    <p>Product offerings for targeted segments</p> Signup and view all the answers

    What does NOT represent a difficulty in market segmentation?

    <p>Identifying customer preferences</p> Signup and view all the answers

    Which targeting strategy involves creating different products for multiple segments?

    <p>Differentiated targeting</p> Signup and view all the answers

    What is NOT an effect of segmentation on marketing?

    <p>Complete market domination</p> Signup and view all the answers

    What is the primary goal of differentiation in marketing?

    <p>To provide something valuable that competitors do not</p> Signup and view all the answers

    Which method is used to construct a perceptual map based on how similar products are perceived to be?

    <p>Overall similarity method</p> Signup and view all the answers

    What is the first step in the positioning process?

    <p>Identifying the current position of the brand and competitors</p> Signup and view all the answers

    Which of the following is NOT a positioning base mentioned?

    <p>Brand loyalty</p> Signup and view all the answers

    What is the primary focus of market segmentation?

    <p>Dividing the total market into homogeneous segments</p> Signup and view all the answers

    What could indicate the need for repositioning a product?

    <p>Shifts in customer tastes and preferences</p> Signup and view all the answers

    Which approach is NOT a method of market segmentation?

    <p>Limited marketing</p> Signup and view all the answers

    Which of the following positioning strategies is focused on a product class?

    <p>Product user positioning</p> Signup and view all the answers

    What does targeting a market segment involve?

    <p>Evaluating the attractiveness of each segment</p> Signup and view all the answers

    When developing a positioning statement, what is its primary purpose?

    <p>To serve as a blueprint for achieving the desired brand position</p> Signup and view all the answers

    What is the essence of positioning in marketing?

    <p>Establishing a distinct consumer perception of a brand</p> Signup and view all the answers

    Which of the following is a reason for a product to not be positioned correctly initially?

    <p>Shifts in macro environment factors</p> Signup and view all the answers

    Which statement best describes one-to-one marketing?

    <p>Tailoring marketing efforts to individual customers</p> Signup and view all the answers

    What characterizes a differentiated marketing strategy?

    <p>Developing a unique product for each market segment</p> Signup and view all the answers

    What is a perceptual map used for?

    <p>Visualizing consumer preferences and brand positioning</p> Signup and view all the answers

    Which of the following best describes repositioning?

    <p>Changing a product's market segment to increase sales</p> Signup and view all the answers

    What is crucial for a firm to successfully reposition a brand?

    <p>The firm must ensure the product meets consumers' desired attributes.</p> Signup and view all the answers

    Which factor is NOT considered in the repositioning process?

    <p>The current marketing campaigns of competitors.</p> Signup and view all the answers

    What is a suggested positioning option for a marketing strategy?

    <p>Positioning based on perceived best features or services.</p> Signup and view all the answers

    How should a marketing manager approach the relationship between offline and online marketing strategies?

    <p>They should integrate and consider both strategies together.</p> Signup and view all the answers

    Which of the following is necessary for remaining competitive according to the content?

    <p>Using segmentation, targeting, and positioning effectively.</p> Signup and view all the answers

    What is the primary basis for psychographic segmentation?

    <p>Psychological and lifestyle criteria</p> Signup and view all the answers

    Which of the following is NOT a variable used in psychographic segmentation?

    <p>Consumer attitudes</p> Signup and view all the answers

    What type of segmentation focuses on how customers use a product?

    <p>Behavioral segmentation</p> Signup and view all the answers

    Which approach does NOT fall under behavioral segmentation categories?

    <p>Personality traits</p> Signup and view all the answers

    What category of benefits from segmentation does NOT include functional benefits?

    <p>Price benefits</p> Signup and view all the answers

    Which of the following groups would be considered 'laggards' in the rate of new product adoption?

    <p>Individuals who are skeptical and adopt last</p> Signup and view all the answers

    Which of the following is an example of loyalty segmentation?

    <p>Hard-core loyals</p> Signup and view all the answers

    What type of segmentation might analyze the frequency of consumer purchases?

    <p>Behavioral segmentation</p> Signup and view all the answers

    Study Notes

    Principles of Marketing

    • Introduction:
      • Firms must establish a distinct and unique brand identity in customer minds reflecting their offerings
      • Segmentation, Targeting and Positioning (STP) is a critical managerial approach
      • Identifies customer sub-markets
      • Selects specific target markets
      • Differentiates the product/service from competitors'
    • Segmentation:
      • Dividing the total market for a product/category into segments
      • Groups are relatively homogeneous.
      • Crucial for evaluating attractiveness and aligning with company resources
    • Nature of Consumer Markets:
      • A group of individuals/firms with desire/need for products (ability, willingness, and authority to buy)
      • A product class includes substitutable products.
    • Market Segmentation:
      • Mass marketing: Targets entire market
      • Differentiated marketing: Targets several market segments
      • Niche marketing: Targets a specific, narrow segment
      • One-to-one marketing: Personalised approach to each customer
    • Criteria for Market Segmentation:
      • Identifiable and measurable: Clear and quantifiable segment profiles
      • Substantial: Significant size and purchasing power to justify marketing efforts.
      • Accessible: Firms can reach and effectively serve the segment.
      • Responsive: Customers within the segment react similarly to marketing efforts.
      • Viable and sustainable: Sufficient size, reasonable growth potential and profitability.
    • Bases for Segmentation:
      • Demographic: Gender, income, age, education, family life cycle
      • Geographic: Region, city, suburb, density, climate
      • Psychographic: Attitudes, lifestyle, values, personality traits; includes specific variables like activities, interests, and opinions.
      • Behaviouristic: Product use, benefits sought, buyer readiness, brand loyalty (including categories like hard-core loyals, split loyals, shifting loyals, and switchers)
      • Needs and benefits: Customers seeking specified product attributes (functional, psychological, relationship, process).
    • Segmentation Process:
      • Identifying/profiling customers
      • Evaluating the segment's attractiveness
      • Positioning the firm's market offer
    • Targeting Strategies:
      • Concentrated targeting: Focuses on one specific segment
      • Differentiated targeting: Targets several segments
      • Undifferentiated targeting: Targets entire market
    • Positioning:
      • Strategically placing the brand in the minds of consumers.
      • This differentiates the firm's offerings in the relevant market segment.
      • Methods: Technology, origin, competitor, product class, product user, benefit, price, quality, use/application.
    • Perceptual Maps:
      • Visual tools that illustrate consumer perceptions of brands in a market segment, using attributes and ratings to map brand positions.
      • Uses "overall similarity method", "attribute rating method"
    • Positioning Process:
      • Identify current brand and competitor positions
      • Determine preferred market attributes
      • Decide how to modify (or not) current positioning strategies
      • Create positioning statements
    • Repositioning:
      • Necessary when a product isn't positioned correctly or competitors have encroached on the position.
      • Factors include poor original strategy, competitor actions, changing customer tastes/preferences or significant macro environmental factors, technological advancements, or research discoveries.
    • Digital Perspectives:
      • Use of digital platforms for segmentation, targeting and positioning
      • Social media, data collection, etc., offer significant information and insights
      • Important to link online and offline marketing strategies
    • Summary:
      • Utilize segmentation, targeting, and positioning to enhance competitiveness
      • Adapt the strategies to reflect changing market conditions.

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    Principles of Marketing PDF

    Description

    Explore the essential principles of marketing, focusing on Segmentation, Targeting, and Positioning (STP). Understand how firms create unique brand identities and how they can effectively segment and target consumer markets to maximize their offerings. This quiz will deepen your understanding of consumer behavior and market dynamics.

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