14 Questions
The product positioning approach based on product attributes is a common practice.
True
Product positioning is only applicable in consumer markets.
False
Communications objectives include enhancing firm image and increasing market share.
True
There is only one method of determining marketing communication budgets.
False
The percentage of sales method of budgeting is not commonly used.
False
The objective and task method is not considered the best method of budgeting.
False
The 'what we can afford' method of budgeting views marketing as a crucial investment.
False
Payout planning is a type of marketing communication budgeting method.
True
A market segment is viable if it is not distinct from the population as a whole.
False
Usage segmentation is based on demographic characteristics.
False
Size of business is a method of segmenting B-to-B markets.
True
Product positioning is the process of creating a marketing campaign.
False
A market segment must be reachable through personal selling only.
False
Customer value is a method of segmenting B-to-B markets.
True
Study Notes
Product Positioning Approaches
- Product positioning approaches include product attributes, competitors, use or application, price/quality, product user, product class, and cultural symbol.
Elements of Positioning
- Positioning is never completely fixed and applies to business-to-business markets as well.
- International positioning is important, and it is a critical component of image and brand management.
Communication Objectives
- Develop brand awareness
- Increase category demand
- Change customer beliefs and attitudes
- Enhance purchase actions
- Encourage repeat purchases
- Build customer traffic
- Enhance firm image
- Increase market share
- Increase sales
- Reinforce purchase decisions
Methods of Determining Marketing Communication Budgets
- Percentage of sales
- Meet-the-competition
- "What we can afford"
- Objective and task
- Payout planning
- Quantitative models
Types of Budgets
- Percentage of sales: based on sales of the current year or next year, simple but tends to work in the opposite direction and does not meet special needs.
- Meet the competition: seeks to prevent market share loss, suitable for highly competitive markets, but may not spend dollars efficiently.
- What we can afford: set after all other items are budgeted, does not view marketing as important.
- Objective and task: budgets determined by objectives, considered the best method, used by 50% of firms.
Tests to Determine if a Particular Market Segment Is Viable
- The segment is homogeneous.
- The segment is distinct from the population as a whole and other market segments.
- The segment is large enough to be financially viable to target with a separate marketing campaign.
- The segment must be reachable through some type of media or marketing communications method.
Usage Segmentation
- Based on usage or purchase history.
- Create clusters of customers based on usage.
- Target specific clusters with marketing programs.
- Measure growth and migration between clusters.
Methods of Segmenting B-to-B Markets
- Industry (NAICS/SIC codes)
- Size of business
- Geographic location
- Product usage
- Customer value
Product Positioning
- The perception created in the consumer's mind regarding the nature of the company and its products relative to the competition.
- Created by factors such as product quality, price, distribution, image, and marketing communications.
Learn about the different approaches to product positioning, including product attributes, competitors, and cultural symbols, as well as its importance in business and international markets.
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