Segmentation, Targeting & Positioning
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What is the first step in the market segmentation process?

  • Selecting the target market
  • Evaluating the segments
  • Profiling the segments
  • Forming market segments (correct)

    • Which method is primarily used for creating segments in business-to-business markets?

  • Build-up method (correct)
  • Breakdown method
  • Customer journey analysis
  • Market demand forecasting

    • How are segments evaluated in the segmentation process?

  • Based on their geographical location
  • By financial and strategic criteria (correct)
  • Using qualitative criteria only
  • Through competitor analysis

    • What is created during the profiling of segments?

    <p>Detailed buyer profiles</p> Signup and view all the answers

    What characterizes the breakdown method in market segmentation?

    <p>It divides large, diverse markets into homogeneous segments.</p> Signup and view all the answers

    Which of the following is NOT a basis for profiling segments?

    <p>Historical sales data</p> Signup and view all the answers

    What is the purpose of the 'target market selection' step in the segmentation process?

    <p>To select and focus on a specific market segment</p> Signup and view all the answers

    What type of markets does the breakdown method primarily apply to?

    <p>Business-to-consumer markets</p> Signup and view all the answers

    What is a primary aim of a differentiated marketing strategy?

    <p>To increase overall sales by targeting various segments with tailored offerings</p> Signup and view all the answers

    Which factor significantly influences the choice of marketing strategy according to company resources?

    <p>Product variability and organization’s capacity</p> Signup and view all the answers

    What is a risk associated with a differentiated marketing strategy?

    <p>Potential overspending on marketing across multiple segments</p> Signup and view all the answers

    When is undifferentiated marketing most effective?

    <p>When marketing homogeneous products like commodities</p> Signup and view all the answers

    What might result from significant rivals entering a market with a concentrated marketing approach?

    <p>A potential takeover bid by a larger company</p> Signup and view all the answers

    Which aspect should a marketing manager assess when deciding on a marketing approach?

    <p>The balance between increased costs and expected sales growth</p> Signup and view all the answers

    How does product life cycle influence marketing strategy?

    <p>It affects whether a company should use undifferentiated or concentrated marketing</p> Signup and view all the answers

    Why might a company choose to focus on only one marketing segment?

    <p>To dominate a niche and enhance brand loyalty</p> Signup and view all the answers

    What is the market condition that allows for an undifferentiated marketing strategy to be effective?

    <p>Consumers have the same preferences and quantity purchased</p> Signup and view all the answers

    What does Market Positioning primarily depend on?

    <p>Market structure and competitive position</p> Signup and view all the answers

    What role does differentiation play in marketing strategy?

    <p>Addresses specific consumer needs and preferences</p> Signup and view all the answers

    What should a marketing manager consider about competitors when devising their strategy?

    <p>The rival's marketing approach and segmentation</p> Signup and view all the answers

    Which of the following best defines 'positioning' in a marketing context?

    <p>A product's place in the consumer's mind relative to competitors</p> Signup and view all the answers

    What is a critical factor for evaluating product positioning?

    <p>Consumer and organizational purchasers' views on the product</p> Signup and view all the answers

    What strategy should a firm adopt if its competitors are utilizing differentiated marketing strategies?

    <p>Invest in product differentiation</p> Signup and view all the answers

    How can product image influence market positioning?

    <p>It shapes customers' perceptions and attitudes towards the product</p> Signup and view all the answers

    What is the primary purpose of market segmentation?

    <p>To divide a market into smaller groups with distinct needs</p> Signup and view all the answers

    Which type of segmentation divides the market based on consumer location?

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

    According to the definitions provided, which of the following is true?

    <p>Segmenting leads to a better understanding of customer requirements</p> Signup and view all the answers

    Which of the following categories is NOT a basis of market segmentation?

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

    What is one benefit of market segmentation mentioned in the content?

    <p>It allows for tailored marketing strategies for different customer groups</p> Signup and view all the answers

    Which statement best describes the differences within a market segment?

    <p>Buyers within a segment should be similar in wants and needs</p> Signup and view all the answers

    How do businesses generally differentiate their segmentation strategies from individual consumer markets?

    <p>By varying the method of segmentation based on the market type</p> Signup and view all the answers

    What is a potential outcome of effectively understanding customer segments?

    <p>Better alignment of offerings with consumer needs</p> Signup and view all the answers

    What is primarily exposed when product positioning is coupled with effective market segmentation?

    <p>True value of product positioning</p> Signup and view all the answers

    Which of the following is NOT a consideration when positioning a product within a product line?

    <p>Exclusive pricing strategies for the product</p> Signup and view all the answers

    What can be considered an alternative base for positioning a product?

    <p>Product attributes and benefits</p> Signup and view all the answers

    What is the main focus of benefit positioning?

    <p>Discussing what the product does for the customer</p> Signup and view all the answers

    Why is segment-based positioning preferred over single positioning strategies?

    <p>It caters to the unique variances within market segments</p> Signup and view all the answers

    Which approach helps in reducing product duplication within a company's offerings?

    <p>Distinctive positioning of each product</p> Signup and view all the answers

    Which of the following best describes the concept of 'feature positioning'?

    <p>Highlighting both quantifiable advantages and intangible benefits</p> Signup and view all the answers

    In market positioning, why is it important to consider rivals' products?

    <p>To establish clearer distinctions in the market</p> Signup and view all the answers

    What is the main focus of an undifferentiated marketing strategy?

    <p>Creating a marketing program for the entire market</p> Signup and view all the answers

    What is a significant challenge faced by marketers using an undifferentiated marketing strategy?

    <p>Competing with niche marketing strategies</p> Signup and view all the answers

    Under what circumstances would a company likely use a concentrated marketing strategy?

    <p>When facing high competition and limited resources</p> Signup and view all the answers

    What advantage do companies gain from concentrated marketing?

    <p>Enhanced operational efficiencies leading to better returns</p> Signup and view all the answers

    How do marketers using an undifferentiated strategy approach customer preferences?

    <p>By merging preferences into broader patterns</p> Signup and view all the answers

    What is one potential downside to a company using an undifferentiated marketing approach?

    <p>Challenges in differentiating from competitors</p> Signup and view all the answers

    What distinguishes concentrated marketing from undifferentiated marketing?

    <p>The former concentrates on specific segments while the latter ignores them.</p> Signup and view all the answers

    Which marketing strategy is more likely to succeed for smaller producers?

    <p>Concentrated marketing due to market adaptability</p> Signup and view all the answers

    Study Notes

    Segmentation, Targeting & Positioning

    • Markets are heterogeneous, with diverse individual needs and desires
    • Market segmentation identifies smaller markets within a larger market
    • Market segmentation allows for creation of marketing mixes tailored to specific groups
    • Market segmentation was first proposed in the mid-1950s by Wendell R. Smith
    • Market segmentation breaks down a large, heterogeneous market into smaller homogenous segments
    • Elements within each segment are more similar to each other than to the total market
    • A separate marketing program is developed to best suit each market segment
    • Market segmentation subdivides a market into distinct and homogenous subgroups
    • Customer groups within a segment are similar in needs, characteristics or behaviors
    • Market segments should be created in such a way that differences between buyers within each segment are minimized

    Bases of Market Segmentation

    • Geographic segmentation (e.g., region, size, population density, climate)
    • Demographic segmentation (e.g., age, gender, income, occupation, family size, education)
    • Psychographic segmentation (e.g., lifestyle, values, personality, interests)
    • Behavioral segmentation (e.g., usage rate, brand loyalty, purchase occasion)

    Requisites of Effective Segmentation

    • Segments should be identifiable and measurable
    • Segments should be accessible through distribution and communication
    • Segments should be substantial enough to be profitable
    • Segments should be responsive to marketing efforts
    • Segments should be stable for the company to work with for a reasonable period

    Processes of Market Segmentation

    • Form segments (decide the basis, profile the segments)
    • Evaluate segments (evaluate segments by means of financial and strategic criteria)
    • Target market selection (select the segment and target the segment)

    Target Marketing

    • Target markets are sets of purchasers with shared wants, characteristics
    • Selection of the target market is very important for companies
    • Marketers need to understand customer decision-making criteria, characteristics, and lifestyles
    • Different marketing strategies exist (concentrated, differentiated, undifferentiated)

    Differentiation & Positioning

    • Positioning refers to the place a product occupies in the market, relative to competitors
    • Consumers' views of product positions should be considered
    • Benefit positioning focuses on the benefits customers seek from a product
    • Positioning strategies involve identifying and addressing different needs within a market
    • Positioning strategies require communicating the product's key attributes distinctly
    • Differentiation is creating unique value in the minds of consumers

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    Week 3 - Segmentation, Targeting & Positioning PDF

    Description

    This quiz covers the fundamentals of market segmentation, targeting, and positioning. It explores the importance of understanding diverse consumer needs and how to tailor marketing strategies to distinct market segments. Test your knowledge on the various bases of market segmentation and the historic background of the concept.

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