Strategic Marketing Segmentation and Targeting
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Questions and Answers

What is one reason a company may choose to target smaller market segments?

  • They require fewer resources to serve. (correct)
  • They are always more profitable.
  • They have a larger customer base.
  • They can dictate pricing strategies.

Which factor is NOT considered when evaluating the structural attractiveness of a market segment?

  • Historical performance of the segment. (correct)
  • Number of competitors in the market.
  • Power of suppliers needed to serve the segment.
  • Power of customers in the segment.

Why might viewing every buyer as a separate target be disadvantageous?

  • It can lead to reduced economies of scale. (correct)
  • It enhances customer satisfaction.
  • It makes market analysis easier.
  • It attracts more competition.

Which aspect should companies consider in relation to their objectives when selecting market segments?

<p>Their long-term strategy alignment. (D)</p> Signup and view all the answers

What is the primary aim of segmenting and targeting in marketing?

<p>Creating value for the selected segments. (B)</p> Signup and view all the answers

What aspect of products does behavioral segmentation primarily focus on?

<p>Knowledge, attitudes, uses, or responses to a product (D)</p> Signup and view all the answers

Which of the following describes the 'user status' segmentation?

<p>Categorizing users as non-users, ex-users, and regular users (A)</p> Signup and view all the answers

What is a potential drawback of relational marketing?

<p>Changing companies can be expensive for users (A)</p> Signup and view all the answers

Which type of segmentation includes dividing consumers into light, medium, and heavy users?

<p>Usage rate (C)</p> Signup and view all the answers

Which approach did Jazztel adopt regarding promotions for existing customers?

<p>Give better deals to non-users compared to existing users (D)</p> Signup and view all the answers

What strategy is employed by a wine shop to reward high loyalty users?

<p>Offering access to premium bottles based on past purchases (A)</p> Signup and view all the answers

How do occasions factor into behavioral segmentation?

<p>By grouping consumers according to their purchase occasions (B)</p> Signup and view all the answers

What is a characteristic of high loyalty users in the context of segmentation?

<p>They consistently purchase from the same brand and are less likely to switch (A)</p> Signup and view all the answers

What is a requirement for effective market segmentation?

<p>Segments must be large enough to be profitable (B)</p> Signup and view all the answers

Why must different segments exhibit different behavior?

<p>To ensure they can be effectively reached and served (D)</p> Signup and view all the answers

What should effective programs be designed to do?

<p>Serve the segments that are effectively reached (A)</p> Signup and view all the answers

Which of the following describes a target market?

<p>A set of buyers sharing common needs or characteristics (C)</p> Signup and view all the answers

What is a primary disadvantage of perfect competition for a brand?

<p>Homogeneous products and price competition (A)</p> Signup and view all the answers

What does product positioning refer to?

<p>The perception of a product in consumers’ minds relative to competitors (B)</p> Signup and view all the answers

What characteristic must segments have to facilitate effective segmentation?

<p>They must be differentiable from one another (A)</p> Signup and view all the answers

Which of the following is NOT a source of differentiation mentioned?

<p>Consumer behavior analysis (A)</p> Signup and view all the answers

What is one implication if a segment is not considered accessible?

<p>It may lead to wasted marketing resources (B)</p> Signup and view all the answers

What is meant by the Unique Selling Proposition (USP)?

<p>A single attribute that differentiates a brand (D)</p> Signup and view all the answers

What does the term ‘substantial’ refer to in the context of market segmentation?

<p>The number of customers in the segment (A)</p> Signup and view all the answers

Which brand is noted for having no carbonation as a point of differentiation?

<p>Trina (A)</p> Signup and view all the answers

If segments do not have distinct behaviors, what might be a likely outcome?

<p>The segments may not be worth targeting separately (C)</p> Signup and view all the answers

What is a characteristic of Ikea's service model?

<p>Best price without service assistance (B)</p> Signup and view all the answers

Why might a brand like La Roche-Posay choose to sell through pharmacies?

<p>To communicate a message of safety to consumers (B)</p> Signup and view all the answers

In the context of branding, what does the phrase 'brands are created in the mind' imply?

<p>Consumer perception is key to brand identity (D)</p> Signup and view all the answers

Which attribute is NOT required for a competitive advantage?

<p>Temporary (D)</p> Signup and view all the answers

What is the competitive positioning strategy for a brand that aims to charge less for the same benefits?

<p>The same for less (C)</p> Signup and view all the answers

Which of the following is an example of a brand that exemplifies a 'Less for much less' strategy?

<p>Hacendado (D)</p> Signup and view all the answers

What should a brand do when entering a market already occupied by another brand?

<p>Attack the brand or target lower positions (D)</p> Signup and view all the answers

Which positioning strategy involves providing more benefits while also increasing the price?

<p>More for more (C)</p> Signup and view all the answers

What is essential for a competitive advantage to be considered superior?

<p>It must outperform competition (A)</p> Signup and view all the answers

Which of the following is NOT a factor in selecting an overall positioning strategy?

<p>Market saturation (D)</p> Signup and view all the answers

Which of the following brands is known for a 'Less for much less' strategy?

<p>Hacendado (B)</p> Signup and view all the answers

What distinguishes concentrated marketing from other strategies?

<p>It focuses on a single segment's needs and wants. (A)</p> Signup and view all the answers

Which aspect of the marketing mix can vary between different segments?

<p>Price (A)</p> Signup and view all the answers

How did the new tonic water brand differentiate itself in the market?

<p>By focusing on a specific segment with a high-quality product. (A)</p> Signup and view all the answers

What is a potential benefit of niche marketing?

<p>It limits competition by focusing on unmet needs. (B)</p> Signup and view all the answers

Which brand is an example of using different brands for different customer types?

<p>Coca-Cola's Classic and Diet versions. (B)</p> Signup and view all the answers

When might a company choose concentrated marketing?

<p>When resources are limited and specific customer needs are identified. (A)</p> Signup and view all the answers

What does the term 'long tailers' refer to in niche marketing?

<p>Customers with varied preferences in niche products. (B)</p> Signup and view all the answers

What is a common characteristic of products aimed at specific segments, such as the new tonic water?

<p>Higher prices due to specialized features. (D)</p> Signup and view all the answers

Flashcards

Measurable Segment

The ability to collect data and track the performance of a segment.

Accessible Segment

The ability to reach a segment with marketing messages and effectively communicate with them.

Effective Program Design

Creating programs that are specifically designed to meet the needs of a particular segment.

Differentiable Segment

The ability to identify and understand the unique characteristics and behaviors of different segments.

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Substantial Segment

A segment must be large enough to be profitable for a business.

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Target Market

A group of customers who share common needs or characteristics.

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Market Targeting

The process of identifying and selecting target markets.

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Product Expressiveness for Value

Products that reflect your personality or lifestyle. Examples include cars, smartphones, clothing, and even your choice of residence.

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Behavioral Segmentation

Grouping customers based on their knowledge, attitudes, usage patterns, or reactions to a product.

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Occasions

A segment of behavioral segmentation that considers the specific situations or events that drive purchase decisions.

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User Status

A segment of behavioral segmentation that distinguishes customers based on their past or current relationship with a specific product.

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Usage Rate

A segment of behavioral segmentation that categorizes customers based on how often they use a product.

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Loyalty Status

A segment of behavioral segmentation that identifies customers based on their loyalty to a brand or product.

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Relationship Marketing

A marketing strategy that focuses on building long-term relationships with customers through personalized experiences and rewarding loyalty.

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Acquisition Marketing

A marketing approach that prioritizes attracting new customers over maintaining existing ones.

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Evaluating Market Segments

Evaluating if a market segment is worth pursuing, considering factors like its size, growth potential, and competitiveness.

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Segment Size and Growth

The size of the market segment and how it's expected to change over time. Large companies prefer big, growing segments, while smaller companies might focus on smaller, manageable ones.

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Segment Structural Attractiveness

Assessing the attractiveness of a segment based on factors like competition, customer power, and supplier power. It's about understanding the forces that influence success within a segment.

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Economies of Scale in Targeting

The ability to achieve economies of scale when targeting a specific segment, considering the cost of reaching individual customers. Large-scale targeting can achieve lower costs per customer.

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Selecting Market Segments

The process of identifying which customer segments are most valuable and worthy of marketing efforts. Companies often choose segments that align with their objectives and resources.

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Concentrated Marketing (Niche Marketing)

Focusing marketing efforts on a specific, narrow segment of the market.

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Market Segment

A group of customers with similar needs, wants, and characteristics that a company targets.

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Marketing Mix

Different product, price, promotion, packaging, communication strategies tailored to specific market segments.

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Product Level Targeting

When a brand offers different products targeted at different consumer groups.

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Brand Level Targeting

When a company uses different brands to target different customer segments.

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Concentrated Marketing Strategy Advantage

Using limited resources effectively by focusing on the needs and wants of a single segment.

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Success of Niche Marketing

Targeting a specific segment in a way that fills a gap in the market, meeting their unique needs.

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Niche Marketing and the Internet

The internet has enabled niche marketing by allowing businesses to reach long-tail consumers.

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Perfect competition

The situation where products from different brands are seen as virtually identical by consumers, with no notable differences in features or value. This leads to intense price competition.

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Product positioning

The act of creating a unique and memorable image for your brand in the minds of consumers. This can be done through branding, positioning, and marketing efforts.

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Identifying sources of differentiation

The process of understanding what makes your brand stand out from the competition. It involves analyzing your strengths, weaknesses, and the needs of your target audience.

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Choosing the right competitive advantages

The choice of specific advantages that will resonate with your target audience and give you a competitive edge. These advantages can be product features, service quality, pricing, or even brand image.

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Overall positioning strategy

The overall strategy to communicate your brand's unique value proposition to your target audience. It involves defining your brand's position in the market, how you want to be perceived, and what message you want to convey.

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Unique selling proposition (USP)

The unique selling proposition (USP) is a single, compelling reason why customers should choose your brand over your competitors. It should be clearly communicated and easily understood.

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Competitive Advantage

A competitive advantage is a unique feature or characteristic that sets a company apart from its competitors, making it more desirable to customers.

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Important Competitive Advantage

A competitive advantage is considered important if it matters to customers in the target market.

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Distinctive Competitive Advantage

A distinctive competitive advantage is something that sets a company apart from its competitors in a way that is clearly noticeable.

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Superior Competitive Advantage

A superior competitive advantage is one that is better than what competitors offer.

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Communicable Competitive Advantage

A communicable competitive advantage is one that can be easily explained and understood by customers.

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Not Easy To Copy Competitive Advantage

A competitive advantage that is not easy to copy is one that is difficult or expensive for competitors to replicate.

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Affordable Competitive Advantage

An affordable competitive advantage is one that does not significantly increase the cost of the product or service.

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Profitable Competitive Advantage

A profitable competitive advantage is one that generates enough revenue to cover costs and generate a profit.

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Study Notes

Strategic Marketing

  • Brands segment markets because serving a whole market is difficult. Customers are diverse in numbers, locations, needs, and buying habits.
  • Segmentation divides the market into groups. Targeting selects specific segments a company will focus on. Differentiation creates a different value proposition from competitors. Positioning places the brand in the consumer's mind.
  • Key segmentation variables include geographic, demographic, psychographic, and behavioral characteristics.
  • Geographic segmentation divides markets by region, city, or neighborhood.
  • Demographic segmentation focuses on age, gender, family size, income, and occupation.
  • Psychographic segmentation considers social class, lifestyle, and personality traits.
  • Behavioral segmentation focuses on product use, occasions, user status, and loyalty.

Market Targeting

  • Target market: Buyers sharing common needs or characteristics served by a company.
  • Segment size and growth are evaluated, along with segment attractiveness (number of competitors, customer power, supplier power, etc).
  • Company objectives and resources affect which segments are targeted.
  • Three main targeting strategies include undifferentiated, differentiated, and concentrated marketing.

Market Positioning

  • Position a product by defining it in consumers' minds relative to competitors.
  • Brands strive for unique value propositions (USP) to stand out.

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UNIT 5 Strategic Marketing PDF

Description

This quiz focuses on the essential concepts of strategic marketing, including market segmentation, targeting, differentiation, and positioning. It explores various segmentation variables such as geographic, demographic, psychographic, and behavioral characteristics. Test your knowledge on how brands effectively identify and serve their target markets.

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