Strategic Marketing U5: Segmentation & Positioning
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Questions and Answers

Which of the following variables is NOT a primary segmentation variable for business markets?

  • Personal characteristics
  • Behavioral patterns (correct)
  • Demographics
  • Operating variables

What type of segmentation focuses on dividing buyers based on their social class, lifestyle, and personality characteristics?

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

Which of the following factors is considered a situational variable in business market segmentation?

  • Company size
  • Buyer seller similarities
  • Technology
  • Urgency of demand (correct)

What characteristic distinguishes a target market?

<p>Buyers who share common needs or characteristics (B)</p> Signup and view all the answers

In behavioral segmentation, which of the following describes 'user status'?

<p>Identification as a first-time user, regular user, or ex-user (C)</p> Signup and view all the answers

Which of the following is NOT a requirement for effective segmentation?

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

Which option describes the 'nature of existing relationships' in business market segmentation?

<p>Current supplier relationships (C)</p> Signup and view all the answers

What is the focus of behavioral segmentation?

<p>Consumer knowledge, attitudes, and usage patterns (C)</p> Signup and view all the answers

What is a key characteristic of undifferentiated marketing?

<p>Offering the same product to the entire market (D)</p> Signup and view all the answers

Why is differentiated marketing advantageous?

<p>It caters to the distinct needs of various segments (A)</p> Signup and view all the answers

What is a major challenge of undifferentiated marketing?

<p>Difficulty in competing with niche-focused firms (D)</p> Signup and view all the answers

What is a common feature of concentrated marketing?

<p>Focusing on specific needs of a single market segment (D)</p> Signup and view all the answers

What distinguishes micromarketing from other types of market targeting?

<p>It tailors offers to individuals and locations (B)</p> Signup and view all the answers

What trade-off is considered when selecting market segments?

<p>Economies of scale versus value creation (C)</p> Signup and view all the answers

What is the primary benefit of differentiated marketing over undifferentiated marketing?

<p>It can address varied consumer preferences more effectively (D)</p> Signup and view all the answers

Which marketing strategy is best suited for a company with limited resources looking to target a niche market?

<p>Concentrated marketing (C)</p> Signup and view all the answers

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

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

Which competitive advantage is characterized by being 'not easy to copy'?

<p>Unique Selling Proposition (B)</p> Signup and view all the answers

What is the primary purpose of a positioning statement?

<p>To clarify the brand's target segment and point of difference (A)</p> Signup and view all the answers

Which of the following should be considered when choosing competitive advantages?

<p>If they are easily replicated (D)</p> Signup and view all the answers

In developing a positioning statement, which element is included to specify the target audience?

<p>Target segment and need (D)</p> Signup and view all the answers

What is individual marketing also known as?

<p>One-To-One Marketing (D)</p> Signup and view all the answers

Which factor primarily influences the choice of a targeting strategy when resources are low?

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

What does the product's life-cycle suggest for undifferentiation?

<p>Undifferentiation during introduction (C)</p> Signup and view all the answers

What defines a product's position in the market?

<p>The way it is defined by consumers on important attributes (B)</p> Signup and view all the answers

What can be a consequence of adopting an undifferentiated strategy in a competitive market?

<p>Risk of being outperformed (C)</p> Signup and view all the answers

What is the primary purpose of market segmentation?

<p>To identify distinct buyer needs (C)</p> Signup and view all the answers

Which of the following is NOT a type of market segmentation mentioned?

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

Geographic segmentation can be defined as dividing the market based on which criterion?

<p>Physical locations (C)</p> Signup and view all the answers

Why is dividing a market into segments considered beneficial?

<p>It leads to more efficient and effective marketing practices. (D)</p> Signup and view all the answers

Which of the following examples is indicative of demographic segmentation?

<p>Marketing products based on age and family size (D)</p> Signup and view all the answers

What characterizes the buying attitudes of consumers in market segmentation?

<p>Their historical purchasing behavior (D)</p> Signup and view all the answers

In which market segmentation method would 'One Stop' store strategies likely align?

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

Which of the following best illustrates the concept of heterogeneity in a market?

<p>Grouping consumers with varied needs and preferences (A)</p> Signup and view all the answers

Flashcards

Market Segmentation

Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors.

Psychographic Segmentation

Dividing buyers into groups based on their social class, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product.

Differentiation

The process of identifying differences between your product or service and those of your competitors to make your offering stand out.

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Target Market

A set of buyers who share common needs or characteristics that a company decides to serve.

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Demographic Segmentation (Business Markets)

Dividing the business market into groups based on factors like industry, company size, and location.

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Positioning

Making your product or service desirable and attractive to a specific target group in the market.

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Competitive Advantage

The unique feature or benefit that sets a product or service apart from its competitors. It should be important, distinctive, superior, communicable, not easily copied, affordable, and profitable.

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Operating Variable Segmentation (Business Markets)

Dividing the business market into groups based on factors like technology used, customer capabilities, and user status.

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Purchasing Approach Segmentation (Business Markets)

Dividing the business market into groups based on factors like purchasing policies, relationships with suppliers, and purchasing criteria.

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Positioning Statement

A concise statement that defines a brand's position in the market, identifying its target audience, need, concept, and point of difference.

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Multiple Competitive Advantages

A strategy to differentiate a product or service by offering multiple competitive advantages, like what El Corte Inglés does.

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Personal Characteristic Segmentation (Business Markets)

Dividing the business market into groups based on factors like loyalty, attitude towards risk, and buyer-seller similarities.

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Individual Marketing

A marketing strategy focusing on individual customers, tailoring products and messages to their unique needs and preferences. It aims to build strong, lasting relationships with each customer.

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Concentrated Targeting

A marketing strategy where the company focuses on a specific segment of the market and designs its products and marketing efforts to appeal only to that segment.

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Undifferentiated Targeting

A marketing strategy where the company creates a single product and marketing message for the entire market, assuming all customers have similar needs and preferences.

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Product Position

The way consumers perceive and categorize a product based on its key attributes, such as price, quality, or design. It determines the product's place relative to competitors in the customer's mind.

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Geographic Segmentation

The division of a market based on geographic units such as nations, regions, cities, or neighborhoods.

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Demographic Segmentation

The division of a market based on demographic characteristics like age, gender, family size, income, occupation, education, religion, race, generation, and nationality.

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Market Targeting

A marketing strategy that focuses on serving specific parts of the market that a company can serve best and most profitably.

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Value Proposition

The unique value proposition, features, or benefits that a product or brand offers to its target market, making it stand out from its competitors.

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Market Research

The process of understanding and analyzing the needs, preferences, and buying behavior of a specific segment of the market.

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Evaluating market segments

Evaluating a market segment involves assessing its size and growth potential, its structural attractiveness (competition, barriers to entry, etc.), and whether it aligns with the company's goals and resources.

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Differentiated marketing

Differentiated marketing involves creating distinct marketing strategies for different segments with varying needs and wants.

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Micromarketing

Micromarketing involves tailoring products and marketing messages to the specific needs and preferences of individual customers or very small groups.

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Economies of scale

Economies of scale refer to the cost advantages a company enjoys as it produces more of a product or service.

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Value Creation

Value creation refers to the process of providing value and satisfaction to customers, exceeding their expectations and generating positive experiences.

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Study Notes

Strategic Marketing - U5 - Segmentation and Positioning

  • Introduction:

    • Difficult to serve an entire market.
    • Buyers may be numerous, scattered, and varied in their needs/buying practices.
    • Companies must select segments they can best serve profitably.

  • Market Segmentation (5.1):

    • Dividing a market into smaller segments with distinct needs, characteristics or behaviors.
    • Requires specific marketing strategies/mixes.
    • Consumer differences include: wants, resources, locations, buying attitudes, buying practices.
    • Market segmentation helps divide large, heterogeneous markets more effectively and efficiently.

  • Consumer Markets (5.1):

    • Geographic: divides into nations, regions, cities, neighborhoods.
      • Examples: Tesco Metro (city centers, small towns), Tesco Express (neighborhood convenience stores), One Stop (small stores).
    • Demographic: divides by age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, nationality.
      • Examples: Oral B (age/life-cycle stage), L'Oreal (gender), American Express (income).
    • Psychographic: divides by social class, lifestyle, personality characteristics.
    • Behavioral: divides by knowledge, attitudes, uses, or responses to a product.
      • Examples: Occasions (Samsonite), User status (non-users, ex-users), Usage rate (light, medium, heavy), Loyalty status (high, medium, low).

  • Business Markets (5.1):

    • Demographics: include industry, company size, location.
    • Operating variables: include technology used, user/non-user status, customer capabilities.
    • Purchasing approaches: include nature of existing relationships, general purchase policies, purchasing criteria.
    • Personal characteristics: include loyalty to suppliers, buyer-seller similarities, attitudes toward risk, situational factors (urgency of demand, size of order).

Market Targeting (5.2)

  • Target Market: a set of buyers who share common needs/characteristics the company chooses to serve.

  • Evaluating Market Segments:

    • Consider segment size and growth, structural attractiveness, and company objectives/resources.

  • Selecting Market Segments

    • Undifferentiated: targets the whole market with one offer (economies of scale).
    • Differentiated: targets different segments with different products (greater financial risk).
    • Concentrated: targets one or more small segments with tailored products (best suited for companies with limited resources).
    • Micromarketing: targets individuals or local groups with tailored products (e.g., local marketing, individual marketing).

Differentiation and Positioning (5.3)

  • Product Positioning: the way the product is defined by consumers based on important attributes and the place it occupies in consumers' minds relative to competitors.

    • "Products are created in the factory. Brands are created in the mind."

  • Positioning Map: a graphical representation of consumer perceptions of competing products, helpful in market research.

  • Differentiation: identifying sources of difference: product, services, channels, people, image.

  • Competitive Advantages: choosing the right advantageous differences.

    • Key elements are importance, distinctiveness, superiority, communicability, and cost, profitability and sustainability.

  • Positioning Strategy: Selecting overall strategy (e.g., price/benefits).

  • Developing a Positioning Statement: A short, clear statement of the brand's position in the market (Example given of Blackberry).

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Strategic Marketing Segmentation and Positioning PDF

Description

This quiz focuses on Unit 5 of Strategic Marketing, discussing the concepts of market segmentation and positioning. It covers the importance of identifying distinct market segments based on geographical and demographic factors. Test your understanding of how companies can effectively serve diverse customer needs to maximize profitability.

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