Strategic Marketing - Unit 5 Quiz
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Questions and Answers

What is the primary focus of individual marketing?

  • Creating a unique strategy for each customer (correct)
  • Mass marketing to a wide audience
  • Developing uniform products for all consumers
  • Segmenting the market into several groups

Which factor most influences the choice of a targeting strategy when company resources are limited?

  • Uniform product variability
  • Differentiation and micromarketing
  • Concentrated marketing strategy (correct)
  • Market variability among consumers

What characterizes the product's position in consumers' minds?

  • The way the product is perceived relative to competitors (correct)
  • The production process of the product
  • The company's market share
  • The uniformity of the product

In which stage of a product's life cycle is undifferentiation commonly employed?

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

What should be considered if competitors are using a differentiated strategy?

<p>Using differentiation can help avoid being left behind (B)</p> Signup and view all the answers

What is the first step in the process of differentiation and positioning?

<p>Identify sources of differentiation (A)</p> Signup and view all the answers

Which of the following is NOT a source of differentiation?

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

What characteristic should competitive advantages have according to the provided framework?

<p>Not easy to copy (D)</p> Signup and view all the answers

What is a key component of a positioning statement?

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

Which of the following is NOT listed as important for choosing competitive advantages?

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

What approach is primarily used when dividing buyers based on their knowledge, attitudes, and usage of a product?

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

Which of the following is NOT a characteristic considered in psychographic segmentation?

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

What is a primary segmentation variable for business markets that relates to the nature of existing relationships?

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

Which segmentation type focuses on dividing buyers based on industry and company size?

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

Which characteristic is essential for effective market segmentation?

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

When identifying a target market, which of the following is primarily focused on shared characteristics among buyers?

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

Which usage rate classification includes users who occasionally utilize a product?

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

What type of segmentation uses social class and lifestyle to categorize buyers?

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

What is the primary purpose of market segmentation?

<p>To divide a market into smaller segments with distinct needs (D)</p> Signup and view all the answers

Which of the following is NOT a reason for market segmentation?

<p>Consumers have similar buying practices (D)</p> Signup and view all the answers

Which variable is commonly used for geographic market segmentation?

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

Which of the following is an example of demographic segmentation?

<p>Classifying consumers by age and income (D)</p> Signup and view all the answers

What does behavioural segmentation focus on?

<p>Consumer purchasing habits and product usage (C)</p> Signup and view all the answers

Which type of segmentation uses factors such as family size and occupation?

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

Which of the following is a characteristic of effective market segmentation?

<p>Segments are homogeneous within and heterogeneous between (B)</p> Signup and view all the answers

Which is NOT a typical variable for segmenting consumer markets?

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

What is the primary focus of undifferentiated marketing?

<p>Targeting the entire market with a common offer (C)</p> Signup and view all the answers

Which of the following is a characteristic of differentiated marketing?

<p>Targeting multiple segments with various marketing strategies (C)</p> Signup and view all the answers

What is a potential disadvantage of undifferentiated marketing?

<p>Difficulty in competing with specialized firms (B)</p> Signup and view all the answers

Concentrated marketing is most useful when a company's resources are:

<p>Limited and focused on one niche segment (C)</p> Signup and view all the answers

Micromarketing is primarily aimed at:

<p>Tailoring offers to meet the needs of specific individuals (D)</p> Signup and view all the answers

One reason companies do not view every buyer as a separate target is:

<p>To achieve economies of scale (A)</p> Signup and view all the answers

Which marketing strategy focuses on the common needs of all consumers?

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

Which marketing approach seeks to address distinct needs and wants across several segments?

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

Flashcards

Market Segmentation

Dividing a large market into smaller groups with unique needs, characteristics, or behavior that require distinct marketing strategies.

Geographic Segmentation

The process of classifying customers into groups based on their geographic location, like countries, regions, or cities.

Demographic Segmentation

The process of classifying customers into groups based on their demographic data such as age, gender, income, or occupation.

Why is market segmentation important?

Buyers may be too numerous, scattered, or varied in their needs and buying habits, making it difficult to serve the entire market.

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Market Targeting

Companies identify and focus on the specific segments within a market that they can serve best and most profitably.

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Positioning

The process of creating distinct and memorable positions for a product or brand in the minds of customers.

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Differentiation

The process of creating a unique selling proposition (USP) that differentiates a brand from its competitors.

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Positioning

The process of creating a memorable and distinct image or position of a brand in the mind of the customer.

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Psychographic Segmentation

Dividing a market into groups based on lifestyle, social class, and personality characteristics of the buyers.

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Behavioral Segmentation

Dividing a market into groups based on how buyers use products or their knowledge and attitudes.

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Demographic Segmentation (Business Markets)

Segmentation based on characteristics like industry, company size, or location.

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Personal Characteristics Segmentation (Business Markets)

Segmentation based on factors related to the customer's internal decision process, like their attitudes towards risk or their purchase preferences.

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Operating Variables Segmentation (Business Markets)

Segmentation based on factors like technology, user status, or the customer's capabilities.

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Situational Factors Segmentation (Business Markets)

Segmentation based on the situation of the purchase, like the urgency of the order or its size.

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Substantial Segment (Effective Segmentation)

Dividing the market into segments that are large enough to be profitable.

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Accessible Segment (Effective Segmentation)

Dividing the market into segments that can be reached through marketing efforts.

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Segment size and growth

Evaluating how big and fast-growing each segment is. Larger and faster-growing segments are usually more attractive.

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Segment structural attractiveness

Analyzing the competitive landscape in each segment. Look for factors like the number of competitors, the availability of substitutes, and the bargaining power of buyers and suppliers. Strong competition can make a segment less attractive.

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Company objectives and resources

Company resources and goals should align with the chosen segments. Can the company effectively serve the chosen segments with their current resources, or do they need to invest?

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Undifferentiated Marketing

Marketing to the entire market with one offer. This approach is common for products with universal appeal.

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Differentiated Marketing

Creating separate marketing mixes for different segments. Each segment gets a tailored message and product.

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Concentrated Marketing

Focusing on a single, specific segment. This strategy is ideal when resources are limited.

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Micromarketing

Creating highly personalized offers for individuals or locations. This is the most tailored approach.

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Trade-off between economies of scale and value creation

The trade-off between reaching more people with a single message (economies of scale) and creating more value by customizing products for different needs.

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Individual Marketing

One-to-one marketing aims to tailor marketing efforts to individual customers, creating highly personalized experiences and maximizing individual value.

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Product Position

The product's position reflects how consumers perceive it based on key attributes, compared to competitors. It's the mental image of the product in customers' minds.

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Company Resources and Targeting

A company's resources greatly impact targeting strategy. Limited resources favor concentrated targeting focusing on specific, niche segments.

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Choosing Competitive Advantages

Selecting the right competitive advantages that are important, distinctive, superior, communicable, difficult to copy, affordable, and profitable.

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Positioning Statement

Creating a clear and concise statement that defines your brand's position in the market, targeting a specific audience, highlighting key benefits, and emphasizing how your brand stands out.

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Positioning Map

A positioning map visually represents different brands or products based on their key characteristics and attributes, allowing for competitive analysis and brand positioning strategy.

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Unique Selling Proposition (USP)

A unique selling proposition (USP) is a specific and compelling benefit that sets your brand apart from the competition, often used to justify a price premium.

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Study Notes

Strategic Marketing - Unit 5

  • Covers market segmentation, targeting, and positioning.

Introduction

  • Difficult to serve entire market; buyers may be too numerous, scattered, and varied in needs.
  • Companies must identify profitable segments to serve best.

Market Segmentation (5.1)

  • Dividing a market into smaller segments with similar needs, characteristics.
  • Consumer segments differ in wants, resources, location, buying attitudes, and practices.
  • Market segmentation allows businesses to reach target audiences with tailored strategies.

Market Segmentation: Consumer Markets (5.1)

  • Variables for segmenting consumer markets include:
    • Geographic (nations, regions, cities, neighbourhoods)
    • Demographic (age, gender, family size, income, occupation, education, race, generation, nationality)
    • Psychographic (social class, lifestyle, personality characteristics)
    • Behavioural (knowledge, attitudes, uses, or responses to a product; occasions, user status, usage rate, loyalty status)

Market Segmentation: Business Markets (5.1)

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

Requirements for Effective Segmentation (5.1)

  • Measurable
  • Actionable
  • Differentiable
  • Accessible
  • Substantial

Market Targeting (5.2)

  • Evaluating market segments (size, growth, structural attractiveness, company objectives, resources)
  • Choosing which segments to serve (undifferentiated, differentiated, concentrated, micromarketing)

Market Targeting Strategies (5.2)

  • Undifferentiated (Mass) Marketing: Focuses on common needs of all consumers.
  • Differentiated (Segmented) Marketing: Targets different needs of separate segments.
  • Concentrated Marketing (Niche Marketing): Concentrates on serving one or a few segments.
  • Micromarketing: An extreme form of targeting, tailoring to specific individual needs.

Differentiation and Positioning (5.3)

  • Product Position: How consumers perceive the product relative to competing offerings..
  • Positioning Statement: Summarizing the product position, targeting the specific consumer need.
    • To (target segment and need), our (brand) is (concept) that (point of difference).

Differentiation and Positioning Steps (5.3)

  • Identifying sources of differentiation: Product, services, channels, people, image
  • Choosing competitive advantages: Attributes important to customers and difficult for competitors to imitate
  • Selecting overall positioning strategy: Choosing how to present a product in terms of benefits and price.

Choosing the Right Competitive Advantage (5.3)

  • Unique selling proposition
  • Important
  • Distinctive
  • Superior
  • Communicable
  • Not easily copied
  • Affordable
  • Profitable

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Strategic Marketing Segmentation and Positioning PDF

Description

Test your knowledge on market segmentation, targeting, and positioning in this quiz on Strategic Marketing Unit 5. Explore the various criteria for dividing markets and learn how to effectively reach your target audience through tailored strategies.

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