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Questions and Answers
What is the primary focus of individual marketing?
What is the primary focus of individual marketing?
Which factor most influences the choice of a targeting strategy when company resources are limited?
Which factor most influences the choice of a targeting strategy when company resources are limited?
What characterizes the product's position in consumers' minds?
What characterizes the product's position in consumers' minds?
In which stage of a product's life cycle is undifferentiation commonly employed?
In which stage of a product's life cycle is undifferentiation commonly employed?
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What should be considered if competitors are using a differentiated strategy?
What should be considered if competitors are using a differentiated strategy?
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What is the first step in the process of differentiation and positioning?
What is the first step in the process of differentiation and positioning?
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Which of the following is NOT a source of differentiation?
Which of the following is NOT a source of differentiation?
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What characteristic should competitive advantages have according to the provided framework?
What characteristic should competitive advantages have according to the provided framework?
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What is a key component of a positioning statement?
What is a key component of a positioning statement?
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Which of the following is NOT listed as important for choosing competitive advantages?
Which of the following is NOT listed as important for choosing competitive advantages?
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What approach is primarily used when dividing buyers based on their knowledge, attitudes, and usage of a product?
What approach is primarily used when dividing buyers based on their knowledge, attitudes, and usage of a product?
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Which of the following is NOT a characteristic considered in psychographic segmentation?
Which of the following is NOT a characteristic considered in psychographic segmentation?
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What is a primary segmentation variable for business markets that relates to the nature of existing relationships?
What is a primary segmentation variable for business markets that relates to the nature of existing relationships?
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Which segmentation type focuses on dividing buyers based on industry and company size?
Which segmentation type focuses on dividing buyers based on industry and company size?
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Which characteristic is essential for effective market segmentation?
Which characteristic is essential for effective market segmentation?
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When identifying a target market, which of the following is primarily focused on shared characteristics among buyers?
When identifying a target market, which of the following is primarily focused on shared characteristics among buyers?
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Which usage rate classification includes users who occasionally utilize a product?
Which usage rate classification includes users who occasionally utilize a product?
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What type of segmentation uses social class and lifestyle to categorize buyers?
What type of segmentation uses social class and lifestyle to categorize buyers?
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What is the primary purpose of market segmentation?
What is the primary purpose of market segmentation?
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Which of the following is NOT a reason for market segmentation?
Which of the following is NOT a reason for market segmentation?
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Which variable is commonly used for geographic market segmentation?
Which variable is commonly used for geographic market segmentation?
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Which of the following is an example of demographic segmentation?
Which of the following is an example of demographic segmentation?
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What does behavioural segmentation focus on?
What does behavioural segmentation focus on?
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Which type of segmentation uses factors such as family size and occupation?
Which type of segmentation uses factors such as family size and occupation?
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Which of the following is a characteristic of effective market segmentation?
Which of the following is a characteristic of effective market segmentation?
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Which is NOT a typical variable for segmenting consumer markets?
Which is NOT a typical variable for segmenting consumer markets?
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What is the primary focus of undifferentiated marketing?
What is the primary focus of undifferentiated marketing?
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Which of the following is a characteristic of differentiated marketing?
Which of the following is a characteristic of differentiated marketing?
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What is a potential disadvantage of undifferentiated marketing?
What is a potential disadvantage of undifferentiated marketing?
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Concentrated marketing is most useful when a company's resources are:
Concentrated marketing is most useful when a company's resources are:
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Micromarketing is primarily aimed at:
Micromarketing is primarily aimed at:
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One reason companies do not view every buyer as a separate target is:
One reason companies do not view every buyer as a separate target is:
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Which marketing strategy focuses on the common needs of all consumers?
Which marketing strategy focuses on the common needs of all consumers?
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Which marketing approach seeks to address distinct needs and wants across several segments?
Which marketing approach seeks to address distinct needs and wants across several segments?
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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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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.
