Podcast
Questions and Answers
What is a key requirement for a market segment to be viable?
What is a key requirement for a market segment to be viable?
- It must be difficult to reach through marketing communications.
- It must be homogeneous with other market segments.
- It must be similar to the population as a whole.
- It must be large enough to be financially viable. (correct)
What is the purpose of creating clusters in usage segmentation?
What is the purpose of creating clusters in usage segmentation?
- To measure growth and migration.
- To create marketing programs for each cluster.
- To identify the largest market segment.
- To target specific customer groups. (correct)
Which of the following is a method of segmenting B-to-B markets?
Which of the following is a method of segmenting B-to-B markets?
- Number of employees.
- Customer value.
- Geographic location. (correct)
- Age of the business.
What is product positioning primarily based on?
What is product positioning primarily based on?
What is the goal of creating marketing programs for each cluster in usage segmentation?
What is the goal of creating marketing programs for each cluster in usage segmentation?
What is the primary focus of usage segmentation?
What is the primary focus of usage segmentation?
What is the primary focus of product positioning approaches?
What is the primary focus of product positioning approaches?
Which of the following is NOT a characteristic of product positioning?
Which of the following is NOT a characteristic of product positioning?
What is the primary goal of communication objectives?
What is the primary goal of communication objectives?
Which of the following communication objectives is focused on encouraging repeat purchases?
Which of the following communication objectives is focused on encouraging repeat purchases?
What is the primary advantage of the objective and task method of determining marketing communication budgets?
What is the primary advantage of the objective and task method of determining marketing communication budgets?
What is a limitation of the percentage of sales method of determining marketing communication budgets?
What is a limitation of the percentage of sales method of determining marketing communication budgets?
Which of the following types of budgets is often used by companies that do not view marketing as important?
Which of the following types of budgets is often used by companies that do not view marketing as important?
What percentage of firms use the objective and task method of determining marketing communication budgets?
What percentage of firms use the objective and task method of determining marketing communication budgets?
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Study Notes
Product Positioning Approaches
- Product attributes, competitors, use or application, price/quality, product user, product class, and cultural symbol are the approaches to product positioning.
Elements of Positioning
- Positioning is never completely fixed and applies to business-to-business markets as well.
- International positioning is important and a critical component of image and brand management.
Communication Objectives
- Develop brand awareness, increase category demand, change customer beliefs and attitudes, enhance purchase actions, encourage repeat purchases, build customer traffic, enhance firm image, increase market share, and increase sales are the communication objectives.
Determining Marketing Communication Budgets
- Methods for determining marketing communication budgets include percentage of sales, meet-the-competition, "what we can afford", objective and task, payout planning, and quantitative models.
Types of Budgets
- Percentage of sales budget is based on current or next year's sales, simple, but tends to work in the opposite direction and does not meet special needs.
- Meet-the-competition budget seeks to prevent market share loss and is used in highly competitive markets, but may not spend dollars efficiently.
- What-we-can-afford budget is set after all other items are budgeted and does not view marketing as important.
- Objective-and-task budget is determined by objectives and is the best method of budgeting, used by 50% of firms.
Market Segmentation
- A viable market segment must be homogeneous, distinct from other segments and the population, financially viable, and reachable through media or marketing communications.
Usage Segmentation
- Usage segmentation is based on usage or purchase history, creating clusters, targeting specific clusters, creating marketing programs, and measuring growth and migration.
Segmenting B-to-B Markets
- Methods for segmenting business-to-business markets include industry (NAICS/SIC codes), size of business, geographic location, product usage, and customer value.
Product Positioning
- Product positioning is the perception created in the consumer's mind about a company and its products relative to the competition, influenced by product quality, price, distribution, image, and marketing communications.
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