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Questions and Answers

What is a major difference between Dunkin' Donuts and Starbucks ?

Dunkin' Donuts targets everyday Joes, while Starbucks aims for a more upscale, professional customer.

What is the name of Dunkin' Donuts' long-running ad slogan?

America Runs on Dunkin'.

Which of these is a key difference between the Dunkin' Donuts and Starbucks tribes?

Starbucks customers want to be part of a crowd, Dunkin' Donuts customers want to stand out as individuals. (correct)

Starbucks customers want to sit on couches, Dunkin' Donuts customers want comfortable booths.

Starbucks customers prefer a more upscale environment, Dunkin' Donuts customers prefer a more low-brow environment. (correct)

Starbucks customers want to blend in, Dunkin' Donuts customers want to stand out.

What is the primary way that Dunkin' Donuts is seeking to broaden its appeal to new customer segments?

Dunkin' Donuts has been moving upscale, adding new menu items and making changes to its stores. Signup and view all the answers

What is a key reason that demographic variables are the most popular for dividing customers into segments?

Consumer needs, wants, and usage rates often vary closely with demographic variables. Signup and view all the answers

What did Oscar Mayer do to broaden the appeal of its Lunchables product?

Oscar Mayer introduced Lunchables Loaded and Lunchables Uploaded, which were targeted at teenagers. Signup and view all the answers

What is the nickname given to the very loyal customers of Mountain Dew?

Dew Nation Signup and view all the answers

What is the name of the business information service that classifies U.S. households into one of 71 lifestyle segments?

Mosaic USA Signup and view all the answers

What is the name of the digital campaign used by Coca-Cola to target teenagers?

The Ahh Effect Signup and view all the answers

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

Exclusive Signup and view all the answers

What is the difference between differentiated and concentrated marketing?

Differentiated marketing targets several segments with separate offers, while concentrated marketing focuses on a large share of one or a few segments. Signup and view all the answers

Which of these companies is an example of a business that utilizes micromarketing?

Marriott Renaissance Hotels Signup and view all the answers

What is the name of the program used by Marriott Renaissance Hotels to hyper-localize guest experiences?

Navigator Signup and view all the answers

What is the term used to describe the marketing strategy of tailoring products and marketing programs to the needs and preferences of individual customers?

Individual Marketing Signup and view all the answers

Which of these is a factor that should be considered when choosing a market targeting strategy?

Market variability Signup and view all the answers

What is the biggest concern that marketers have with regard to targeting vulnerable consumers?

Marketers may be promoting potentially harmful products or using deceptive tactics. Signup and view all the answers

What action did McDonald's take to address concerns about its Happy Meals?

McDonald's reduced the calorie count in Happy Meals by 20 percent, added fruit to every meal, and now only promotes Happy Meals with milk, water, and juice. Signup and view all the answers

What is the term for the way a product is defined by consumers on important attributes?

Product Positioning Signup and view all the answers

What is the difference between the Cadillac Escalade and the Land Cruiser, as depicted in the positioning map?

The Cadillac Escalade is positioned on urban luxury, while the Land Cruiser is positioned as a more adventure-oriented, off-road luxury vehicle. Signup and view all the answers

Which of these is an example of a company that practices 'more for the same' positioning?

Target Signup and view all the answers

What is the key difference between 'more for more' and 'more for the same' positioning?

'More for more' positions a product as offering the highest quality and charging a premium price, while 'more for the same' offers similar quality but at a lower price. Signup and view all the answers

Which of these is an example of a company that practices 'Less for Much Less' positioning?

Costco warehouse stores Signup and view all the answers

What is the term for a brand's full positioning - the full mix of benefits on which it is positioned?

Value Proposition Signup and view all the answers

What is the primary difference between 'more for less' positioning and 'more for the same' positioning?

More for less aims to offer higher quality and service at a lower price than competitors, while more for the same offers similar quality at a lower price. Signup and view all the answers

What is the primary function of a positioning statement?

A positioning statement summarizes a company or brand's positioning by outlining its target segment, the need it fulfills, its concept, and its point of difference. Signup and view all the answers

What is the key to building a strong, believable position?

It involves carefully designing the marketing mix and ensuring all elements support the chosen position, from product quality to pricing strategies and advertising tactics. Signup and view all the answers

Why is it often easier to develop a good positioning strategy than to implement it?

Implementing a positioning strategy requires consistent and sustained effort across all aspects of the business, such as product development, pricing, distribution, marketing, and customer service. Signup and view all the answers

Once a company has built a strong position, it can remain stagnant and rely on past successes.

False Signup and view all the answers

Study Notes

Customer Value-Driven Marketing Strategy

Dunkin' Donuts targets a different customer base than Starbucks
Dunkin' values the average consumer ("average Joe") while Starbucks targets a more affluent, sophisticated consumer
Dunkin' customers are more comfortable with a low-brow, everyman approach
Dunkin' Donuts' research showed that its customers are turned off by the high-brow atmosphere of Starbucks, and prefer a more casual setting
Dunkin' Donuts does not try to target the Starbucks customer
Dunkin' focuses on simple fare, affordable prices, and a friendly environment
Dunkin' Donuts ad slogan: "America Runs on Dunkin'"
Dunkin' is now positioned as an all-day, every-day stop for coffee and baked goods

Market Segmentation

Market segmentation is dividing a market into groups with different needs and characteristics
Companies need to reach segments efficiently and effectively with products tailored to their needs
Consumer market segmentation variables include geographic, demographic, psychographic, and behavioral
Geographic segmentation: dividing a market into geographical units (nations, regions, etc.)
Demographic segmentation: dividing by age, life Acycle, gender, income, occupation, etc.
Psychographic segmentation: dividing by lifestyle or personality characteristics
Behavioral segmentation: dividing by consumer knowledge, attitudes, uses, or responses to a product

Market Targeting

Evaluating a market segment's attractiveness depends on size, growth, structural attractiveness, and company objectives/resources
Companies want segments with right size and growth
Factors to consider in structural attractiveness: number of competitors, ease of entry, substitute products, buyer power, supplier power
Companies must consider their objectives and resources when selecting a target segment

Differentiation and Positioning

Differentiation is providing superior customer value
Companies gain competitive advantages by differentiating along product, services, channels, people, or image
Product differentiation: features, performance, style, design
Services differentiation: speedy or convenient service, high-quality customer service
Channel differentiation: channel's coverage, expertise, and performance
People differentiation: hiring and training better people
Identifying a set of differentiating competitive advantages
Choosing the right competitive advantages to promote
Selecting an overall positioning strategy (e.g., more for more, more for the same, less for much less)
Positioning statement: summarizes company/brand positioning, follows a specific format: "To (target segment and need) our (brand) is (concept) that (point of difference)"
A product's position is how consumers perceive it in relation to competing products
Positioning maps: show consumer perceptions of brands on important buying dimensions

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Questions and Answers

What is a major difference between Dunkin' Donuts and Starbucks ?

What is the name of Dunkin' Donuts' long-running ad slogan?

Which of these is a key difference between the Dunkin' Donuts and Starbucks tribes?

What is the primary way that Dunkin' Donuts is seeking to broaden its appeal to new customer segments?

What is a key reason that demographic variables are the most popular for dividing customers into segments?

What did Oscar Mayer do to broaden the appeal of its Lunchables product?

What is the nickname given to the very loyal customers of Mountain Dew?

What is the name of the business information service that classifies U.S. households into one of 71 lifestyle segments?

What is the name of the digital campaign used by Coca-Cola to target teenagers?

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

What is the difference between differentiated and concentrated marketing?

Which of these companies is an example of a business that utilizes micromarketing?

What is the name of the program used by Marriott Renaissance Hotels to hyper-localize guest experiences?

What is the term used to describe the marketing strategy of tailoring products and marketing programs to the needs and preferences of individual customers?

Which of these is a factor that should be considered when choosing a market targeting strategy?

What is the biggest concern that marketers have with regard to targeting vulnerable consumers?

What action did McDonald's take to address concerns about its Happy Meals?

What is the term for the way a product is defined by consumers on important attributes?

What is the difference between the Cadillac Escalade and the Land Cruiser, as depicted in the positioning map?

Which of these is an example of a company that practices 'more for the same' positioning?

What is the key difference between 'more for more' and 'more for the same' positioning?

Which of these is an example of a company that practices 'Less for Much Less' positioning?

What is the term for a brand's full positioning - the full mix of benefits on which it is positioned?

What is the primary difference between 'more for less' positioning and 'more for the same' positioning?

What is the primary function of a positioning statement?

What is the key to building a strong, believable position?

Why is it often easier to develop a good positioning strategy than to implement it?

Once a company has built a strong position, it can remain stagnant and rely on past successes.

Study Notes

Customer Value-Driven Marketing Strategy

Market Segmentation

Market Targeting

Differentiation and Positioning

Studying That Suits You

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