BUSA 330 Chapter 7
Concentrated marketing refers to ___
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
What is a positioning statement?
A summary of the company or brand positioning using this form: To (target segment and needs) our (brand) is (concept) that (point of difference)
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
Carefully consider the degree of competition and ease of entry into the segment.
Which of the following statements regarding concentrated marketing is correct? A. Concentrated marketing is generally not a profitable strategy. B. Concentrated marketing involves higher-than-normal risks. C. Concentrated marketing is not feasible for small companies. D. Concentrated marketing targets a small share of a large market. E. Marketers cannot effectively fine-tune the marketing mix to the needs of a narrow, carefully designed segment.
Concentrated marketing involves higher-than-normal risks
Which of the following statements regarding segmentation is correct? A. Marketers typically use one variable to segment their markets. B. The use of demographics to segment markets has declined in recent years. C. The business market is homogenous and is not segmente D. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets. E. As gender roles have changed, gender is no longer a useful form of segmentation.
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
Which of the following statements regarding demographic segmentation is correct? A. Demographics are rarely used anymore for market segmentation. B. Demographics segmentation uses lifestyle as the primary measure for segmentation. C. Demographic variables are difficult to measure. D. Demographic segmentation divides a market based on age, personality, and benefits sought. E. Consumer needs, wants, and usage rates vary closely with demographic variables.
Consumer needs, wants, and usage rates vary closely with demographic variables
Which of the following statements about segmentation is true? A. Buyers within a market segment have different needs, characteristics, and behaviors. B. Segmentation identifies individual buyers that can be targeted with a market offering. C. Most companies today mass market and do not segment their markets. D. Different segments might require different marketing strategies or mixes. E. Market segmentation is part of a company's value proposition.
Different segments might require different marketing strategies or mixes
what describes market targeting?
Evaluating each market segment's attractiveness and selecting one or more segments to enter
Which of the following descriptions best represents targeting a demographic segment? A. Marketing prepackaged lunches for children B. Marketing athletic clothing for sports enthusiasts C. Promoting a smartphone with longer battery life D. Promoting cranberry sauce for the Thanksgiving holiday E. Rewarding heavy users of a product
Marketing prepackaged lunches for children
Which of the following statements regarding positioning is correct? A. Once a positioning strategy is identified, it is typically very easy to implement. B. Positions must adapt over time to meet changing consumer needs. C. Once established, a strong position is never lost. D. Establishing a position usually takes a very short amount of time. E. Abruptly changing a position is an effective strategy when consumer needs change.
Positions must adapt over time to meet changing consumer needs
What is the overall purpose of differentiation?
To create superior customer value
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important product dimensions
Competitive advantage is _______
an advantage over competitors gained by offering greater customer value, either by having lower prices or by providing more benefits that justify higher prices
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product?
behavioral
_____ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
behavioral
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation
benefits sought
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
channel
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as __________.
concentrated marketing (or niche marketing)
Intermarket segmentation is the segmenting of _________
consumers who have similar needs and buying behaviors even though they are located in different countries
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors.
cultural
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not ____
differentiable
What is another name for segmented marketing?
differentiated marketing
What term refers to distinguishing the market offering to create superior customer value?
differentiation
On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms?
individual marketing
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called ______
intermarket segmentation
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that _______
it can increase costs
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
lifestyle
What is an example of psychographic segmentation?
lifestyle
Psychographic segmentation divides buyers into different segments based on ____
lifestyle and personality
______ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
market segmentation
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called _____
market targeting
Which targeting strategy focuses on common consumer needs, as opposed to different needs?
mass marketing
What are the three broad targeting strategies used by marketers?
mass marketing, differentiated marketing, and micromarketing
Which value proposition is the most difficult to sustain in the long run?
more for less
Geographic segmentation divides a market into _______
nations, states, regions, counties, cities, or neighborhoods
______ involves arranging a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
positioning
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent?
product differentiation
____ is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products
product position
_______ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
psychographic
_____ divides the market into different segments based on lifestyle or personality characteristics
psychographic segmentation
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market __________.
segmentation
Occasion segmentation involves dividing a market into _____
segments according to times when buyers get the idea to buy, actually make their purchase, or use the purchased item
Behavioral segmentation divides a market into ________.
segments based on consumer knowledge, attitudes, uses, or responses to a product
What is the definition of local marketing?
tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores
Individual marketing is ____
tailoring products and marketing programs to the needs and preferences of individual customers
What is micromarketing?
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Market __________ evaluates each market segment's attractiveness and selects one or more segments to serve.
targeting
Value proposition is ________
the full positioning of a brand - the full mix of benefits on which it is positioned
The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as __________.
the same for less
Using a(n) __________ marketing strategy, a firm might decide to ignore market segment differences.
undifferentiated (or mass marketing)
_____ is a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
undifferentiated marketing
The full mix of benefits on which a brand is differentiated and positioned is called a(n) _____
value proposition