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