BA 303 Chapter 7
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
__________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
Behavioral
Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque." Which base of segmentation is being used in this example?
Benefits sought
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.
Anythinglefthanded.com.uk only sells products designed for left-handed people. Which targeting strategy is it using?
Concentrated marketing
Which of the following statements regarding segmentation is correct?
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
Which of the following statements about segmentation is true?
Different segments might require different marketing strategies or mixes.
A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of differentiation is this?
Image differentiation
On the My M&Ms Web site, users 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 here?
Individual marketing
Which value proposition is difficult to sustain in the long run?
More for less
__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
Psychographic
When marketers target segments such as sports fans, do-it-yourselfers, commuters, and wine enthusiasts, which base of segmentation are they using?
Psychographic segmentation
What is the purpose of differentiation?
To create superior customer value
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important buying dimensions
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
If men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not ________.
differentiable
The Westin Stamford Hotel in Singapore failed when it once advertised itself as the world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following criteria?
important
One important consideration in using a differentiated targeting strategy is that ________.
it can increase costs
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called ________.
market targeting
The step in designing a customer valuedash-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market __________.
segmentation
Market __________ evaluates each market segment's attractiveness and selects one or more segments to serve.
targeting
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
