Chapter 6 M
Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents a(n) _______ strategy. A. concentrated marketing B. undifferentiated marketing C. mass marketing D. differentiated marketing E. micromarketing
A
concentrated marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches
positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
______________________ is part of a company's decision on how it will create market offerings to deliver superior customer value. A. Market targeting B. Mass marketing C. Differentiation D. Undifferentiated marketing E. Market segmentation
D
Behavorial Segmentation
Dividing a market based on some observable actions or attributes by prospective customers, such as where they buy, what benefits they seek, how frequently they buy and why they buy.
Like consumer markets, business markets are segmented. Which of the following describes the variables that marketers use to segment business markets? A. Operating characteristics, purchasing approaches, situational factors, and pricing B. Operating characteristics, purchasing approaches, situational factors, and geographic variables C. Operating characteristics, purchasing approaches, situational factors, and demographics Your answer is not correct. D. Operating characteristics, purchasing approaches, situational factors, usage rate, and demographics E. Business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics
E
Segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer segments, ________________ to their specific needs. A. target, and tailor market offerings and messages B. reach them more efficiently, and differentiate products and services C. reach them more efficiently, and position products and services D. position, and tailor market offerings and messages E. reach them more efficiently, and tailor market offerings and messages
E
The full positioning of a brand is called the brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned. A. overall brand strategy B. differentiation statement C. positioning statement D. benefit proposition E. value proposition
E
undifferentiated marketing
a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
differentiated marketing
a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Differentiation
actually differentiating the market offering to create superior customer value
Gender segmentation
dividing a market into different segments based on gender
psychographic segmentation
dividing a market into different segments based on social class, lifestyle, or personality characteristics
occasion segmentation
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
value proposition
the full positioning of a brand - the full mix of benefits on which it is positioned
Market Segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
benefit segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
product position
the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
In addition to segmentation and targeting, there are two other major steps in designing a customer value-driven market strategy: ________ seeks to create superior customer value in the mind of the consumer, and ________ seeks to firmly place the market offering in the minds of target customers. A. Differentiation; positioning B. Positioning; segmentation C. Positioning; differentiation D. Differentiation; segmentation E. Positioning; target marketing
A
Major variables used to segment consumer markets include which of the following? A. Geographic, demographic, psychographic, and behavioral B. Geographic, demographic, psychographic, and psychological C. Income, age, geographic, and lifestyle D. Income, gender, age, and ethnicity E. Ethnicity, geographic, gender, and income
A
Although business marketers use many of the same variables to segment their markets, they also use some additional variables, such as ________, ____________. _________, and personal characteristics. A. customer operating characteristics, purchasing approaches, environmental factors B. customer operating characteristics, purchasing approaches, situational factors C. customer operating characteristics, vendor selection processes, situational factors D. customer operating characteristics, purchasing approaches, management factors E. customer operating characteristics, sales and proposal processes, situational factors
B
Companies need to consider many factors when choosing a market-targeting strategy. However, which targeting strategy is best depends on company resources, product variability, product life-cycle stage, as well as ________________________. A. distribution characteristics and competitive marketing strategies B. market variability and competitive marketing strategies C. sustainability strategies and market variability D. product development strategies and competitive marketing strategies E. market variability and sales strategies
B
Once market segments have been selected, the company then must decide on _____________________________. A. target market strategies B. differentiation and positioning strategy C. positioning map D. unique value proposition E. mission and vision
B
Once segments have been identified, market ________ evaluates each segment's attractiveness and selects one or more to serve. A. segmentation B. targeting C. micromarketing D. positioning E. differentiation
B
In which targeting strategy does a firm go after a large share of one or a few smaller segments? A. Differentiated marketing B. Undifferentiated marketing C. Concentrated marketing D. Mass marketing E. Micromarketing
C
Once a company has decided which segments to enter, it must decide on its ________ strategy. A. advertising and sales promotion B. sales and marketing C. positioning and differentiation D. channel and distribution E. financial and revenue
C
One important consideration in using a differentiated targeting strategy is that _______. A. the demand for customized products is decreasing B. serving one or a few smaller segments can limit sales C. it can increase costs D. it is easier for the company because it only needs to manage one market offering E. focusing on what is common in consumers can potentially appeal to the largest number of buyers
C
The differentiation and positioning task consists of three steps: identifying ________ that create competitive advantage, choosing ________ on which to build a position, and selecting an overall positioning strategy. A. products or services; features and benefits B. a set of possible differentiations; product features and benefits C. a set of possible differentiations; advantages D. positioning statements; advantages E. a set of products; advantages
C
positioning statement
a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)
local marketing
tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores
individual marketing
tailoring products and marketing programs to the needs and preferences of individual customers
To determine which market segments to target and serve, the company first evaluates each segment's ________. A. size and growth characteristics and structural attractiveness B. size and growth characteristics C. size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources D. size and growth characteristics and compatibility with company objectives and resources E. compatibility with company objectives and resources
C
To target the best market segments, the company first evaluates various factors related to market attractiveness. Of the following, which is NOT one of those factors? A. Evaluation of each segment's size characteristics B. Evaluation of each segment's structural attractiveness C. Compatibility with company mission and vision D. Evaluation of each segment's growth characteristics E. Compatibility with company objectives and resources.
C
What are perceptual positioning maps used for? A. To compare a company's profitability with the profitability of competitors B. To find where to best position a product on a store shelf C. To show consumer perceptions of different brands on important buying dimensions D. To show consumer perceptions of an individual brand on important buying dimensions E. To implement a particular positioning strategy
C
What is market segmentation? A. Evaluating each market segment's attractiveness and selecting one or more market segments to enter B. Marketing to a mass market of homogenous buyers C. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes D. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers E. Differentiating the firm's market offering to create superior customer value
C
Market segmentation is the act of dividing a market into distinct groups of buyers who have ________ and who might require separate marketing strategies or mixes. A. needs, wants, and desires B. primarily different behaviors C. different needs, characteristics, or buying power D. different needs, characteristics, or behaviors E. different needs, characteristics, traits, and behaviors
D
The ________________________ is a brand's full positioning or the full mix of benefits on which the brand is positioned. A. positioning map B. brand's personality and voice C. target marketing strategy D. value proposition E. differentiation strategy
D
What are the four major steps in designing a customer value-driven marketing strategy, in the correct sequence? A. Market segmentation, market targeting, positioning, and differentiation B. Positioning, market segmentation, market targeting, and differentiation C. Market segmentation, differentiation, market targeting, and positioning D. Market targeting, market segmentation, differentiation, and positioning E. Market segmentation, market targeting, differentiation, and positioning
E
When effective programs can be designed for attracting and serving market segments, these segments are ________. A. measurable B. substantial C. differentiable D. accessible E. actionable
E
Age and life-cycle segmentation
dividing a market into different age and life-cycle groups