Marketing 330

Positioning strategy

1. Analyse - Analyse competitors' positions in marketplace 2. Competitive advantage Offer good/service with competitive advantage - what makes it better? Position by things such as country of origin, price vs quality, price 3. Marketing mix Finalise marketing mix - must deliver benefits and value expected and done better than competitor. All elements of mix must satisfy consumer needs and provide value 4. Evaluate Evaluate reponses so can modify strategy. Must monitor response --> repositioning

Target Marketing Proces Steps

1. Market Segmentation - dividing a market into a distinct group of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes. 2. Market Targeting - process of evaluating each market segment's attractiveness and selecting one or more segments to enter. 3. Marketing Positioning - involves arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers, which is accomplished through formulating competitive positioning for a product and a detailed marketing mix.

The 80/20 rule is a theory that suggests that

20 percent of heavy users account for 80 percent of the total demand

If a firm can identify its loyal users, it is in a better position to create an effective marketing strategy to reach those consumers who contribute most to the firm's success. This idea is part of which aspect of behavioral segmentation?

80/20 Rule Many firms subscribe to the 80/20 rule, which suggests that 20 percent of very loyal customers account for 80 percent of their total demand. If a firm can identify its loyal users, it is in a better position to create an effective marketing strategy to reach those consumers who contribute most to the firm's success.

Select the statement that accurately defines a consumer want.

A consumer want is something a consumer would like to have but does not need for survival.

What is the primary goal of the second step of the market positioning process?

A firm identifies the positioning strategies that will best highlight its competitive advantage. Great marketers understand competitive advantage and why consumers buy their firms' goods and services. During the second step of the market positioning process, a firm can employ a number of positioning strategies to highlight its competitive advantage.

The way in which individuals and organizations make decisions to spend their available resources, such as time or money, is referred to as

Consumer behavior

Ocean Bound has several retail shops within a 15-minute drive from the most popular beach destinations. However, there are many people that live within walking distance of the beach as well as many looking to buy beach-related trinkets or to replace an emptied bottle of sunscreen without having to leave the beach. Ocean Bound is looking to apply a geographic segmentation strategy based on customer convenience in this case. What specific strategy would you recommend?

set up kiosks near the beach restroom and shower areas A geographic segmentation strategy based on customer convenience is all about ease of access and availability at the time of need; setting up kiosks directly on the beach where foot traffic is high, such as the restroom and shower areas, is the most effective implementation of this geographic segmentation variable.

Consider a buying situation in which a business is low on stock of a specific item. It places an order with its regular supplier to replenish this stock. It requests the same product as previously purchased and agrees to buy it at the same price. This describes which type of buying situation?

straight rebuy A straight rebuy occurs when a business customer signals its satisfaction by agreeing to purchase the same product at the same price as previously purchased. In this scenario, the business is satisfied with the quality and price of the products and sees no need for negotiations. Hence, the business is involved in a straight rebuy.

Market Penetration

strategies emphasize increased sales of existing goods and services to existing customers. This type of growth strategy often involves encouraging current customers to buy more each time they patronize a store or to buy from the store on a more frequent basis. Ex. growth strategy used when McDonald's offers "value meals" to customers in which the customer can upsize their order?

Market development

strategies focus on selling existing goods and services to new customers. The targeted new customers could be of a different gender, age group, or country.

Whereas a consumer need is something one has to have to ________, a consumer want is something one would like to ________.

survive, have

When a company evaluates each market segment to determine which segment or segments present the most attractive opportunity to maximize sales, it is engaged in

targeting

When a company is deciding which group of market segments they will focus their efforts on to maximize sales, they are engaging in

targeting

Resellers

the individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations include retailers and wholesalers that buy finished goods and resell them for a profit.

niche marketing.

the process of finding small but profitable market segments and designing or finding products for them A targeting strategy that involves pursuing a large share of a small market segment is referred to as

When marketers segment based on psychographics, the market is divided into groups according to

the reason why the consumer made the purchase.

Which of the following is an accurate definition of the marketing strategy?

the set of marketing actions taken to accomplish marketing objectives A marketing strategy is the set of actions taken to accomplish organizational objectives. A successful marketing strategy can lead to higher profits, stronger brands, larger market share, and other desired outcomes for stakeholders of the firm.

A market segment is measurable if

the size and purchasing power of the segment can be clearly identified. A segment is measurable if the size and purchasing power of the segment is clearly identified. Many successful marketers believe that if you cannot measure something you cannot manage it.

situational influences that affect the consumer decision-making process

time, social factors, global factors, personal factors

Which of the following represents the three basic strategies for targeting markets?

undifferentiated targeting, differentiated targeting, and niche marketing

Which of the following is a behavioral segmentation variable?

usage rate

The five key components of the marketing plan are

Executive summary, situation analysis, marketing strategy, financials, and controls

When customers look beyond their personal knowledge and experience to help them in buying something, they are engaging in:

External information search consumers do not have enough personal knowledge and experience to make a buying decision so they seek information beyond what they know.

Molly recently purchased a locket from Memories-and-More. Molly did extensive research before purchasing this specific locket and found that it was fairly common, valuable, and easily replaceable. It can be said that Molly's locket has a sustainable competitive advantage.

False A product that has a sustainable competitive advantage exhibits characteristic that are rare, valuable, and hard to imitate.

a differentiated marketing strategy

Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy?

This buying center member can offer opinions about a product or set buying specifications, but not make the actual purchase.

Influencer

The iPad Pro is Apple's most advanced iPad and contains the most advanced technology. It is designed to work with the new Apple Pencil, which can magnetically attach to and pair with the iPad Pro for charging. Apple is appealing to a segment of the market that is comfortable with technology and already owns some sort of digital tablet. If Apple were to utilize the VALS framework to segment its market for the iPad Pro, which psychographic segment should it target?

Innovators Innovators are characterized as sophisticated, in charge, and curious. They tend to have the latest technology and are digitally savvy.

Pet Plus Value Inc. has developed a new objective that states, "To increase sales of dog food." What is wrong with this objective?

It lacks measuribility The objective is very vague and it is not quantifiable. If the sales need to be increased then it is imperative to have a fixed target in mind that should be achieved. This measurable target is missing in the above objective.

Variations of the consumer buying process may be summarized according to four key factors: coverage of decision-making stages, frequency of purchase, experience in purchasing, and

Level of involvement

The marketing strategy that emphasizes selling more of existing goods and services to existing customers is called

Market Penetration

Read the following statements to select the choice that is not true of market segmentation.

Market segmentation identifies which products will be profitable and which ones are not worth pursuing. Market segmentation is the process of dividing a larger market into smaller groups based on meaningfully shared characteristics. This process has many benefits for a firm, but it cannot determine which products will be profitable or which ones should not be pursued.

What does the criteria accessible mean regarding market segments?

Marketers must be able to reach and serve the segment.

The combination of activities that represent everything a firm can do to influence demand for its good, service, or idea is called the

Marketing Mix

Which statement best differentiates how marketing benefits accounting versus finance?

Marketing efforts give accounting inflows to track, cash flow to pay expenses, and taxes to be calculated, whereas these same efforts give finance a reason to expand business or invest in capital expenditures. Without the efforts of marketing (the correct products, prices, promotion, and place to sell) there would be no inflows for accounting to track, cash flow to pay expenses, or taxes to be calculated. The role of finance is related to expectations of return on marketing efforts. Without successful marketing, there is no need to expand a business or invest in capital expenditures because the firm is not selling products and generating revenue.

Repositioning definition

Modifying a products position to respond to consumer demands and marketplace changes. May change product, price, name, or logo.

The market segment criterion stating that market segments must be large enough for the firm to make a profit by serving them is

Substantial Designing a cereal for people who are over 100 years of age or athletic shoes for people who wear larger than a size 24 shoe are not viable options because the market for each product is not substantial enough for the firm to make sustainable profits.

Evaluate Segment Attractiveness

Substantial: Too small and it is insignificant.Too big and it might need it's own store. Reachable Know the product exists.Understand what it can do.Recognize how to buy. Responsive Customers must:React positively to firm's offering.Move toward the firms products/services.Accept the firm's value proposition. Profitable - Going to the segment that has the most profit potential. Identifiable: Who is in their market?Are the segments unique?Does each segment require a unique marketing mix?

Patagonia, a California-based clothing company, is deeply committed to the environment. The company makes fleece jackets out of recycled bottles, uses solar panels to generate most of the electricity at its headquarters, and even tells its customers in its advertisements to think twice before buying anything, all in an effort to reduce its carbon footprint. This is an example of how Patagonia is engaged in

Sustainable Marketing Sustainable marketing is the process of creating, communicating, and delivering value to customers in a way that recognizes and incorporates the concept of sustainability. In addition to having sustainable initiatives, many companies have sustainability engrained in their ethos. A product that has a sustainable competitive advantage exhibits characteristic that are rare, valuable, and hard to imitate.

When marketers evaluate each market segment and determine which segment or segments present the most attractive opportunity to maximize sales, this process is known as

Targeting After market segmentation, the firm must review the segments to determine which segment(s) to target. Targeting occurs when marketers evaluate each market segment and determine which segment or segments present the most attractive opportunity to maximize sales.

evaluative criteria.

The attributes a consumer considers important about a certain product

Customer Value

The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it

competitive advantage.

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category

A firm has decided to replace the hand-held computers that employees use to take orders. In this case, the role of an order-taking employee in the buying center is the

User The employee who takes orders on a hand-held computer represents a "user" in the buying center. Users are the individuals who use the product once it is acquired; they often help in developing specifications.

an internal information search.

When consumers think about their previous experiences with a product or a brand when shopping for products

What tool provides an excellent framework to determine if a firm will be successful targeting a specific segment?

a SWOT analysis

Retailer

a channel intermediary that sells mainly to consumers such as a grocery store or restaurant, sells mainly to end-user consumers

Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy?

a differentiated marketing strategy

Which of the following represents a consumer want?

a vacation A want is something that you would like to have. Most of us make decisions beyond our basic needs and more in response to fulfilling our wants. A vacation is something nice to have, but it is not necessary for survival.

What are the two most commonly used demographic variables used by marketers?

age and gender Because they are often the easiest to identify, age and gender are the most commonly used demographic variables used by marketers.

What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers?

an undifferentiated targeting strategy

Undifferentiated targeting is a strategy that

approaches the marketplace as one large segment

Lifzo, a popular energy drink, uses well-known soccer players as its brand ambassadors. Its advertising focuses on how consuming Lifzo will raise a sportsperson's energy levels. In this scenario, soccer players represent a(n) _____ for sportspeople.

aspirational reference group An aspirational reference group refers to the individuals a consumer would like to emulate.

the segmentation base that is often the most difficult to use is

behavioral segmentation

Occasion segmentation

can help firms build up product usage- ex: campbells advertises its soups more in the cold winter months -starbucks welcomes the pumpkin spice latte, sold only in the fall -companies try to consumption, consumers drink orange juice in the morning but orange growers have promoted drinking orange juice is cool, healthful refresher at other times of the day dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Which of the following statements defines market segmentation bases?

characteristics of consumers that influence their buying behavior Marketers use segmentation bases, which are characteristics of consumers that influence their buying behavior, to divide the market into segments

positioning

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

The five stages most consumers go through when deciding which product or service to buy is called the

consumer deicison making process

The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it is referred to as

customer value Customer value is the perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it.

Business-to-business firms generally segment their markets according to what three variables?

demographic, geographic, and behavioral

In order for a product to create value for a customer, it must enrich the lives of consumers with

designs, features, and functions that they need and want. Recall that a product is the specific combination of goods, services, or ideas that a firm offers to its target market. This product enriches the lives of consumers with designs, features, and functions that they need and want. When marketers successfully match products to consumers' needs and wants, consumers are more likely to purchase and use those products—and that is where value is created.

Positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general positioning assumes that consumers will compare goods and services on the basis of benefits.

A fitness gear shop that typically sells workout clothes and running shoes has begun selling cell phone and tablet cases in the attempt to capitalize on its visual brand. This strategy exemplifies

diversification. Diversification is a marketing strategy that seeks to attract new customers by offering new products that are unrelated to the existing products produced by the organization. Since the fitness gear shop is known for only selling fitness-related items, the decision to sell cell-phone and tablet cases would be a way for the business to diversify.

Behavioral Segmentation

divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product -best starting point for building market segments

demographic segmentation

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation -most popular bases for segmenting customer groups

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

income segementation

dividing a market into different income segments marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel have long used this

Market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

benefit segmentation

dividing the market into segments according to the different benefits that consumers seek from the product requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit-Ex: schwinn makes bikes, their urban bikes are " for riders who want a functional, durable, and stylish bike to commute or ride casually in urban areas"

In his job interview, Fenton was asked about his GPA, his leadership experience, skill sets, and his work experience. These questions were asked by the employer to compare Fenton to the other applicants and are referred to as

evaluative criteria. Since the employer is using GPA, leadership experience, skill sets, and work experience to compare job applicants, these are things that are important to the employer and therefore, are considered evaluative criteria.

Opinion leaders are people who:

exert influence on consumer buying decisions by virtue of the knowledge that they possess.

In the consumer decision-making process, searches for information fall into two main categories:

external and internal

The sociocultural influences on consumer behavior are formally called

family influences, reference groups, and opinion leaders. Sociocultural factors develop from a consumer's relationships with others and can significantly impact his or her buying behavior. Sociocultural influences that impact the consumer decision-making process include family members, reference groups, and opinion leaders.

Each of the six distinct stages of the _____ impacts consumer behavior; firms will market to each of these stages, offering such products and services as retirement investments.

family life cycle Family members are one of the greatest influences on consumer behavior. The level of influence can vary across families and can evolve as a family ages and new members join the family through marriage or birth. The family life cycle describes the six distinct family-related phases that an individual progresses through over the course of his or her lifetime.

All of the following are outcomes of a successful marketing strategy except

fewer direct competitors A successful marketing strategy can lead to higher profits, stronger brands, larger market share, and a number of other desired outcomes for the organization. While an organization might like to have fewer direct competitors, this will not be accomplished with a successful marketing strategy.

When selecting a target market, firms should consider three important factors:

growth potential, level of competition and strategic fit

when selecting a target market, firms should consider three important factors:

growth potential, level of competition and strategic fit

Market Development

growth strategy targeting new customers with their existing inventory of goods and services.

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

The buying center roles are

initiator, influencer, gatekeeper, decider, buyer and user Initiators- suggest purchasing a product or service Influencer - person whose views influence other members of the buying center in making the final decision. Gatekeepers - typically secretaries and tech personnel. They control the flow of information to and among others within the buying center. Buyers who deal directly with a vendor are gatekeepers.who control the flow of information Deciders-have the final decision, deciders choose the products. Buyer - member of the buying center who handles the actual paperwork. In some firms, a full-time purchasing agent does this. Buyers select suppliers and negotiate the terms of purchase. Users - The users will be the ones to use the product, initiate the purchase process, generate purchase specs, and evaluate product performance after the purchase.

B2B marketing professionals operate in three main categories of business markets: government markets, reseller markets, and

institutional markets Business-to-business marketing professionals focus on several major categories of business markets, including government markets, reseller markets (which includes wholesalers), and institutional markets (which include nonprofits).

Deceptive pricing involves

intentionally misleading customers with price promotions. Deceptive pricing is an illegal practice that involves intentionally misleading customers with price promotions.

Secondary data comes from which two types of sources?

internal or external

Wholesaler

is a firm that sells goods to anyone other than an end-user consumer

One advantage of qualitative research is that

it uncovers details concerning the motivations behind behaviors.

A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue is called

lifestyle segmentation

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as

market segmentation

Market segmentation produces relatively homogenous groups of consumers called

market segments

Diversification

marketing strategy that seeks to attract new customers by offering new products that are unrelated to the existing products produced by the organization.

Market segmentation involves dividing a larger market into smaller market segments based on

meaningfully shared characteristics.

Age and life-cycle segmentation

offering different products or using different marketing approaches for different age and life-cycle groups

Which of the following best defines the marketing growth strategy of diversification?

offering new products that are unrelated to the existing products produced by a company involves entering into a new market or industry - one that your business doesn't currently operate in - while also creating a new product for that new market.

Which of the following accurately lists the levels in Maslow's hierarchy of needs, from the lowest level to the highest level?

physiological, safety, love/belonging, esteem, and self-actualization

The first step in the consumer decision-making process is

problem recognition

Marketers generate value through decisions based on the four Ps of the marketing mix, which are

product, price, place, and promotion. The primary way that marketers generate value is through decisions on product, price, place, and promotion. These elements are known as the four Ps of the marketing mix. The marketing mix represents everything that a firm can adjust to affect value and influence demand for its products.

As it relates to customers, the aim of marketing is to

provide customers with value Whether they are selling a product or a service, organizations today are constantly looking for new ways to create value for the customer.

What is the key to creating value?

providing consumers with benefits that meet their needs and wants

Psychographic segmentation refers to the science of segmenting markets based on

psychology and demographics.

Market segments are

relatively homogenous groups of consumers that result from the segmentation process.

A consumer who is engaging in an internal information search is most likely engaging in:

ritual consumption

According to Maslow's hierarchy of needs, once their physical needs have been satisfied, consumers' ____ take precedence.

safety needs

need levels in Maslow's hierarchy of needs?

safety, love/belonging, self actualization, esteem

psychographic segmentation

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics divides buyers into different segments based on social class, lifestyle, or personality characteristics-people in the same demographic groups can have very different psychographic characteristics -EX: VF corporations offers a closet full of more than 30 premium lifestyle brands that "fit the lives of consumers the world over, from commuters to cowboys, surfers to soccer moms, sports fans to rock bands -personality variables -->different soft drinks target different personalities

A new ice cream shop in town allows customers to create their own sundaes using various flavors of ice cream and toppings. The store owners have decided to have a contest for the most unique customer creation. They are asking customers to create a sundae, take a picture of their creation and post it on their Facebook page as well as on Instagram so people can vote for their favorite. The winning creation will be featured on the shop's menu. This use of social media relates to which promotional tool?

Advertising

When deciding how to position a product, the first step a marketer would take is to _____________.

Analyze competitors'positions

The three basic characteristics of a quality marketing objective is that it be

ApplicationPrice/quality RelationshipAttributes

Identify the six positioning steps.

Determine consumers' perceptions and evaluations of the product or service in relation to competitors', identify competitors' positions, determine consumer preferences, select the position, monitor the positioning strategy.

Targeting Stategies

Differentiated Concentrated Micromarketing or one-to-to Undifferentiated or mass marketing

Gender segmentation

Dividing a market into different groups based on gender long been used in marketing clothing, cosmetics, toiletries, toys, and magazines

Segmentation Methods

Geographic: Continent and w/in country Demographic: Age, gender, and income (most common) Psychographic: Lifestyle, self-concept, self-values Benefits: Convenience, economy, prestige Behavioral: Occasion, Loyalty

Fields & Greens is a farm-to-table restaurant that uses only locally sourced ingredients. It supports its local economy and gives back to the community by employing only those who live in or near town and by partnering with small, family-owned farms in the area. Through this strategy, Fields & Greens is appealing to its market segment's sense of

Ideals The VALS™ framework, which stands for Values and Lifestyles Framework, is perhaps the most commonly used psychographic segmentation tool. VALS measures two dimensions: primary motivation and resources, and identifies three primary motivations: ideals, achievement, and self-expression. Those motivated by their ideals tend to be thinkers (informed, reflective, content) or believers (literal, loyal, and moralistic).

Michaels is an arts and crafts shop that sells everything from paint to silk flowers. If Michaels were to pursue a diversification growth strategy, which of the following actions would most align with this strategy?

Open a Michael's cafe Diversification strategies seek to attract new customers by offering new products that are unrelated to the existing products produced by the organization. A café would be considered a service unrelated to the existing line of arts and crafts products and services.

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as

Positioning

Cognitive dissonance occurs during which stage of the consumer decision-making process?

Post purchase evaluation Cognitive dissonance is sometimes referred to as buyer's regret and often arises when consumers begin to wonder if they made the right purchase decision. This happens during the postpurchase evaluation stage.

When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing, they decided to offer a new product, one that offered a full serving of vegetables and a full serving of fruit. They called the product V8 V-Fusion and they marketed it to their original V8 customers in hopes of increasing sales. This is an example of what kind of marketing strategy?

Product development Product development is a marketing strategy that involves creating new goods and services for existing markets.

Which of the following accurately represents the 4 Ps of the marketing mix?

Product, price, place, and promotion

Marketing Strategy

Step 1: Strategy or ObjectivesStep 2: Segmentation Methods Step 3: Evaluate Segment Attractiveness Step 4: Select Target MarketS tep 5: Identify and Develop Positioning Strategy

Janie thinks that Herbal Essence is the best brand of shampoo on the market and refuses to buy any other brand. For Janie, Herbal Essence has established a competitive advantage over the competing products.

True

A maker of high-performance fitness monitors risks losing domestic market share if it doesn't market globally like its main competitors—this exemplifies a global marketing decision based on necessity. However, if this same maker markets globally in order to accommodate the need of business travelers seeking to track their fitness while on the road, this would exemplify a global marketing decision based on demand.

True A big reason that firms market globally is that they risk losing market share if they don't. By using profits earned in larger global markets, the firm's competitors can afford to underprice their fitness monitors domestically. In many cases, firms market their products in international markets because customers demand that the products be made available.

Marketers create value and improve the chances that consumers will purchase the firm's products when they develop products that allow consumers to satisfy their needs and wants.

True Marketers focus on the needs and wants of the firm's customers. By developing products that match with customer's needs and wants, marketers create value and improve the chances that consumers will purchase their firm's products.

Which of the following is a behavioral segmentation variable?

Usage