07 - Customer-Driven Marketing Strategy

Question 1

four major steps in designing a customer-driven marketing strategy

Answer 1

market segmentation

market targeting

differentiation

positioning

Question 2

market segmentation

Answer 2

involves dividing market into market segments - similar characteristics, needs or behaviours

• smaller segments that can be reached more efficiently and effectively

Question 3

different variables used to segment market

Answer 3

geographic

demographic (age, occupation, education)

psychographic (lifestyle, personality)

behavioural (usage rate, benefits, brand loyalty…)

Question 4

variables used to segment international markets

Answer 4

geographic

economic

political + legal

cultural

Question 5

requirements for effective segmentation

Answer 5

measurable

accessible

substantial

differentiable

actionable

Question 6

market targeting

Answer 6

chose which market segment to target

Question 7

difference b/w differentiated and undifferentiated marketing

Answer 7

undifferentiated = mass marketing

differentiated = separate offers for different market segments

Question 8

concentrated (niche) marketing

Answer 8

strategy in which a firm goes after a large share of one or a few segments or niches

• requires great knowledge of market
• should be large enough to exploit but not attract competition

Question 9

micromarketing

Answer 9

tailoring products and programs to the needs and wants of specific individuals and local customer segments

• local marketing
• individual marketing

Question 10

factors impacting choice of targeting strategy

Answer 10

company’s resources

variability of product

product’s life-cycle stage

market variability

competitors’ marketing strategies

Question 11

positioning

Answer 11

the way a product is defined by consumers on important attributes

• place it occupies in consumers’ minds relative to competing products

Question 12

positioning maps

Answer 12

show consumer perceptions of their brands vs competitors on important attributes

• according to different criteria: price, quality…

Question 13

steps in differentiation and positioning task

Answer 13

1. identify value differences + advantages
2. choose right competitive advantages
3. select positioning strategy - value proposition
4. effectively communicate + deliver the chosen position to the market

Question 14

differentiation should be…

Answer 14

important
distinctive
superior 
communicable
profitable
sustainable

Question 15

factors in segmentation of business markets

Answer 15

operating characteristics

personal characteristics

purchasing approaches

situational factors