BU352 - CH 7,8,9

Question 1

what are the Steps of an STP analysis?

Answer 1

1. Strategy or Objectives
2. Profile Segments
3. Evaluate Segment Attractiveness
4. Select Target Market
5. Identify and Develop Positioning Strategy

Question 2

What are the different Methods for Segmenting Markets?

Answer 2

a) Geographic
b) Demographic
c) Psychographic
d) Behavioural

Question 3

Determining psychographics involves knowing and understanding which three components?

Answer 3

a) Self-Values – goals for life, not just the goals one wants to accomplish in a day
b) Self-Concept – the image a person has of him/herself
c) Lifestyles – refers to the way a person lives his/her life to achieve goals

Question 4

What is Behaviour Segmentation?

Answer 4

group of consumers based on the benefits they derive from products or services, from usage rate, their user status, and their loyalty

Question 5

how do you Evaluation of Segment Attractiveness?

Answer 5

a) Identifiable
b) Reachable
c) Responsive
d) Substantial and Profitable

Question 6

What are the different Segmentation Strategies?

Answer 6

a) Mass or Undifferentiated (salt,sugar)
b) Differentiated (change marketing to appeal to different segments)
c) Concentrated - (A&F is 18-22, SSD for techies)
d) Micromarketing One-to-One (Custom product for each customer)

Question 7

what is mass customization?

Answer 7

This is the practice of interacting with many people individually to create custom-made products or services; providing one-to-one marketing to the masses.

Question 8

Firms Position Their Products/Services According To what 5 things?

Answer 8

a) Value - relationship of price of quality
b) Product Attributes - focuses on the attributes of the product most important to the target market
c) Benefits and Symbolism – emphasizes the benefits of the brand as well as the psychological meaning of the brand to consumers
d) Competition - firms can position their products/services head-to-head against a specific competitor or an entire/product/service classification
e) Market Leadership-companies may emphasize their leadership position within their industry

Question 9

when developing a positioning strategy, firms go through what 5 important stages?

Answer 9

1. Determine consumers’ perceptions and evaluations of the product or service in relation to competitors
2. Identify competitors’ positions
3. Determine consumer preferences
4. Selection the position
5. Monitor the positioning strategy

Question 10

What is Brand Repositioning (Rebranding)

Answer 10

– a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences

Question 11

What are the Reasons Firms Innovate?

Answer 11

• To respond to changing customer needs, prevent decline in sales, avoid market saturation, diversify their risk and respond to short product life cycles.

Question 12

what is the Diffusion/Adoption of Innovation?

Answer 12

the adoption or diffusion of innovation is the process by which the use of an innovation, whether a product or service, spreads throughout a market or group over time and over various categories of adopters

Question 13

5 Categories of Consumer Adoption?

Answer 13

• Innovators - risk takers and regarded as highly knowledgeable
• Early Adopters - purchase product after careful review
• Early Majority - wait until initial bugs are all work out
• Late Majority - when this group enters the product has achieved full market potential
• Laggards - tend to avoid change and rely on traditional production until they are no longer available

Question 14

Factors Affecting Difusion of Innovation?

Answer 14

a) Compatibility - if a product is consistent with peoples past behaviour, their needs and what they value then the diffusion should happen relatively quickly
b) Observability - when products can be easily observed in use, their benefits or applications are easily communicated to other potential consumers thus enhancing the diffusion process
c) Complexity and Trialability – products that are relatively less complex are also relatively easy to try. These products will generally diffuse more quickly than products that are complex and that cannot be tested easily
d) Relative Advantage - if a product is perceived to be better than substitutes, then the diffusion will be relatively quick

Question 15

What are the steps in the Product Development Process?

Answer 15

• Idea Generation
• Concept Testing
• Product Development
• Market Testing
• Product Launch
• Evaluation of Results

Question 16

Steps in Product Life Cycle

Answer 16

• Introduction stage (Low Sales, Low Profit, Innovators, few competitors)
• Growth Stage - Rising Sales, Rapidly rising profits, Early adopters, early majority, few but increasing competitors
• Maturity Stage - Peak Sales, Peak to declining profits, Late Majority consumers, High number of competitors
• Decline Stage - Declining sales,profits with Laggards as consumers. Low number of competitors.

Question 17

What are the different types of products/Services?

Answer 17

• Specialty
• Shopping
• Convenience
• Unsought

Question 18

Product line breadth vs depth?

Answer 18

Product Line Breadth – the number of product lines, or variety, offered by the firm
Product Line Depth – the number of categories within a product line

Question 19

Value of Branding?

Answer 19

a) Brands Facilitate Purchasing - easily recognized by consumers
b) Brands Establish Loyalty - consumers learn to trust certain brands
c) Brands Protect from Competition - less competition if brand has loyal customer base
d) Brands Reduce Marketing Costs - well-known brands can allow firms to spend less
e) Brands are Assets - can be legally protected through trademarks/copyrights
f) Brands impact Market Value - well-known brands can have a direct impact on bottom line

Question 20

Three areas of Branding?

Answer 20

Brand Equity - summarizes the value that a brand adds or subtracts from the offering’s value
Brand Ownership - Brands can be owned by any firm in the supply chain
Brand Name - Different strategies t name their brands and product lines

Question 21

Describe the types of branding strategies used by firms?

Answer 21

1. Brand Ownership
2. Naming Brands
3. Brand Extension
4. Cobranding
5. Brand Licensing

Question 22

Explain Brand Equity Strategies?

Answer 22

1. Brand Awareness – measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, slogan) in the firms communications to consumers
2. Perceived Value – the relationship between a product or service’s benefits and costs
3. Brand Association – the mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality
   Brand Personality – set of human characteristics associated with a brand, which has symbolic or self-expressive meanings for consumers
4. Brand Loyalty – occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers within the same category

Question 23

Explain Brand Ownership Strategies?

Answer 23

1. Manufacturer Brands (National Brands) – brands owned and manufactured by the manufacturer
2. Private Label (Store Brands) – brands developed by a retailer and available only from that retailers
3. Generic Brands – a product sold without a brand name (typically commodities)

Question 24

Explain Brand Name Strategies?

Answer 24

1. Corporate of Family Brand – the use of a firm’s own corporate name to brand all of its product lines and products
2. Corporate and Product Line Brand – the use of a combination of family brand name and individual brand name to distinguish a firm’s products
3. Individual Brands – the use of individual brand names for each of a firm’s products

Question 25

Identify the advantages that brands provide firms and consumers?

Answer 25

• Brands facilitate the consumer search process. Some customers are loyal to certain brands, which protects those brands from competition.
• Protect from counterfeiters and knock-offs
• Firms can spend relatively less on marketing because the brand and its associations help sell the product.
• brands have real market value as a company asset