Chapter 7: Targeting & Positioning

Question 1

What should you avoid in marketing?

Answer 1

Don’t try to be all things to all people

Question 2

How should you segment your market?

Answer 2

Segment your market in meaningful ways

Question 3

What methods should you use for targeting and positioning?

Answer 3

Target & Position Using Analytics

Question 4

What is segmentation in marketing?

Answer 4

the needs and wants of the most interested customers and focuses resources to maximize profits

Question 5

What are the five criteria for effective market segmentation?

Answer 5

1) Substantial: Enough to make a profit
2) Measurable: Size and purchasing power must be measurable & identified
3) Differentiable: Segments must respond differently to marketing strategies
4) Accessible: Ability to reach & serve the market
5) Actionable: Ability to develop strategies to attract the segment to the company’s products.

Question 6

What are segmentation bases?

Answer 6

characteristics that influence buying behavior

Question 7

What are the demographic segmentation characteristics?

Answer 7

include age, gender, income, family size, and marital status

Question 8

What is psychographic segmentation?

Answer 8

adds psychology and personality traits to demographics, focusing on lifestyle, opinions, interests, and activities

Question 9

What does geographic segmentation consider?

Answer 9

considers market size in an area, population shifts, and customer convenience based on location

Question 10

What is behavioral segmentation?

Answer 10

algorithm-based and focuses on behavior toward products, such as occasions, loyalty, and usage rate

Question 11

What is targeting in marketing?

Answer 11

Evaluating each market segment to determine which segments present the most attractive opportunity to maximize sales.

Question 12

What are the factors in selecting target markets?

Answer 12

1) Growth Potential
2) Level of Competition
3) Strategic Fit (with what the company is & wants to be)

Question 13

What are the 3 Target Market Strategies?

Answer 13

1) Undifferentiated Targeting
2) Differentiated Targeting
3) Niche Marketing

Question 14

What is undifferentiated targeting?

Answer 14

A strategy where the marketplace is viewed as one big segment

Example: “bananas”

Question 15

What is differentiated targeting?

Answer 15

A strategy that pursues several different target markets at once with different strategies for each.

Example: Target going after college students & families

Question 16

What is niche marketing?

Answer 16

A strategy that focuses on unique products that target a large share of a small market.

Example: “Eat Fit Go”

Question 17

What is positioning?

Answer 17

Activities to create a certain perception of a product in the eyes of the Target Market.

Question 18

What is the first step in positioning?

Answer 18

Analyze Competitors’ Positions: Understand how customers perceive competition.

Question 19

What is the second step in positioning?

Answer 19

Define Competitive Advantage: Price-Quality Relationship, Attributes, & Application.

Question 20

What is the third step in positioning?

Answer 20

Evaluate Feedback: Continuously listen to your customers; use feedback to improve and change your positioning.

Question 21

What is a Positioning Statement?

Answer 21

Description of core target market & picture of how the firm wants the market to view its product.

Question 22

What are the three parts of a Positioning Statement?

Answer 22

1) Target Market 2) How customers should view the brand 3) How the brand is better.

Question 23

What is repositioning?

Answer 23

Reestablishing a product’s position in response to changes in the marketplace.