Class 2

Question 1

Importance of segmentation

Answer 1

Not all customers are the same
Essential because the market is not homogeneous —> difficult and costly to satisfy all customers vs. limited company recourses (thus leading to the highest return)

Question 2

Criteria for segmentation

Answer 2

distinctive - respond differently to Marketing mix

Operational - can be identified and reached

Substantial (large enough for profitability)

Question 3

Level of classification

Answer 3

Personal characteristics
-demographic, geographic and life style aspects

Benefits sought
- the aspects of product that customers are looking for (like quality and price)

Behavior
Purchasing pattern, brand loyalty actual profitability

Question 4

Targeting

Answer 4

Addressing the right people with the right product

Customer focus
-what benefits are important for what segments

Company focused
-how good is the company at providing these benefits

Competitive focused
-how good is the competition at providing those benefits

Question 5

Undifferentiated targeting strategy

Answer 5

Mass marketing strategy (e.g vocal cola)

Concentrated segment —> single target market approach

Niche strategy

Multiple target market approach

Question 6

Mere exposure effect

Answer 6

People like things that they get exposed to regularly (important to have a clear position and to expose the consumer often)

Question 7

Positioning

Answer 7

Is about occupying a position in the consumers mind

Info about a brand

i. target
ii. Frame of reference
iii. Point of difference
iiii. Reason to believe

Question 8

Quantitative Tools for positioning

Answer 8

Quantitative—> perceptual maps
select two important attributes
—> plot - use factor analysis to reduce number of attributes
Regression analysis to examine what factors are important

Question 9

Qualitative Tools for positioning

Answer 9

ZMET asking customers to collect image of the brand

—> get to know how the consumer views a company