Lecture 5 - Marketing strategy Flashcards
True or false? A marketing strategy includes 4 steps: segmentation, targeting, positioning and differentiation.
True
A marketing plan is…
A) An organization’s plan for how a brand or product line will meet its objectives.
B) A collection of advertising campaigns designed to increase brand awareness over a short period.
C) A financial report that focuses solely on a company’s pricing strategy and revenue forecasts.
D) A static document that remains unchanged, regardless of market conditions or consumer behavior.
A) An organization’s plan for how a brand or product line will meet its objectives.
What is the main difference between segmentation and targeting?
A) Segmentation is the process of dividing a market into distinct groups based on shared characteristics that are meaningful to consumption, while targeting involves selecting the most profitable or relevant segments to focus marketing efforts on.
B) Segmentation focuses on individual consumers, while targeting focuses on entire markets.
C) Segmentation is only used for new product launches, while targeting is used for existing products.
D) Segmentation determines a brand’s competitive advantage, while targeting determines its pricing strategy.
A) Segmentation is the process of dividing a market into distinct groups based on shared characteristics that are meaningful to consumption, while targeting involves selecting the most profitable or relevant segments to focus marketing efforts on.
What is the main difference between positioning and differentiation?
A) Differentiation applies only to premium brands, while positioning is used by all brands to compete in the market.
B) Differentiation focuses on advertising and promotional tactics, while positioning is only concerned with pricing strategies.
C) Positioning is a short-term tactic, while differentiation is a long-term branding strategy.
D) Positioning is about how a brand is perceived in the consumer’s mind relative to competitors, while differentiation refers to the unique features that set a product apart from competitors.
D) Positioning is about how a brand is perceived in the consumer’s mind relative to competitors, while differentiation refers to the unique features that set a product apart from competitors.
Which of the following best describes the key distinction between psychographic and behavioral segmentation?
A) Psychographic segmentation focuses on consumers’ values, attitudes, and lifestyles, while behavioral segmentation categorizes consumers based on their purchasing patterns, brand loyalty, and product usage.
B) Behavioral segmentation is based on where consumers live, while psychographic segmentation examines their demographic characteristics.
C) Psychographic segmentation only applies to luxury brands, whereas behavioral segmentation is used for mass-market products.
D) Behavioral segmentation is a form of geographic segmentation, as it groups consumers based on regional purchasing behavior.
A) Psychographic segmentation focuses on consumers’ values, attitudes, and lifestyles, while behavioral segmentation categorizes consumers based on their purchasing patterns, brand loyalty, and product usage.
Which of the following best demonstrates a flawed approach to volume and profitability segmentation?
A) A coffee chain introduces a tiered loyalty program that offers greater discounts to high-spending customers who visit frequently.
B) A luxury hotel prioritizes marketing efforts toward high-net-worth individuals who book premium suites rather than occasional budget travelers.
C) A car manufacturer sets uniform pricing across all customer segments, disregarding the impact of purchase frequency and long-term profitability.
D) A software company tailors its pricing strategy by offering enterprise-level packages to large corporations and basic plans for individual users.
C) A car manufacturer sets uniform pricing across all customer segments, disregarding the impact of purchase frequency and long-term profitability.
Which of the following best illustrates the use of socio-demographic segmentation in marketing?
A) A global shoe company categorizes customers based on climate conditions, offering waterproof boots in rainy regions and sandals in warmer climates.
B) A luxury skincare brand targets women aged 40+ with anti-aging products, recognizing that age influences skincare needs and purchasing behavior.
C) A subscription box service divides its customers based on their personal hobbies and interests, such as gaming or fitness.
D) A smartphone brand promotes its latest model based purely on features, assuming that all consumers value technology equally, regardless of demographics.
B) A luxury skincare brand targets women aged 40+ with anti-aging products, recognizing that age influences skincare needs and purchasing behavior.
What is the other type of segmentation found in B2B market segmentation along with economic segmentation?
1. Geographic.
2. Organizational culture & procurement policy
3. Behavioural
4. Volume and profitability.
- Organizational culture & procurement policy
Which of the following factors most significantly affect the profitability of a target market?
A) Segment Size – The number of potential customers in a given segment determines its revenue potential.
B) Growth Potential – A segment’s long-term profitability depends on whether it is expanding or declining.
C) Accessibility – The ease of reaching a segment through distribution channels and marketing efforts influences profitability.
D) Competition – High competition in a segment can reduce profitability by forcing companies to lower prices or increase marketing costs.
E) All of the above
E) All of the above
Which of these is not a type of targeting?
1. Mass
2. Segmented
3. Niche
4. Personalized
5. Micro
- Micro
True or false? Positioning must represent tangible or symbolic value to the customer.
True
How can a business differentiate its product or service?
A) By offering volume discounts and flexible payment terms
B) By improving product quality and providing warranties
C) By expanding geographical coverage and adjusting business hours
D) By enhancing brand image through advertisements and loyalty programs
E) All of the above
E) All of the above
Which of the following is true?
1. Differentiation can not be tangible but can be symbolic.
2. Differentiation can be tangible but not be symbolic.
3. Differentiation can not be tangible, nor be symbolic.
4. Differentiation can not be tangible and can be symbolic.
- Differentiation can not be tangible and can be symbolic.
What is the correct format of a positioning statement?
A) For [target segment], brand is a concept that [most important benefit] because [justification].
B) Brand is a concept that [most important benefit] for [target segment] because [justification].
C) For [target segment], brand is a product that [justification] because [most important benefit].
D) Brand is a concept for [target segment] that [justification] because [most important benefit].
A) For [target segment], brand is a concept that [most important benefit] because [justification].
What are key elements of a strong positioning statement? (Multiple answers possible)
A) Providing value for the target customer
B) Being relevant to the target customer
C) Ensuring clarity and avoiding confusion
D) Maintaining consistency over time
All of the above
