Marketing strategy

Question 1

Market segmentation

Answer 1

Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors and who might require separate marketing strategies or mixes.

+ Advantage: Predict consumer behaviour relatively well
- Disadvantage: Rather difficult to measure.

Question 2

Market targeting (targeting)

Answer 2

Evaluating each market segment’s attractiveness and selecting one or more
segments to serve

Question 3

Differentiation

Answer 3

Actually differentiating the market offering to create superior customer value.

Question 4

Positioning

Answer 4

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Question 5

Geographic segmentation

Answer 5

Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

+ Advantage: Easy to measure, easy to understand
- Disadvantage: They do not predict consumer behavior so well.

Question 6

Demographic segmentation

Answer 6

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education,
religion, ethnicity, and generation

+ Advantage: Easy to measure, easy to understand
- Disadvantage: They do not predict consumer behaviour so well.

Question 7

Age and life-cycle segmentation

Answer 7

Dividing a market into different age and
life-cycle groups.

Question 8

Gender segmentation

Answer 8

Dividing a market into different segments based on gender

Question 9

Psychographic segmentation

Answer 9

Dividing a market into different segments based on lifestyle or personality
characteristics.

Question 10

Behavioral segmentation

Answer 10

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Question 11

Occasion segmentation

Answer 11

Dividing the market into segments according to occasions when buyers
get the idea to buy, actually make their purchase, or use the purchased item.

Question 12

Benefit segmentation

Answer 12

Dividing the market into segments according to the different benefits that consumers seek from the product

Question 13

Intermarket (cross-market) segmentation

Answer 13

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Question 14

Target market

Answer 14

A set of buyers who share common needs or characteristics that a company decides to serve.

Question 15

Undifferentiated (mass) marketing

Answer 15

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

+ Low production and communication costs
→ lower prices
→ higher margins

Question 16

Differentiated (segmented)
marketing

Answer 16

A market-coverage strategy in which a firm targets several market segments and designs separate offers for each

Question 17

Concentrated (niche) marketing

Answer 17

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Question 18

Micromarketing

Answer 18

Tailoring products and marketing programs to the needs and wants of
specific individuals and local customer segments; it includes local marketing and individual marketing.

Question 19

Local marketing

Answer 19

Tailoring brands and marketing to the needs and wants of local customer
segments—cities, neighborhoods, and
even specific stores

Question 20

Individual marketing

Answer 20

Tailoring products and marketing programs to the needs and preferences
of individual customers

Question 21

Product position

Answer 21

The way a product is defined by consumers on important attributes—the
place it occupies in consumers’ minds relative to competing products

Question 22

Competitive advantage

Answer 22

An advantage over competitors gained by offering greater customer value either by having lower prices or providing more
benefits that justify higher prices

Question 23

Value proposition

Answer 23

The full positioning of a brand—the full mix of benefits on which it is positioned.

Question 24

Positioning statement

Answer 24

A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).

Question 25

Market positioning

Answer 25

Market positioning is the arranging for a product to occupy a clear, distinctive,
and desirable place relative to competing products in the minds of target consumers.

Question 26

Choosing a Differentiation and Positioning Strategy

Answer 26

• Identifying a set of possible competitive advantages to build a position
• Choosing the right competitive advantages
• Selecting an overall positioning strategy
• Communicating and delivering the chosen position to the market

Question 27

Points-of-difference (PODs)

Answer 27

Strong, favorable, unique brand associations, based on any kind off attribute or benefit:
- Desirable to customer
- Deliverable by the brand
- Differentiating from competitor
* Attribute based
* Image based

Question 28

Points-of-parity (POPs)

Answer 28

Associations that are shared with other brands – shared brand values
* Category: demonstrate category credentials (attributes that are
required to include)
* Competitive: POP that negate competitors POD’s

Question 29

Positioning maps

Answer 29

Positioning maps show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.