Test 1 - Ch 4

Question 1

STP Marketing

Answer 1

Segmentation Targeting & Positioning

Question 2

Target Market

Answer 2

A sub-group of a larger market chosen as the focal point for a marketing or advertising campaign

Question 3

Positioning -

Answer 3

Designing and representing a brand in a way that is distinct in the consumer’s mind

Question 4

Positioning Strategy

Answer 4

Selecting key themes to communicate to a target market

Question 5

Marketing Strategy evolves as a result of

Answer 5

Target market, position, positioning strategy

Question 6

Market Segmentation

Answer 6

Break the market into smaller, more homogenous segments (demographic, geo, pyschographics/lifestyle, benefits)

Question 7

Demographic Segmentation

Answer 7

o Age
o Gender
o Race
o Marital Status
o Income
o Education
o Occupation

Question 8

Geographic Segmentation

Answer 8

o Region
o Climate
o Urban
o Rural
o Country

Question 9

Psychographics and Lifestyle Segmentation

Answer 9

o Lifestyle segmentation provides insight into consumers’ motivations
 Opinions
 Activities
 Interests

Question 10

Benefit Segmentation

Answer 10

o Passenger Safety?
o Prestige?
o Fuel Economy?

Question 11

Segmenting by Usage Patterns and Commitment levels

Answer 11

o Advertising and promotion targeted to:
 Heavy users
 Nonusers
 Brand-loyal users
 Switchers/Variety seekers

Question 12

Business to Business Markets

Answer 12

• Markets segmented by:
• Usage rates
• Geographic location
• SIC (Standard Industrial Classification) Code
• Stage in the purchase process: first time vs. experienced buyers
• Benefits desired

Question 13

Targeting

Answer 13

 Specifically target discrete market segments
 Examine your ability to deliver value to the segments and costs of new capabilities—distinct competencies of the firm
 Research segment size, growth potential and usage frequency
 Analyze the competitive environment
 Find a ‘niche you can scratch’
 Prioritizing Target Segments

Question 14

Positioning

Answer 14

 Position the brand to appeal to the targeted segments
 …is based on the substance of the brand’s values.
 …is consistent over time
 …is both simple AND distinctive.
• Benefit Positioning - Volvo (Safety)
• User Positioning – Nike (Athletes or sports related)
• Competitive Positioning - Avis vs. Hertz

Question 15

Perceptual map

Answer 15

how we order the quality and service (walmart < target < jcp < macy < nordstorm)

Question 16

Repositioning

Answer 16

 Used to revive an ailing brand or fix a lackluster new market entry. (gucci became luxury brand in 2010s)
 The challenge: changing perceptions of a brand forged over years of advertising