MBA 706 Exam 2- Koksal
Market Segmentation - answer The process of dividing consumers into groups with
similar wants and needs
undifferentiated marketing - answer A company targets all consumers with a single
offering instead of segmenting
differentiated marketing - answer company targets different segments using different
marketing mixes
concentrated marketing - answer company targets a single segment
A Market segment must be: - answer Measurable
Accessible
Substantial
Unique
Appropriate
Stable
The Bases (Types) of Segmentation - answerGeographic
Geodemographic
Demographic
Behavioral
Psychographic and lifestyle
geographic segmentation - answermarkets are divided into different geographic units
(countries/regions/cities). One of the easier methods
demographic segmentation - answerMarkets are divided into groups using demographic
variables (age/sex/education/etc.)
Behavioral Segmentation - answermarkets are divided into groups based on behavioral
measures (attitudes, knowledge, loyalty, benefits sought, etc)
benefit segmentation - answersegmenting consumers based on what benefits they seek
(example: style vs comfort)
User Status - answerSegmenting consumers based on user status (users, non- users,
potential users)
loyalty status - answersegmenting based on brand loyalty
, Psychographic and lifestyle segmentation - answerSegmenting markets based on
personalities, values, lifestyles, etc
Market Targeting - answerDeciding which segments should be approached based on:
Size and growth potential of segments
Attractiveness of segments
Organization's objectives and resources
single segment concentration - answerCompany focuses on a single segment (can be
risky)
Selective specialization - answerFocusing on several segments (reduces risk
associated w/ sing seg. concentration)
Product specialization - answerCompany specializes in a particular product type and
markets it to different segments
market specialization - answercompany focuses on a segment and satisfies its needs
with various products
Full Market Coverage - answerCompany targets all (most) segments with all the
products they need
Product positioning - answerDesigning an image based on using various marketing
mixes
What place does the product occupy in the market.
How is the product different from actual/potential competitors?
Process of positioning - answerchoosing the possible competitive advantages to
emphasize and implementing the positioning concept
Failed communication can lead to - answerConfused Positioning
Over-Positioning
Under Positioning
confused positioning - answerleaving buyers with a confused image of a company
over positioning - answerconsumers see company's products as to expensive and fail
too see full range of products
Under positioning - answercompany fails to communicate its positioning clearly and
therefore the company's position for the consumer is vague
Repositioning - answerchanging the position of a company through 4 strategies:
Market Segmentation - answer The process of dividing consumers into groups with
similar wants and needs
undifferentiated marketing - answer A company targets all consumers with a single
offering instead of segmenting
differentiated marketing - answer company targets different segments using different
marketing mixes
concentrated marketing - answer company targets a single segment
A Market segment must be: - answer Measurable
Accessible
Substantial
Unique
Appropriate
Stable
The Bases (Types) of Segmentation - answerGeographic
Geodemographic
Demographic
Behavioral
Psychographic and lifestyle
geographic segmentation - answermarkets are divided into different geographic units
(countries/regions/cities). One of the easier methods
demographic segmentation - answerMarkets are divided into groups using demographic
variables (age/sex/education/etc.)
Behavioral Segmentation - answermarkets are divided into groups based on behavioral
measures (attitudes, knowledge, loyalty, benefits sought, etc)
benefit segmentation - answersegmenting consumers based on what benefits they seek
(example: style vs comfort)
User Status - answerSegmenting consumers based on user status (users, non- users,
potential users)
loyalty status - answersegmenting based on brand loyalty
, Psychographic and lifestyle segmentation - answerSegmenting markets based on
personalities, values, lifestyles, etc
Market Targeting - answerDeciding which segments should be approached based on:
Size and growth potential of segments
Attractiveness of segments
Organization's objectives and resources
single segment concentration - answerCompany focuses on a single segment (can be
risky)
Selective specialization - answerFocusing on several segments (reduces risk
associated w/ sing seg. concentration)
Product specialization - answerCompany specializes in a particular product type and
markets it to different segments
market specialization - answercompany focuses on a segment and satisfies its needs
with various products
Full Market Coverage - answerCompany targets all (most) segments with all the
products they need
Product positioning - answerDesigning an image based on using various marketing
mixes
What place does the product occupy in the market.
How is the product different from actual/potential competitors?
Process of positioning - answerchoosing the possible competitive advantages to
emphasize and implementing the positioning concept
Failed communication can lead to - answerConfused Positioning
Over-Positioning
Under Positioning
confused positioning - answerleaving buyers with a confused image of a company
over positioning - answerconsumers see company's products as to expensive and fail
too see full range of products
Under positioning - answercompany fails to communicate its positioning clearly and
therefore the company's position for the consumer is vague
Repositioning - answerchanging the position of a company through 4 strategies:
