MBA 706 - Exam 3 QUESTIONS &
ANSWERS(GRADED A+)
Market Segmentation - ANSWERThe process of dividing consumers into groups with
similar consumer characteristics and product needs.
Concentrated (Target) Marketing - ANSWERFirms identify major market segments,
and then target a single segment with a single marketing mix.
Advantage of Concentrated Marketing - ANSWERConcentrated effort to that specific
segment; control cost to appeal only to that primary target segment.
Disadvantage of Concentrated Marketing - ANSWERPossibility of missed
opportunities; vulnerable to competition.
Example of Concentrated Marketing - ANSWERPiano Maker
Multiple Segmentation - ANSWERFirms target different segments with a unique
marketing mix for each segment.
Market Segmentation - ANSWERAllows managers to break the market into small
manageable groups, so that firms can tailor their offerings to satisfy different needs
and wants.
Three Marketing Strategies - ANSWERUndifferentiated (Mass Marketing),
Differentiated (Product-Variety), Concentrated (Target)
Undifferentiated (Mass Marketing) - ANSWERFirms sell a single product (with same
marketing approach) to all consumers.
Advantage to Undifferentiated Marketing - ANSWEREconomies of scale in
production, promotion, and distribution
Disadvantage to Undifferentiated Marketing - ANSWERIntense competition and
more sophisticated consumers
Example of Undifferentiated Marketing - ANSWERFord's Model T, Black & Decker
Differentiated (Product-Variety Marketing) - ANSWERFirms provide a wide variety of
differentiated offerings to different segments (sometimes to all consumers).
Advantage of Differentiated Marketing - ANSWERGreater variety to consumers
Disadvantage of Differentiated Marketing - ANSWERIncreased Costs
Example of Differentiated Marketing - ANSWERCoca-Cola
, Procedures of Segmentation - ANSWER1. Survey Stage
2. Analysis Stage
3. Profiling Stage
Survey Stage - ANSWERunderstand consumer motivations, attitudes, and behavior
Analysis Stage - ANSWERidentify consumer groups with similar characteristics
Profiling Stage - ANSWERProfile each group in terms of their attitudes, behavior,
demographics, psychographics and media habits
Factors affecting the feasibility of segmentation - ANSWERA marketing segment
must be: measurable, accessible, substantial, unique, appropriate, and stable
Bases for Segmentation - ANSWER•Geographic and geodemographic
•Demographic
•Behavioral
•Psychographic
Geographic - ANSWEROne of the easiest and most commonly used methods.
Markets are divided into groups based on region, climate, population density.
Geodemographic - ANSWERCombine geographic and demographic factors. Target
consumers in particular areas with similar behavior patterns - "Birds of a feather flock
together"
Demographic - ANSWERMarkets are divided using demographic variables such as
income, age, gender, educational attainment, occupation, religion, race, nationality,
family/household characteristics, etc.
Behavioral - ANSWERMarkets are divided based on behavioral measures such as
attitudes, knowledge, benefits sought, willingness to innovate, loyalty status, usage
rates, etc.
Benefit Segmentation - ANSWERBased on the benefits that consumers seek from a
product. Ex: Toothpaste segmentation based on benefits like teeth whitening, cavity
protection, etc.
Process of Positioning - ANSWER•Identifying the organization or brand's possible
competitive advantages
•Deciding on the ones to be emphasized
•Implementing the positioning concept
Confused Positioning - ANSWERconsumers are confused as to what the
organization stands for, maybe due to too many claims made by the company
Over-Positioning - ANSWERconsumers perceive the organization's products too
expensive and fail to recognize the full range of products
ANSWERS(GRADED A+)
Market Segmentation - ANSWERThe process of dividing consumers into groups with
similar consumer characteristics and product needs.
Concentrated (Target) Marketing - ANSWERFirms identify major market segments,
and then target a single segment with a single marketing mix.
Advantage of Concentrated Marketing - ANSWERConcentrated effort to that specific
segment; control cost to appeal only to that primary target segment.
Disadvantage of Concentrated Marketing - ANSWERPossibility of missed
opportunities; vulnerable to competition.
Example of Concentrated Marketing - ANSWERPiano Maker
Multiple Segmentation - ANSWERFirms target different segments with a unique
marketing mix for each segment.
Market Segmentation - ANSWERAllows managers to break the market into small
manageable groups, so that firms can tailor their offerings to satisfy different needs
and wants.
Three Marketing Strategies - ANSWERUndifferentiated (Mass Marketing),
Differentiated (Product-Variety), Concentrated (Target)
Undifferentiated (Mass Marketing) - ANSWERFirms sell a single product (with same
marketing approach) to all consumers.
Advantage to Undifferentiated Marketing - ANSWEREconomies of scale in
production, promotion, and distribution
Disadvantage to Undifferentiated Marketing - ANSWERIntense competition and
more sophisticated consumers
Example of Undifferentiated Marketing - ANSWERFord's Model T, Black & Decker
Differentiated (Product-Variety Marketing) - ANSWERFirms provide a wide variety of
differentiated offerings to different segments (sometimes to all consumers).
Advantage of Differentiated Marketing - ANSWERGreater variety to consumers
Disadvantage of Differentiated Marketing - ANSWERIncreased Costs
Example of Differentiated Marketing - ANSWERCoca-Cola
, Procedures of Segmentation - ANSWER1. Survey Stage
2. Analysis Stage
3. Profiling Stage
Survey Stage - ANSWERunderstand consumer motivations, attitudes, and behavior
Analysis Stage - ANSWERidentify consumer groups with similar characteristics
Profiling Stage - ANSWERProfile each group in terms of their attitudes, behavior,
demographics, psychographics and media habits
Factors affecting the feasibility of segmentation - ANSWERA marketing segment
must be: measurable, accessible, substantial, unique, appropriate, and stable
Bases for Segmentation - ANSWER•Geographic and geodemographic
•Demographic
•Behavioral
•Psychographic
Geographic - ANSWEROne of the easiest and most commonly used methods.
Markets are divided into groups based on region, climate, population density.
Geodemographic - ANSWERCombine geographic and demographic factors. Target
consumers in particular areas with similar behavior patterns - "Birds of a feather flock
together"
Demographic - ANSWERMarkets are divided using demographic variables such as
income, age, gender, educational attainment, occupation, religion, race, nationality,
family/household characteristics, etc.
Behavioral - ANSWERMarkets are divided based on behavioral measures such as
attitudes, knowledge, benefits sought, willingness to innovate, loyalty status, usage
rates, etc.
Benefit Segmentation - ANSWERBased on the benefits that consumers seek from a
product. Ex: Toothpaste segmentation based on benefits like teeth whitening, cavity
protection, etc.
Process of Positioning - ANSWER•Identifying the organization or brand's possible
competitive advantages
•Deciding on the ones to be emphasized
•Implementing the positioning concept
Confused Positioning - ANSWERconsumers are confused as to what the
organization stands for, maybe due to too many claims made by the company
Over-Positioning - ANSWERconsumers perceive the organization's products too
expensive and fail to recognize the full range of products
