MARK 301 Final Exam
4 Parts of Defining a Customer-Driven Marketing Strategy -correct answer_Segmentation,
Targeting, Differentiation, Positioning Segmentation -correct answer_Dividing a market into
distinct groups of buyers who have different needs, characteristics, or behaviors, and who
might require separate marketing strategies or mixes. Targeting -correct answer_The process
of evaluating each market segment's attractiveness and selecting one or more segments to
enter. Differentiation -correct answer_Actually differentiating the market offering to create
superior customer value. Positioning -correct answer_arranging for a market offering to occupy
a clear, distinctive, and desirable place relative to competing products in the minds of target
consumers. Geographic Segmentation -correct answer_Dividing a market into different
geographical units, such as global regions, countries, regions within a country, provinces,
cities or even neighbourhoods. Demographic Segmentation -correct answer_divides the
market into segments based on variables such as age, gender, family size, life cycle,
household income, occupation, ethnic or cultural group, education, and generation. Age and
Life Cycle Segmentation -correct answer_dividing a market into different age and lifecycle
groups Gender Segmentation -correct answer_dividing the market into different segments
based on gender. Example of Age and Life Cycle Segmentation -correct answer_Disney
Cruises Household Income (HHI) segmentation -correct answer_dividing a market into
different income segments. Example of HHI segmentation -correct answer_No Frills, Giant
Tiger Psychographic Segmentation -correct answer_dividing a market into different segments
based on social class, lifestyle, or personality characteristics. Example of psychographic
segmentation -correct answer_Mountain Dew projects a youthful, rebellious, adventurous,
go-your-own-way personality. Behavioural Segmentation -correct answer_dividing a market
into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Occasion Segmentation -correct answer_dividing the market into segments according to
occasions when buyers get the idea to buy, actually make their purchase, or use the
purchased item. Example of occasion segmentation -correct answer_tools and ties for Father's
Day Benefit Segmentation -correct answer_dividing the market into segments according to the
different benefits that consumers seek from the product. Example of benefit segmentation
-correct answer_Trek Bicycle Corporation promoting road bikes, mountain bikes, and town
bikes; you see the benefits that you get from each type of bike. "80/20 Rule" -correct
answer_80% of sales come from 20% of customers The Nielsen Company's PRIZM -correct
answer_classifies segments based on demographic, behavioural, and lifestyle factors; most
companies use multiple segmentation bases in an effort to identify smaller, better-defined
target groups. Segmenting Business Markets -correct answer_operating characteristics,
purchasing approaches, situational factors, and personal characteristics. What is the best
basis for segmenting markets? -correct answer_Buying behaviour and benefits. Segmenting
International Markets -correct answer_geographic location, economic factors, political and
legal factors, cultural factors Intermarket (cross-market) segmentation -correct
, answer_forming segments of consumers who have similar needs and buying behaviours even
though they are located in different countries. Requirements for Effective Segmentation
-correct answer_Measurable, accessible, substantial, differentiable, actionable. 5 Forces to
Evaluate Market Segments -correct answer_competitors, new entrants, substitute products,
power of buyers, power of suppliers. Target Market -correct answer_a set of buyers sharing
common needs or characteristics that the company decides to serve. Undifferentiated (mass)
marketing -correct answer_a market-coverage strategy in which a firm decides to ignore
market segment differences and go after the whole market with one offer Differentiated
(segmented) marketing -correct answer_A market-coverage strategy in which a firm decides to
target several market segments and designs separate offers for each; ex. Hallmark
Concentrated (niche) marketing -correct answer_A market-coverage strategy in which a firm
goes after a large share of one or a few segments or niches; ex. Sabian Cymbals.
Micromarketing -correct answer_the practice of tailoring products and marketing programs to
the needs and wants of specific individuals and local customer segments -- includes local
marketing and individual marketing Local Marketing -correct answer_A small group of people
who live in the same city or neighbourhood or who shop at the same store. Individual
Marketing (mass customization) -correct answer_tailoring products and marketing programs to
the needs and preferences of individual customers; ex. designing your own Harley Davidson
choosing a target strategy -correct answer_Factors to consider: company resources, product
variability, product's lifecycle stage, market variability, and competitors' marketing strategies.
Socially Responsible Target Marketing -correct answer_Controversy and concern of target
marketing Vulnerable or disadvantaged consumers are targeted with controversial or
potentially harmful products. Should be done to serve the interests of the company and the
interests of those targeted Product Position -correct answer_the way a product is defined by
consumers on important attributes -- the place the product occupies in consumers' minds
relative to competing products. Perceptual Positioning Maps -correct answer_shows consumer
perceptions of their brands versus competing products on important buying decisions;
measure against price and orientation Choosing a Differentiation and Positioning Strategy
-correct answer_identify a set of differentiating competitive advantages upon which to build a
position, choosing the right competitive advantages, and selecting an overall positioning
strategy. Competitive Advantage -correct answer_An advantage over competitors gained by
offering greater customer value, either through lower prices or by providing more benefits that
justify higher prices. What do you differentiation along? -correct answer_Product, service,
channels, people, image USP -correct answer_Unique selling proposition Which differences to
promote -correct answer_important, distinctive, superior, communicable, pre-emptive,
affordable, profitable. Value Proposition -correct answer_the full positioning of a brand -- the
full mix of benefits upon which it is positioned. Possible value propositions -correct
answer_more for more, more for the same, the same for less, less for much less, more for less.
Positioning Statement -correct answer_A statement that summarizes company or brand
positioning; "To (target segment and need) our (brand) is (concept) that (point of difference).
4 Parts of Defining a Customer-Driven Marketing Strategy -correct answer_Segmentation,
Targeting, Differentiation, Positioning Segmentation -correct answer_Dividing a market into
distinct groups of buyers who have different needs, characteristics, or behaviors, and who
might require separate marketing strategies or mixes. Targeting -correct answer_The process
of evaluating each market segment's attractiveness and selecting one or more segments to
enter. Differentiation -correct answer_Actually differentiating the market offering to create
superior customer value. Positioning -correct answer_arranging for a market offering to occupy
a clear, distinctive, and desirable place relative to competing products in the minds of target
consumers. Geographic Segmentation -correct answer_Dividing a market into different
geographical units, such as global regions, countries, regions within a country, provinces,
cities or even neighbourhoods. Demographic Segmentation -correct answer_divides the
market into segments based on variables such as age, gender, family size, life cycle,
household income, occupation, ethnic or cultural group, education, and generation. Age and
Life Cycle Segmentation -correct answer_dividing a market into different age and lifecycle
groups Gender Segmentation -correct answer_dividing the market into different segments
based on gender. Example of Age and Life Cycle Segmentation -correct answer_Disney
Cruises Household Income (HHI) segmentation -correct answer_dividing a market into
different income segments. Example of HHI segmentation -correct answer_No Frills, Giant
Tiger Psychographic Segmentation -correct answer_dividing a market into different segments
based on social class, lifestyle, or personality characteristics. Example of psychographic
segmentation -correct answer_Mountain Dew projects a youthful, rebellious, adventurous,
go-your-own-way personality. Behavioural Segmentation -correct answer_dividing a market
into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Occasion Segmentation -correct answer_dividing the market into segments according to
occasions when buyers get the idea to buy, actually make their purchase, or use the
purchased item. Example of occasion segmentation -correct answer_tools and ties for Father's
Day Benefit Segmentation -correct answer_dividing the market into segments according to the
different benefits that consumers seek from the product. Example of benefit segmentation
-correct answer_Trek Bicycle Corporation promoting road bikes, mountain bikes, and town
bikes; you see the benefits that you get from each type of bike. "80/20 Rule" -correct
answer_80% of sales come from 20% of customers The Nielsen Company's PRIZM -correct
answer_classifies segments based on demographic, behavioural, and lifestyle factors; most
companies use multiple segmentation bases in an effort to identify smaller, better-defined
target groups. Segmenting Business Markets -correct answer_operating characteristics,
purchasing approaches, situational factors, and personal characteristics. What is the best
basis for segmenting markets? -correct answer_Buying behaviour and benefits. Segmenting
International Markets -correct answer_geographic location, economic factors, political and
legal factors, cultural factors Intermarket (cross-market) segmentation -correct
, answer_forming segments of consumers who have similar needs and buying behaviours even
though they are located in different countries. Requirements for Effective Segmentation
-correct answer_Measurable, accessible, substantial, differentiable, actionable. 5 Forces to
Evaluate Market Segments -correct answer_competitors, new entrants, substitute products,
power of buyers, power of suppliers. Target Market -correct answer_a set of buyers sharing
common needs or characteristics that the company decides to serve. Undifferentiated (mass)
marketing -correct answer_a market-coverage strategy in which a firm decides to ignore
market segment differences and go after the whole market with one offer Differentiated
(segmented) marketing -correct answer_A market-coverage strategy in which a firm decides to
target several market segments and designs separate offers for each; ex. Hallmark
Concentrated (niche) marketing -correct answer_A market-coverage strategy in which a firm
goes after a large share of one or a few segments or niches; ex. Sabian Cymbals.
Micromarketing -correct answer_the practice of tailoring products and marketing programs to
the needs and wants of specific individuals and local customer segments -- includes local
marketing and individual marketing Local Marketing -correct answer_A small group of people
who live in the same city or neighbourhood or who shop at the same store. Individual
Marketing (mass customization) -correct answer_tailoring products and marketing programs to
the needs and preferences of individual customers; ex. designing your own Harley Davidson
choosing a target strategy -correct answer_Factors to consider: company resources, product
variability, product's lifecycle stage, market variability, and competitors' marketing strategies.
Socially Responsible Target Marketing -correct answer_Controversy and concern of target
marketing Vulnerable or disadvantaged consumers are targeted with controversial or
potentially harmful products. Should be done to serve the interests of the company and the
interests of those targeted Product Position -correct answer_the way a product is defined by
consumers on important attributes -- the place the product occupies in consumers' minds
relative to competing products. Perceptual Positioning Maps -correct answer_shows consumer
perceptions of their brands versus competing products on important buying decisions;
measure against price and orientation Choosing a Differentiation and Positioning Strategy
-correct answer_identify a set of differentiating competitive advantages upon which to build a
position, choosing the right competitive advantages, and selecting an overall positioning
strategy. Competitive Advantage -correct answer_An advantage over competitors gained by
offering greater customer value, either through lower prices or by providing more benefits that
justify higher prices. What do you differentiation along? -correct answer_Product, service,
channels, people, image USP -correct answer_Unique selling proposition Which differences to
promote -correct answer_important, distinctive, superior, communicable, pre-emptive,
affordable, profitable. Value Proposition -correct answer_the full positioning of a brand -- the
full mix of benefits upon which it is positioned. Possible value propositions -correct
answer_more for more, more for the same, the same for less, less for much less, more for less.
Positioning Statement -correct answer_A statement that summarizes company or brand
positioning; "To (target segment and need) our (brand) is (concept) that (point of difference).
