SI CHEN EXAM 3 MBA 706 TESTED
QUESTIONS AND COMPLETE SOLUTIONS
◉ Market Segmentation
Answer: Allows 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
Answer: Undifferentiated (Mass Marketing), Differentiated
(Product-Variety), Concentrated (Target)
◉ Undifferentiated (Mass Marketing)
Answer: Firms sell a single product (with same marketing
approach) to all consumers.
◉ Advantage to Undifferentiated Marketing
Answer: Economies of scale in production, promotion, and
distribution
◉ Disadvantage to Undifferentiated Marketing
Answer: Intense competition and more sophisticated consumers
◉ Example of Undifferentiated Marketing
,Answer: Ford's Model T, Black & Decker
◉ Differentiated (Product-Variety Marketing)
Answer: Firms provide a wide variety of differentiated offerings to
different segments (sometimes to all consumers).
◉ Advantage of Differentiated Marketing
Answer: Greater variety to consumers
◉ Disadvantage of Differentiated Marketing
Answer: Increased Costs
◉ Example of Differentiated Marketing
Answer: Coca-Cola
◉ Concentrated (Target) Marketing
Answer: Firms identify major market segments, and then target a
single segment with a single marketing mix.
◉ Advantage of Concentrated Marketing
Answer: Concentrated effort to that specific segment; control cost
to appeal only to that primary target segment.
◉ Disadvantage of Concentrated Marketing
, Answer: Possibility of missed opportunities; vulnerable to
competition.
◉ Example of Concentrated Marketing
Answer: Piano Maker
◉ Multiple Segmentation
Answer: Firms target different segments with a unique marketing
mix for each segment.
◉ Procedures of Segmentation
Answer: 1. Survey Stage
2. Analysis Stage
3. Profiling Stage
◉ Survey Stage
Answer: understand consumer motivations, attitudes, and
behavior
◉ Analysis Stage
Answer: identify consumer groups with similar characteristics
◉ Profiling Stage
QUESTIONS AND COMPLETE SOLUTIONS
◉ Market Segmentation
Answer: Allows 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
Answer: Undifferentiated (Mass Marketing), Differentiated
(Product-Variety), Concentrated (Target)
◉ Undifferentiated (Mass Marketing)
Answer: Firms sell a single product (with same marketing
approach) to all consumers.
◉ Advantage to Undifferentiated Marketing
Answer: Economies of scale in production, promotion, and
distribution
◉ Disadvantage to Undifferentiated Marketing
Answer: Intense competition and more sophisticated consumers
◉ Example of Undifferentiated Marketing
,Answer: Ford's Model T, Black & Decker
◉ Differentiated (Product-Variety Marketing)
Answer: Firms provide a wide variety of differentiated offerings to
different segments (sometimes to all consumers).
◉ Advantage of Differentiated Marketing
Answer: Greater variety to consumers
◉ Disadvantage of Differentiated Marketing
Answer: Increased Costs
◉ Example of Differentiated Marketing
Answer: Coca-Cola
◉ Concentrated (Target) Marketing
Answer: Firms identify major market segments, and then target a
single segment with a single marketing mix.
◉ Advantage of Concentrated Marketing
Answer: Concentrated effort to that specific segment; control cost
to appeal only to that primary target segment.
◉ Disadvantage of Concentrated Marketing
, Answer: Possibility of missed opportunities; vulnerable to
competition.
◉ Example of Concentrated Marketing
Answer: Piano Maker
◉ Multiple Segmentation
Answer: Firms target different segments with a unique marketing
mix for each segment.
◉ Procedures of Segmentation
Answer: 1. Survey Stage
2. Analysis Stage
3. Profiling Stage
◉ Survey Stage
Answer: understand consumer motivations, attitudes, and
behavior
◉ Analysis Stage
Answer: identify consumer groups with similar characteristics
◉ Profiling Stage
