Marketing 3340 Exam 2 Quiz Questions with Correct Answers, Rated A+

Market Segmentation - Aggregating consumers into groups that have similar needs and will be react similarly to a marketing action Product Differentiation - Involves the firm using different marketing mix actions such as product features and advertising, to help consumers perceive the product as being different and better than competing products Three market segmentation strategies - 1. One product and many segments 2.Multiple products in multiple segments 3. Mass customization Steps in segmenting and targeting markets - 1. Group potential buyers into segments 2. Group products to be sold into categories 3. Develop a market-product grid and estimate the size of markets 4. Select target markets 5. Take marketing actions to reach target markets Positioning - The perception of a product/brand and consumers mind relative to competitive products Criteria to use in forming the segments - Simplicity and cost-effectiveness of assigning potential buyers to segments, potential for increase profit, similarity of needs a potential buyers with in a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment Ways to segment consumer markets - Geographic segmentation, demographic segmentation, psychographic segmentation, behavioral segmentation Popular bases for positioning - 1. Attribute 2. Price and quality 3. Competition 4. Product user Repositioning - Changing the place an offering occupies in a consumers mind relative to competitive products Perceptual map - 1. Identify the important attributes for consumers 2. Discover how consumers see various competing products 3. Discover how consumer see your product 4. Reposition your product to make it more appealing to consumers Criteria to select target market - 1. Size of segment 2. Expected growth of segment 3. Competitive position 4. Cost of reaching the segment 5. Compatibility with the organizations objectives and resources Types of consumer products - 1. Convenience products 2. shopping products 3. specialty products 4. unsought products Convenience products - items that consumers purchase frequently, conveniently, and with a minimum shopping effort Shopping products - Items for which the consumer compares several alternatives on criteria such as price, quality, or style Specialty product - Items that the consumer make a special effort to search out and buy Unsought products - Items that the consumer does not know about or knows about but does not initially want Classification of consumer goods - 1. Effort spent on the purchase decision 2. Frequency of purchase 3. Brand loyalty and acceptance of substitutes