Marketing 301 Exam 2 (Complete solutions)

What are the major steps in designing a customer driven marketing strategy? correct answers 1. Market segmentation 2. Targeting 3. Differentiation 4. Positioning Market Segmentation correct answers Dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviors that require separate marketing strategies or mixes Targeting correct answers The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Differentiation correct answers Differentiating the market to create superior customer value Positioning correct answers Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers Types of Segmentation correct answers 1. Geographic (Nations, regions, urban/rural etc) 2. Demographic (Age, gender, income, ethnicity) 3. Psychographic (social class, lifestyle, personality) 4. Behavioral (occasions, benefits, user status, usage rate, loyalty status) Occasion Segmentation correct answers ex. Easter M&M's Benefit Segmentation (Benefits Sought) correct answers ex. 4 types of Gillette razors, each with different benefit 1. Venus embrace: for those who want the perfect shave 2. Venus Breeze: gets job done easily 3. Venus Divine: Moisturizes skin in the process 4. Simply Venus: most affordable Segmenting Business Markets correct answers Same as segmenting consumers, but with businesses instead; Think how GE has different business- Utilities, financial services, oil & gas etc Segmenting International Markets correct answers Segmenting countries by geographic location, economic factors, political factors, cultural factors etc Requirements for Effective Segmentation (MASDA) correct answers Market segments must be: -Measurable -Accessible -Substantial