Marketing 201 - Midterm 2 Questions and Answers

Marketing 201 - Midterm 2 Questions
and Answers

Segmentation ✅✅Diving a market into separate groups (ask "who could we exchange


with?")




Geographic Segmentation ✅✅Based on differences in geographic regions, population


density, population size, or climate


(LEAST ACCURATE, LEAST EXPENSIVE)




Demographic Segmentation ✅✅Based on differences in age, gender, income, level of


education, social class, family composition, religion, or ethnicity




Psychographic Segmentation ✅✅Based on differences in personality, motives, or lifestyle




Behavioral Segmentation ✅✅Based on benefits and usage situations


(MOST ACCURATE, MOST EXPENSIVE)

,Types of Behavioral Segmentation ✅✅Brand-loyal shoppers - high brand sensitivity, low


price sensitivity


Deal shoppers - high brand sensitivity, high price sensitivity


Price shoppers - low brand sensitivity, high price sensitivity


Convenience shoppers - low brand sensitivity, low price sensitivity




5 characteristics of a good segmentation plan ✅✅*Measurable* - individuals can be


assigned a segment and counted


*Accessible* - individuals in segment can be reached


*Durable* - membership is constant


*Substantial* - segment is large enough for profit


*Unique needs* - needs are homogeneous in segments and hetero across segments




Segmentation Matrix ✅✅Differentiates a type of product by different characteristics and


compares them

, Person by situation matrix ✅✅




Criteria for selecting segments ✅✅Market size


Expected growth


Competitive position


Cost to reach


Maximize company profit




Positioning ✅✅Developing a unique selling prop for the targeted groups and delivering on


it




Choosing a value positioning strategy ✅✅Green = good, yellow = okay, red = avoid




Unique Selling Proposition (USP) ✅✅Strategy of differentiating a product by


communicating its unique attributes