Marketing 201 [Swenson] BYU Midterm 2 questions and solutions

Marketing 201 [Swenson] BYU Midterm 2 questions
and solutions
Market Segmentation - answersthe process of grouping customers into relatively homogeneous sets or groups.
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Customers within a segment are similar to one another in the way they respond to the marketing efforts directed
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toward them.
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Targeting - answersselecting one or more groups to sell to
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Positioning - answersdeveloping a unique selling position for the targeted group(s) and then delivering on it
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3 ways market segmentation benefits companies - answers1) Provides an effective means for reaching customer
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groups 2) Helps in allocating marketing resources 3) Identifies market opportunities for the company.
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Geographic segmentation - answersmarket divided based on differences in geographic regions, population
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density, population size, or climate.
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Demographic segmentation - answersmarket based on differences in age, gender, income, level of education,
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social class, family composition, religion, or ethnicity.
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Psychographic segmentation - answersbased on differences in personality, motives, or style. wu wu wu wu wu wu wu wu wu wu




Behavioral segmentation - answersmarket based on differences in the core benefits customers seek, usage
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situations, brand loyalty, usage rates, and price sensitivity.
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Brand loyal shoppers - answershave high brand sensitivity and low price sensitivity (pay as much as they need to
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purchase their favorite brands—Toothpaste, coffee, soda, cigarettes)
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Deal shoppers - answershave high brand sensitivity and high price sensitivity (purchase leading brands at a
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discount—Diapers, hand and body soap, pet food)
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Price shoppers - answershave low brand sensitivity and high price sensitivity (they purchase the lowest-price
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products regardless of brand—plastic food bags, frozen pizza, detergent)
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Convenience shoppers - answershave low brand sensitivity and low price sensitivity (buy products w/o regard to
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brand or price—energy drinks, junk food, over-the-counter meds)
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Five Main Characteristics of Good Segmentation Plans - answers1) measurable 2) accessible 3) durable 4)
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substantial 5) meets unique needs
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Measurable - answersIndividuals can be assigned to a specific segment, and the number of individuals in the
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segment can be counted.
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Accessible - answersIndividuals in the segment can be reached through the company's promotion and
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distribution channels.
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, Durable - answersSegment membership and size are relatively constant over time.
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Substantial - answersThe segment is large enough to make products profitable. wu wu wu wu wu wu wu wu wu wu




Meet Unique Needs - answersThe needs of or benefits sought by the segment membership are homogeneous
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within each segment and heterogeneous across the segments.
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Segmentation Basis - answersUsed to assign potential customers to different segments. wu wu wu wu wu wu wu wu wu wu




Segment profile - answersDescribe the demographic characteristics, geographic factors, attitudinal scores and
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behavioral tendencies of the segment members. The profile delineates the similarities among potential
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customers within the segment and explains the differences in potential customers between segments.
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Product positioning - answersThe act of designing the company's product offering so that it occupies a distinct and
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valued place in the target customers' minds.
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Me Too Marketing - answersOffering the same price for the same benefits; won't give consumers a reason to
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switch to your product.
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Unique Selling Proposition - answers1) make unique proposition to the customer 2) must be different from
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consumers 3) proposition must be so strong that it can pull new customers over to the product
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Perceptual Mapping - answersAllows researchers to view consumers' perceptions of brands on one or a series of
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spatial maps such that relationships between brands can be easily seen.
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Gap Analysis - answersCompares brands based on the importance and performance of their differentiating
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features and benefits.
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Hierarchical Values Analysis - answersAnother way to gain insight into product positioning by interviewing
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customers to discover their core motivations or beliefs behind purchasing decisions.
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Personal Relevance Bridge - answersThe emotional connection or the bridge between the product benefit and
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the personal benefit in Hierarchal Values Analysis.
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Product - answersA bundle of attributes that satisfies consumers' wants or needs.
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Competitive Angle - answersUnique or different from the current offerings, makes a positive personal connection
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with consumers, and, most importantly, lifts customers over a hurdle (reduce pain or increase fun) that other
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competitors in the market fail to do.
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Need to Believe - answersWhich significant pain point does the product address that is personally relevant to the
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target audience?
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Reason to Believe - answersHow effective is the demonstration of the product's problem-solving benefits in
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capturing the imagination of the target audience?
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Dominate Situations - answersWhich usage or buying situations does the product dominate in a way that delivers
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superior value?
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