MBA 706 EXAM 2- KOKSAL
QUESTIONS & ANSWERS(GRADED A+)
Market Segmentation - ANSWERThe process of dividing consumers into groups with
similar wants and needs
undifferentiated marketing - ANSWERA company targets all consumers with a single
offering instead of segmenting
differentiated marketing - ANSWERcompany targets different segments using
different marketing mixes
concentrated marketing - ANSWERcompany targets a single segment
A Market segment must be: - ANSWERMeasurable
Accessible
Substantial
Unique
Appropriate
Stable
The Bases (Types) of Segmentation - ANSWERGeographic
Geodemographic
Demographic
Behavioral
Psychographic and lifestyle
geographic segmentation - ANSWERmarkets are divided into different geographic
units (countries/regions/cities). One of the easier methods
demographic segmentation - ANSWERMarkets are divided into groups using
demographic variables (age/sex/education/etc.)
Behavioral Segmentation - ANSWERmarkets are divided into groups based on
behavioral measures (attitudes, knowledge, loyalty, benefits sought, etc)
benefit segmentation - ANSWERsegmenting consumers based on what benefits
they seek (example: style vs comfort)
User Status - ANSWERSegmenting consumers based on user status (users, non-
users, potential users)
confused positioning - ANSWERleaving buyers with a confused image of a company
over positioning - ANSWERconsumers see company's products as to expensive and
fail too see full range of products
, Under positioning - ANSWERcompany fails to communicate its positioning clearly
and therefore the company's position for the consumer is vague
Repositioning - ANSWERchanging the position of a company through 4 strategies:
Gradual repositioning
Radical Repositioning
Innovative Repositioning
Zero positioning
loyalty status - ANSWERsegmenting based on brand loyalty
Psychographic and lifestyle segmentation - ANSWERSegmenting markets based on
personalities, values, lifestyles, etc
Market Targeting - ANSWERDeciding which segments should be approached based
on:
Size and growth potential of segments
Attractiveness of segments
Organization's objectives and resources
single segment concentration - ANSWERCompany focuses on a single segment
(can be risky)
Selective specialization - ANSWERFocusing on several segments (reduces risk
associated w/ sing seg. concentration)
Product specialization - ANSWERCompany specializes in a particular product type
and markets it to different segments
market specialization - ANSWERcompany focuses on a segment and satisfies its
needs with various products
Full Market Coverage - ANSWERCompany targets all (most) segments with all the
products they need
Product positioning - ANSWERDesigning an image based on using various
marketing mixes
What place does the product occupy in the market.
How is the product different from actual/potential competitors?
Process of positioning - ANSWERchoosing the possible competitive advantages to
emphasize and implementing the positioning concept
Failed communication can lead to - ANSWERConfused Positioning
Over-Positioning
Under Positioning
Gradual Repositioning - ANSWERPlanned and continuous adaptation to the market
QUESTIONS & ANSWERS(GRADED A+)
Market Segmentation - ANSWERThe process of dividing consumers into groups with
similar wants and needs
undifferentiated marketing - ANSWERA company targets all consumers with a single
offering instead of segmenting
differentiated marketing - ANSWERcompany targets different segments using
different marketing mixes
concentrated marketing - ANSWERcompany targets a single segment
A Market segment must be: - ANSWERMeasurable
Accessible
Substantial
Unique
Appropriate
Stable
The Bases (Types) of Segmentation - ANSWERGeographic
Geodemographic
Demographic
Behavioral
Psychographic and lifestyle
geographic segmentation - ANSWERmarkets are divided into different geographic
units (countries/regions/cities). One of the easier methods
demographic segmentation - ANSWERMarkets are divided into groups using
demographic variables (age/sex/education/etc.)
Behavioral Segmentation - ANSWERmarkets are divided into groups based on
behavioral measures (attitudes, knowledge, loyalty, benefits sought, etc)
benefit segmentation - ANSWERsegmenting consumers based on what benefits
they seek (example: style vs comfort)
User Status - ANSWERSegmenting consumers based on user status (users, non-
users, potential users)
confused positioning - ANSWERleaving buyers with a confused image of a company
over positioning - ANSWERconsumers see company's products as to expensive and
fail too see full range of products
, Under positioning - ANSWERcompany fails to communicate its positioning clearly
and therefore the company's position for the consumer is vague
Repositioning - ANSWERchanging the position of a company through 4 strategies:
Gradual repositioning
Radical Repositioning
Innovative Repositioning
Zero positioning
loyalty status - ANSWERsegmenting based on brand loyalty
Psychographic and lifestyle segmentation - ANSWERSegmenting markets based on
personalities, values, lifestyles, etc
Market Targeting - ANSWERDeciding which segments should be approached based
on:
Size and growth potential of segments
Attractiveness of segments
Organization's objectives and resources
single segment concentration - ANSWERCompany focuses on a single segment
(can be risky)
Selective specialization - ANSWERFocusing on several segments (reduces risk
associated w/ sing seg. concentration)
Product specialization - ANSWERCompany specializes in a particular product type
and markets it to different segments
market specialization - ANSWERcompany focuses on a segment and satisfies its
needs with various products
Full Market Coverage - ANSWERCompany targets all (most) segments with all the
products they need
Product positioning - ANSWERDesigning an image based on using various
marketing mixes
What place does the product occupy in the market.
How is the product different from actual/potential competitors?
Process of positioning - ANSWERchoosing the possible competitive advantages to
emphasize and implementing the positioning concept
Failed communication can lead to - ANSWERConfused Positioning
Over-Positioning
Under Positioning
Gradual Repositioning - ANSWERPlanned and continuous adaptation to the market
