MKT 305 Exam queries and answers
graded A+
Generic Markets - ANS✅✅a market with broadly similar needs and sellers offering various, often
diverse, ways of satisfying those needs
Product Markets - ANS✅✅a market with very similar needs and sellers offering various
close substitute ways of satisfying those needs.
• Broaden market definitions to find opportunities
Market Segmentation - ANS✅✅-a two-step process of (1) naming broad product-markets
and (2) segmenting those broad product-markets in order to select target markets
and develop suitable marketing mixes.
How to segment product-markets into submarkets - ANS✅✅• Naming broad product-markets is
disaggregating
• Market grid is a visual aid to market segmentation
• Segmenting is an aggregating process
SEGMENTING--an aggregating process—clustering people with similar needs into a
"market segment."
MARKET SEGMENT--a (relatively) homogeneous group of customers who will
respond to a marketing mix in a similar way.
(Exhibit 4-5) "Every Individual Has His or Her Own Unique Position in a Market—
Those with Similar Positions Can be Aggregated into Potential Target Markets"
• How far should the aggregating go?
• Criteria for segmenting a broad product-market
Three approaches to market-oriented strategy planning - ANS✅✅SINGLE TARGET MARKET
APPROACH--segmenting the market and picking one of the
homogeneous segments as the firm's target market.
MULTIPLE TARGET MARKET APPROACH--segmenting the market and choosing two
or more segments, and then treating each as a separate target market needing a
,different marketing mix.
COMBINED TARGET MARKET APPROACH--combining two or more submarkets into
one larger target market as a basis for one strategy.
Dimensions that may be useful for segmenting markets - ANS✅✅QUALIFYING DIMENSIONS--those
relevant to including a customer type in a productmarket.
DETERMINING DIMENSIONS--those that actually affect the customer's purchase of a
specific product or brand in a product-market.
• Determining dimensions may be very specific
(Exhibit 4-10) "Finding the Relevant Segmenting Dimensions"
• Qualifying dimensions are important too
• Different dimensions needed for different submarkets
• Personas give segments life
• International marketing requires even more segmenting
• Smart segmenters win in international markets
• Ethical issues in selecting segmenting dimensions
How some computer-aided methods are used in segmenting - ANS✅✅Clustering usually requires a
computer
CLUSTERING TECHNIQUES--approaches used to try to find similar patterns within sets of data.
Marketing Analytics in Action: Cluster Analysis
• A customer database can focus the effort
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)--an approach where the seller fine-tunes the
marketing effort with information from a detailed customer database. What's Next? Target Reads its
Customers' Minds
• Targeting a segment of one
• Smartphones help target customers by current location
What positioning is and why it is useful - ANS✅✅POSITIONING--refers to how customers think
about proposed or present brands in a market. • Differentiate the marketing mix—to serve
customers better
• Positioning is based on customers' views
, Market - ANS✅✅a group of potential customers with similar needs who are willing to exchange
something of value with sellers offering various goods or services
single target market approach - ANS✅✅segmenting the market and picking one of the
homogeneous segments as the firm's target market
multiple target market approach - ANS✅✅segmenting the market and choosing two or more
segments, and then treating each as a separate target market needing a different marketing mix
combined target market approach - ANS✅✅combining two or more submarkets into one larger
target market as a basis for one strategy
Combiners - ANS✅✅firms that try to increase the size of their target markets by combining two or
more segments
Segmenters - ANS✅✅aim at one or more homogeneous segments and try to develop a different
marketing mix for each segment
Qualifying dimensions - ANS✅✅those relevant to including a customer type in a product-market
determining dimensions - ANS✅✅those that actually affect the customer's purchase of a specific
product or brand in a product-market
clustering techniques - ANS✅✅approaches used to try to find similar patterns within sets of data
Customer Relationship Management (CRM) - ANS✅✅an approach where the seller fine-tunes the
marketing effort with information from a detailed customer database
Positioning - ANS✅✅-refers to how customers think about proposed or present brands in a market
Positioning Statement - ANS✅✅concisely identifies the firm's desired target market
how economic needs influence the buyer decision process - ANS✅✅ECONOMIC NEEDS AFFECT
MOST BUYING DECISIONS
graded A+
Generic Markets - ANS✅✅a market with broadly similar needs and sellers offering various, often
diverse, ways of satisfying those needs
Product Markets - ANS✅✅a market with very similar needs and sellers offering various
close substitute ways of satisfying those needs.
• Broaden market definitions to find opportunities
Market Segmentation - ANS✅✅-a two-step process of (1) naming broad product-markets
and (2) segmenting those broad product-markets in order to select target markets
and develop suitable marketing mixes.
How to segment product-markets into submarkets - ANS✅✅• Naming broad product-markets is
disaggregating
• Market grid is a visual aid to market segmentation
• Segmenting is an aggregating process
SEGMENTING--an aggregating process—clustering people with similar needs into a
"market segment."
MARKET SEGMENT--a (relatively) homogeneous group of customers who will
respond to a marketing mix in a similar way.
(Exhibit 4-5) "Every Individual Has His or Her Own Unique Position in a Market—
Those with Similar Positions Can be Aggregated into Potential Target Markets"
• How far should the aggregating go?
• Criteria for segmenting a broad product-market
Three approaches to market-oriented strategy planning - ANS✅✅SINGLE TARGET MARKET
APPROACH--segmenting the market and picking one of the
homogeneous segments as the firm's target market.
MULTIPLE TARGET MARKET APPROACH--segmenting the market and choosing two
or more segments, and then treating each as a separate target market needing a
,different marketing mix.
COMBINED TARGET MARKET APPROACH--combining two or more submarkets into
one larger target market as a basis for one strategy.
Dimensions that may be useful for segmenting markets - ANS✅✅QUALIFYING DIMENSIONS--those
relevant to including a customer type in a productmarket.
DETERMINING DIMENSIONS--those that actually affect the customer's purchase of a
specific product or brand in a product-market.
• Determining dimensions may be very specific
(Exhibit 4-10) "Finding the Relevant Segmenting Dimensions"
• Qualifying dimensions are important too
• Different dimensions needed for different submarkets
• Personas give segments life
• International marketing requires even more segmenting
• Smart segmenters win in international markets
• Ethical issues in selecting segmenting dimensions
How some computer-aided methods are used in segmenting - ANS✅✅Clustering usually requires a
computer
CLUSTERING TECHNIQUES--approaches used to try to find similar patterns within sets of data.
Marketing Analytics in Action: Cluster Analysis
• A customer database can focus the effort
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)--an approach where the seller fine-tunes the
marketing effort with information from a detailed customer database. What's Next? Target Reads its
Customers' Minds
• Targeting a segment of one
• Smartphones help target customers by current location
What positioning is and why it is useful - ANS✅✅POSITIONING--refers to how customers think
about proposed or present brands in a market. • Differentiate the marketing mix—to serve
customers better
• Positioning is based on customers' views
, Market - ANS✅✅a group of potential customers with similar needs who are willing to exchange
something of value with sellers offering various goods or services
single target market approach - ANS✅✅segmenting the market and picking one of the
homogeneous segments as the firm's target market
multiple target market approach - ANS✅✅segmenting the market and choosing two or more
segments, and then treating each as a separate target market needing a different marketing mix
combined target market approach - ANS✅✅combining two or more submarkets into one larger
target market as a basis for one strategy
Combiners - ANS✅✅firms that try to increase the size of their target markets by combining two or
more segments
Segmenters - ANS✅✅aim at one or more homogeneous segments and try to develop a different
marketing mix for each segment
Qualifying dimensions - ANS✅✅those relevant to including a customer type in a product-market
determining dimensions - ANS✅✅those that actually affect the customer's purchase of a specific
product or brand in a product-market
clustering techniques - ANS✅✅approaches used to try to find similar patterns within sets of data
Customer Relationship Management (CRM) - ANS✅✅an approach where the seller fine-tunes the
marketing effort with information from a detailed customer database
Positioning - ANS✅✅-refers to how customers think about proposed or present brands in a market
Positioning Statement - ANS✅✅concisely identifies the firm's desired target market
how economic needs influence the buyer decision process - ANS✅✅ECONOMIC NEEDS AFFECT
MOST BUYING DECISIONS
