COB 300 MARKETING TEST 1
QUESTIONS AND ANSWERS
Segmentation Process - Answer-Current and potential needs/wants, distinguishing
characteristics, forecast demand
Segmentation methods - Answer-geographic, demographic, psychographic, benefits,
behavioral
Geographic Segmentation - Answer--Value by region
-Market size
-Customer convenience
-Population shifts
-culture
Demographic Segmentation - Answer--Most common
-Age
-Gender (shifts)
-Income
Psychographic Segmentation - Answer--How do customers describe themselves?
-What determines their choice?
-different reasons for buying the same product
Vals - Answer-popular psychographic method in consumer research that divides
consumers into groups based on resources and consumer behavior motivations
geodemographic segmentation - Answer-segmenting potential customers into
neighborhood lifestyle categories
Benefit segmentation - Answer-dividing the market into segments according to the
different benefits that consumers seek from the product
Segment Attractivness - Answer--Identifiable
-Substantial
-Reachable
-Responsiveness
-Profitable
Segment profitability - Answer-(segment size x segment adoption percentage x
purchase behavior x profit margin percentage) - fixed costs
Profit Margin Percentage - Answer-(selling price - variable costs) / selling price
, Segmentation Strategy - Answer-differentiated, concentrated, micromarketing or one-to-
one, undifferentiated or mass marketing
Positioning methods/basis - Answer--Value
-Salient attributes
-Symbol
-Competition
Variables fro segmenting B2B markets - Answer--Geographic Location
-Type of Organization
-Customer Size
-Product use
-Departmental/Unit Use
Develop Positioning strategy - Answer-involves the process of defining the marketing
mix variables so that target customers have a clear, distinctive, desirable understanding
of what the product does or represents in comparison with competing products
value proposition - Answer--[brand] provides [Target audience] with [unique value]
-Than any other [Your industry] by [proof points]
-What you offer and what customer wants (basket of benefits)
Customer value - Answer-= Benefit - cost
Company Profit - Answer-Revenue - cost
Revenue - Answer-Price x units sold
Price Important - Answer--the cost component of value
-signal of quality
-only 4P that makes rather than take money
The 5 C's of Pricing - Answer-competition,
costs,
company objectives, customers,
channel members
Company Objectives - Answer-profit oriented, sales oriented, competitor oriented,
customer oriented
Profit orientation - Answer-focusing on target profit pricing, maximizing profits, or target
return pricing
Sales Orientation - Answer--Focus on increasing sales
-Does not always imply setting low prices
-More concerned with overall market share
QUESTIONS AND ANSWERS
Segmentation Process - Answer-Current and potential needs/wants, distinguishing
characteristics, forecast demand
Segmentation methods - Answer-geographic, demographic, psychographic, benefits,
behavioral
Geographic Segmentation - Answer--Value by region
-Market size
-Customer convenience
-Population shifts
-culture
Demographic Segmentation - Answer--Most common
-Age
-Gender (shifts)
-Income
Psychographic Segmentation - Answer--How do customers describe themselves?
-What determines their choice?
-different reasons for buying the same product
Vals - Answer-popular psychographic method in consumer research that divides
consumers into groups based on resources and consumer behavior motivations
geodemographic segmentation - Answer-segmenting potential customers into
neighborhood lifestyle categories
Benefit segmentation - Answer-dividing the market into segments according to the
different benefits that consumers seek from the product
Segment Attractivness - Answer--Identifiable
-Substantial
-Reachable
-Responsiveness
-Profitable
Segment profitability - Answer-(segment size x segment adoption percentage x
purchase behavior x profit margin percentage) - fixed costs
Profit Margin Percentage - Answer-(selling price - variable costs) / selling price
, Segmentation Strategy - Answer-differentiated, concentrated, micromarketing or one-to-
one, undifferentiated or mass marketing
Positioning methods/basis - Answer--Value
-Salient attributes
-Symbol
-Competition
Variables fro segmenting B2B markets - Answer--Geographic Location
-Type of Organization
-Customer Size
-Product use
-Departmental/Unit Use
Develop Positioning strategy - Answer-involves the process of defining the marketing
mix variables so that target customers have a clear, distinctive, desirable understanding
of what the product does or represents in comparison with competing products
value proposition - Answer--[brand] provides [Target audience] with [unique value]
-Than any other [Your industry] by [proof points]
-What you offer and what customer wants (basket of benefits)
Customer value - Answer-= Benefit - cost
Company Profit - Answer-Revenue - cost
Revenue - Answer-Price x units sold
Price Important - Answer--the cost component of value
-signal of quality
-only 4P that makes rather than take money
The 5 C's of Pricing - Answer-competition,
costs,
company objectives, customers,
channel members
Company Objectives - Answer-profit oriented, sales oriented, competitor oriented,
customer oriented
Profit orientation - Answer-focusing on target profit pricing, maximizing profits, or target
return pricing
Sales Orientation - Answer--Focus on increasing sales
-Does not always imply setting low prices
-More concerned with overall market share
