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Segmenting Targeting and Positioning Concepts
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Segmenting Targeting and Positioning Concepts
Segmenting Targeting and Positioning Concepts
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1
Question
What are the learning objectives of Lecture 4 on Segmenting, Targeting, and Positioning?
Answer
1. Describe what type of segmentation strategy a firm should use. 2. Determine the best method of segmenting a market. 3. Determine whether a segment is attractive to a firm and therefore worth pursuing. 4. Understand positioning and how firms use it.
2
Question
What are the components of the situation analysis in marketing?
Answer
Customers, Company, Competitors, External Market Environment.
3
Question
What are the elements of the marketing mix in relation to segmentation and targeting?
Answer
Product, Place, Promotion, Price.
4
Question
What does market segmentation involve?
Answer
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
5
Question
What is a market segment?
Answer
A group of present or potential customers with some common characteristic which is relevant in explaining and predicting their response.
6
Question
What are the geographic segmentation methods?
Answer
Location, Language, Cultural preference, Market size, Population density, Climate.
7
Question
What demographic factors are considered in demographic segmentation?
Answer
Age, Income, Gender, Education, Occupation, Race, Ethnicity and/or religion, Family life cycle, Children Age, Marital Status.
8
Question
What are the psychographic segmentation methods?
Answer
Personality, Motives, Lifestyles, Geodemographics, VALS, Resources, Self-orientation.
9
Question
What are the behavioral segmentation methods?
Answer
1. Benefit - Groups customers based on the benefits they derive from the product (e.g., convenience, economy, prestige). 2. Occasion - Based on when a product is purchased or consumed (e.g., everyday vs special event). 3. Usage - Based on the level of usage (e.g., light vs. heavy user). 4. Loyalty - Based on level of customer commitment (e.g., not loyal vs. completely loyal).
10
Question
What is the principle of the 80/20 rule in market segmentation?
Answer
A principle holding that 20 percent of all customers generate 80 percent of the demand.
11
Question
What criteria should be used to evaluate segment attractiveness?
Answer
Accessible, Differentiable, Actionable, Measurable, Substantial.
12
Question
What factors are considered when selecting target markets?
Answer
Segment size, Segment adoption percentage, Purchase behavior, Purchase price, Frequency of purchase, Profit margin percentage, Fixed costs.
13
Question
What do the segment attractiveness categories High, Medium, and Low indicate?
Answer
They indicate the level of attractiveness of a market segment to a firm.
14
Question
What are the advantages of targeting strategies?
Answer
Potential savings on production/marketing costs, Greater financial success, Economies of scale in production/marketing.
15
Question
What are the disadvantages of a mass undifferentiated marketing strategy?
Answer
Unimaginative product offerings, Company more susceptible to competition, Cannibalization, High costs in product design, production, and promotion.
16
Question
What is concentrated niche marketing?
Answer
A strategy that allows smaller firms to better compete with larger firms and better meet the needs of a narrowly defined segment.
17
Question
What is positioning in marketing?
Answer
Developing a specific marketing mix to influence potential customers' overall perception of a brand.
18
Question
What are the components of a positioning strategy?
Answer
Salient Attribute, Imagery, Emotion, Competition, Value, User, Competitor Benefits, Firm Benefits, Customer Needs.
19
Question
What does perceptual mapping represent in marketing?
Answer
A means of displaying, in two or more dimensions, the location of products or brands in customers' minds.
20
Question
What dimensions are often used in perceptual mapping?
Answer
Price and Style.
21
Question
Based on the provided text, what is the positioning of Tide detergent?
Answer
Tough cleaning, color protection.
22
Question
What is the positioning of Dreft detergent?
Answer
Fabric and skin safety on baby clothes.
23
Question
What does the term 'firm competency' refer to in targeting strategy?
Answer
The ability of a firm to effectively compete and succeed in a particular market segment.