Marketing Strategy

Question 1

Marketing strategy

Answer 1

STP:

• Segmentation
• Targeting
• Positioning

Question 2

Segmentation

Answer 2

Identifying customer segments based on similarities and differences. Customers within a segment likely respond similarly to a company’s product offering.

Question 3

Segmentation variables

Answer 3

• Geographic: nations, states, regions, counties, cities, neighbourhoods…
• Demographic: age, life stage, generation, gender, ethnicity, income…
• Psycographic: lifestyle, values, personality traits…
• Behavioral: consumption occasion, benefits sought, CDJ, usage rate…

Question 4

Targeting

Answer 4

Selecting the segments that present the greatest opportunities. Possible selection criteria: size, attractiveness, strategic fit.

Question 5

Segment size

Answer 5

Estimated market demand and growth of a segment.

Question 6

Segment’s attractiveness

Answer 6

Amount of value that can be created and captured from a segment.

Question 7

Segment’s strategic fit

Answer 7

Degree to which a segment is alligned with the firm’s objectives, resources and skills.

Question 8

Positioning

Answer 8

The design offering to ocupy a distinctive place in the customer’s mind.

Question 9

Positioning statement structure

Answer 9

For [target], [brand] is the [frame of reference] that [points of difference], because [reasons to believe].

Question 10

Brand

Answer 10

Name, term, sign, symbol, design, or some combination of these elements, intended to identify the products of one firm and to differentiate them from those of competitors.

Question 11

Brand differences

Answer 11

• Functional, rational or tangible: related to product performance
• Symbolic, emotional or intangible: related to the meaning of the brand in an abstract sense

Question 12

Brand equity

Answer 12

Added value endowed to products with consumers due to the differential effect brand knowledge has on consumer response to the marketing of that brand.

Question 13

Frame of reference

Answer 13

Competitive frame of reference defines which other brands a brand competes with and which should thus be the focus of competitive analysis.

Question 14

Points of difference (PODs)

Answer 14

Associations that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.

Question 15

Reasons to believe

Answer 15

Attributes that provide factual or demonstrable support for PODs.