Market Segmentation And Positioning

Question 1

Describe the market segmentation, targeting and positioning

Answer 1

Divide the whole market into different customer segments with similar needs and chose which segment to target. Than you can position your brand to align with that target

Question 2

What differentiates market segmentation and product differentiation

Answer 2

Segmentation is targeted while product differentiating is a result of different talent, solutions and makers tastes

Question 3

How does segmentation for retail and b2b differ

Answer 3

When segmenting. Consumer groups the segments are characterized by the consumers behavior and status while businesses are commonly segmented based in organization type and purchasing patterns

Question 4

What ate the four approaches to segment targetting

Answer 4

Undifferentiated, differentiated, concentrated/niche and customized

Question 5

What is market positioning

Answer 5

Giving the customer reasons to buy by sending signals of alignment to their preferences and needs

Question 6

What is the stp process

Answer 6

Sevmentation->targeting->positioning

To get the most easily accessed and attractive customer’s

Question 7

What is the product differentiation strategy

Answer 7

Highlighting the products attributes and features highlighting the differences between it and the competition, it is make first and hope people like it as opposed to segmentation strategy which designs with a group in mind

Question 8

What is the microeconomic result when there are a limited numbers if producers that focuses on different segments of the market

Answer 8

Monopolistic competition

Question 9

Is market segmentation focused on bending demand to existing supply

Answer 9

No on bending supply to existing demand, product differentiation focuses on supply

Question 10

What is the difference between the buildup and breakdown methods of market segmentation

Answer 10

Buildup identifies similarities between customers while breakdown identifies and highlights differences between groups

Question 11

What criteria are customers commonly categorized under

Answer 11

Behavioral, psychological and profile criteria

Question 12

Give example of behavioral consumer criteria

Answer 12

Their purchase and consumption patterns and their media, technology and other product usage

Question 13

Give examples of psychological consumer criteria

Answer 13

Their lifestyle, personality, opinions, attributes, motives and needs

Question 14

Give examples of consumer profile criteria

Answer 14

Their demographic, life stage and location

Question 15

What type of data is easy and cheap to obtain but ineffective at predicting behavior

Answer 15

Profile data like demographic and geographic data

Question 16

What type if data is costly to obtain and maintain but effective at predicting behavior

Answer 16

Behavioral data like purchase history

Question 17

What is psychography

Answer 17

The science of predicting a complete lifestyle through looking at limited activities and opinions

Question 18

What is geodemography

Answer 18

The relationship between a persons living arrangements and their behavior

Question 19

Name a couple of geodemographic profiling systems

Answer 19

ACORN and Mosaic

Question 20

Name three perspectives from which you can analyze the usage of a product

Answer 20

The Social interaction perspective, the experiential perspective and the functional utalisational perspective

Question 21

What doest it mean if a customer has a high RFM value

Answer 21

That they have purchased recently and frequently

Question 22

By what variables do you segment b2b markets

Answer 22

By different kinds if firmographics and professional buyer needs and preferences

Question 23

What are firmographics

Answer 23

The study of how different aspects of a firm such as location and size affect their needs

Question 24

Name the main organizational characteristics

Answer 24

Size, location, industry, market served and value

Question 25

By what characteristics may business customers (buyers) be characterized by

Answer 25

DMU decision making units such as attitude, policies and budget in addition to Choice criteria or the purchase situations

Question 26

What are SCI codes

Answer 26

Codes signifying industry that are rarely used as they are full of to broad categories. Instead businesses prefer to use custom names, so called verticals to segment their potential business customers by industry

Question 27

What is a CRM system

Answer 27

A customer relation management system is a database containing the location, contact info, purchase and transaction history and decision making unit structure of the business customers

Question 28

Why are defectors in B2B marketing

Answer 28

Those prospecting buyers who decide to abandon their commitment

Question 29

Why is it important to retain information about defectors

Answer 29

To recognize patterns and identify what makes who leave

Question 30

What are the DAMP criteria for targeting a market segment

Answer 30

That the segment is distinct, accessible, measurable and profitable

Question 31

What is the undifferentiated approach to targeting

Answer 31

To ignore segmentation and focus in the demands if the while market. Common when segmentation and differentiation is impossible like on the market for sand or water

Question 32

Describe the differentiated targeting approach

Answer 32

Developing separate products for different segments. While this adapts better to the customers needs it risk spreading resources thin by focusing on more than one segment

Question 33

Describe the concentrated/niche marketing strategy

Answer 33

Hyper focusing on one segment common among small businesses or when one segment is far more attractive than others. However this ignores large parts of the market

Question 34

Describes the customized targeting strategy

Answer 34

Develop a strategy for each customer instead if each segment. Costly but effective when dealing with few high value customers such as in B2B

Question 35

What critiques are there to market segmentation

Answer 35

It does not stress differentiation from competitors enough and it is costly and difficult to implement properly as the approach may clash with established practice and is often sold as a consultant scheme ill fitted to the actual business. Many such segmentation methods are also unproven in their effectiveness

Question 36

How do you position a company towards a market segment

Answer 36

By adapting the product and user experience to the segments needs and then advertise your self in a way that changes your perception in the minds of the target

Question 37

What is perceptual mapping

Answer 37

Creating a visual representation of attributes where you place different brands, for example a political compass. To dominate a segment you need to have distance to other brands on the perceptual map

Question 38

What is a c-d map

Answer 38

A visual representation where brands attributes are compared to a dominant player like cocacola among soft drinks. The Centrality axis highlights similarities and the differentiation axis highlights the differences to that brand.

Question 39

Name each corners in the cd map

Answer 39

Top right are aspirational and are highly distinctive and diferentiated, bottom right are mainstream with wide appeal but low differentiation. Unconventional are top left and distinct but not iconic and peripheral brands (bottom left) are seldom noticed as they are similar to the mainstream but lack common appeal. The higher top right you come the more of a trendsetter are you

Question 40

What is the difference between functional and symbolic postioning

Answer 40

Functional positioning focuses on the tangible attributes that are to match the segments needs while symbolic positioning is mainly concerned with intangible social and hedonic perceptions

Question 41

What are the risks with repositioning

Answer 41

It is costly, and you might lise the old audience and fail to garner a new one. Simply put you stand to lose it all except further debt

Question 42

In what ways may you implement positioning

Answer 42

1. First change the tangible attributes to better fit the current segment and then communicate those improvements to the same audience.
2. Just change the advertisement
3. Target the same product to a new market
4. Adapt a product to a new segment and target propositions to the new segment.