Chapter 6

Question 1

Designing a customer-driven marketing strategy

Answer 1

Selecting customers

1. Market segmentation
2. Market targeting

Deciding on a value proposition

1. Differentiation
2. Positioning

Question 2

Segmentation variable

Answer 2

Geographic, demographic, psychographic, behavioral

Question 3

Geographic segmentation

Answer 3

Dividing market into different geographical units, localizing product, advertising, promotion, sales efforts to specific geo. markets

Question 4

Demographic segmentation

Answer 4

Dividing market into segments based on age, life cycle, gender, income, occupation, education, religion, ethnicity, and generation

Question 5

Psychographic segmentation

Answer 5

Marketers segment their markets using variables such as social class, lifestyle, and personality characteristics

Question 6

Occasion segmentation

Answer 6

Segments divided according to occasions, when the buyers get the idea to buy, make their purchase, and use the purchased item

Question 7

Behavioral segmentation

Answer 7

Dividing segments based on consumer knowledge, attitudes and usage of a product for responses to a product

Question 8

Benefit segmentation

Answer 8

Segments divided according to the different benefits that so summers seek from the product

Question 9

Segmenting international markets

Answer 9

Variables include geographic location, economic factors (BRIC), political and legal factors, and cultural factors

Question 10

Inter market (cross market) segmentation

Answer 10

Grouping consumers with similar needs and buying behaviors irrespective of their location

Question 11

Requirements for Effective segmentation

Answer 11

Measurable- size and purchasing power of the segments can be measured

Accessible- markets can be reached and served

Substantial- large and profitable enough to serve

Differentiable- conceptually distinguishable and reading differently to marketing mix

Actionable- programs for attracting and serving can be designed

Question 12

Target market

Answer 12

Set of buyers sharing common needs or characteristics that the company decides to serve

Question 13

Evaluate various segments based on

Answer 13

• segment size and growth
• segment structural attractiveness
• company objectives and resources

Question 14

Undifferentiated (mass marketing)

Answer 14

Go after while market with one offer, focuses on the common needs of consumers

May have trouble competing with more niche-focused brands

Question 15

Differentiated (segmented marketing)

Answer 15

Targets several market segments and designs separate offers for each

Question 16

Concentrated (niche marketing)

Answer 16

Firm goes after a large share of one or a few smaller segments or niches

Question 17

Micro marketing

Answer 17

Tailoring products and marketing programs to suit the tastes of specific individuals and locations

2 types:
Local marketing- tailoring to needs and wants of local customer segments
Individual marketing- tailoring to needs and wants of individual customers

Question 18

Mass customization

Answer 18

Process by which firms interact one to one with masses of customers to design products, services, and marketing programs tailor made to individual needs

Question 19

Choosing targeting strategy

Answer 19

Factors to consider- company resources, product variability, product’s life cycle stage, market variability, competitor’s marketing strategies

Question 20

Product position

Answer 20

Way a product is defined by consumers on important attributes

Question 21

Differentiation and positioning strategy

Answer 21

1. Identifying a set of differentiating competing events advantages
2. Choosing the right competitive advantages
3. Selecting an overall positioning strategy

Question 22

Competitive advantage

Answer 22

Advantage gained over competitors by offering greater customer value by having lower prices, or providing more benefits that justify higher prices

Question 23

Product differentiation

Answer 23

Brands can be differentiated in features, performance, or style and design

Question 24

Service differentiation

Answer 24

Some companies gain services through speedy, convenient service

Question 25

Unique selling proposition (USP)

Answer 25

Each brand should pick an attribute and tout itself as number one in that attribute Ex.) Walmart- unbeatable low prices Should be important, distinctive, superior, communicable, preemptive, affordable, profitable

Question 26

Value proposition

Answer 26

Refers to full mix of benefits which brand is differentiated and positioned

Question 27

Winning value propositions

Answer 27

``` More (benefits) for more (price) More for the same More for less The same for less Less for much less ```