MKTG 448 Exam 1 - FLASHCARDS - Segmentation, Targeting, and Positioning

Question 1

What are the six requirements for segmentation to be useful?

Answer 1

1. Identifiable. 2. Substantial. 3. Accessible. 4. Stable. 5. Differentiable. 6. Actionable

Question 2

What is it when an organization should be able to identify customers in each segment and to measure their characteristics, such as demographics or usage behavior?

Answer 2

Identifiable

Question 3

What is it called when a segment should be large enough for a firm to serve profitably?

Answer 3

Substantial

Question 4

True or false: There is not much value in creating a segmentation scheme if an organization cannot reach the segments?

Answer 4

TRUE. It must be accessible

Question 5

True or false: To be accessible, a segment needs to be reachable through communication and distribution channels independent of other segments?

Answer 5

TRUE

Question 6

True or false: A segment should be stable over a long enough period of time that any marketing effort would be profitable?

Answer 6

TRUE

Question 7

What does it mean for a segment to be differentiable?

Answer 7

Consumers in a segment should have similar needs, and these needs should differ from the needs of consumers in other segments

Question 8

What is the rationale behind market segmentation strategy?

Answer 8

To achieve competitive advantage and superior performance, firms should (1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop specific marketing mixes for each targeted market segment

Question 9

What groups customers with similar needs into customer segments and then determines the characteristics of customers in those segments?

Answer 9

Segmentation

Question 10

True or false: Without segmentation, companies can overlook opportunities as they continue to provide a single solution for everybody?

Answer 10

TRUE

Question 11

True or false: Segments with unmet needs are opportunities that can drive marketing strategy and new product development?

Answer 11

TRUE

Question 12

Do firms create segments?

Answer 12

No, they uncover them

Question 13

True or false: Different companies may segment the same market differently, depending on how they view consumers and their needs/preference?

Answer 13

TRUE

Question 14

How does segmentation benefit customers?

Answer 14

Customers benefit from products and services tailored to their needs because they provide convenience, save time, and enrich the customer experience

Question 15

How do organizations benefit from segmentation?

Answer 15

It helps them identify underserved customers and unfulfilled customer needs/preferences

Question 16

True or false: segmentation allows firms to better target their promotions and customize their products?

Answer 16

TRUE

Question 17

What is selecting segments that the firm wants to focus on for its products or services called?

Answer 17

Targeting

Question 18

The goal of ______ is to select segments that improve the organization’s chances of maximizing its long-term profitability in those segments?

Answer 18

Targeting

Question 19

What is an undifferentiated market?

Answer 19

There are virtually no differences in the needs of customers

Question 20

True or false: in undifferentiated markets, companies may decide to adopt a mass-marketing (undifferentiated-marketing) approach by designing the same product for everyone?

Answer 20

TRUE

Question 21

What does an undifferentiated marketing approach allow for?

Answer 21

Allows firms to reach the largest potential market at low cost because of economies of scale in product design and marketing

Question 22

What is it called where companies can customize their products and services for individual customers?

Answer 22

Micro marketing, disaggregated marketing, or local marketing

Question 23

True or false: a firm’s ability to collect immense amounts of data and reach customers in real time through the internet can enable one-to-one marketing and mass customization?

Answer 23

TRUE

Question 24

True or false: When choosing among segments, it is tempting for a company to target segments that are large, have high growth potential, and where the share of the company’s brands is low?

Answer 24

TRUE

Question 25

What is the first factor that influences the selection of segments?

Answer 25

First, a firm should consider the characteristics of various segments, such as how large they are, how fast they are growing, and how profitable they are likely to be

Question 26

What is the second factor that influences the selection of segments?

Answer 26

Second, the firm should consider its own competencies and resources that are available to address the needs of the different segments (does it have a competitive advantage, parity, or competitive disadvantage in market position)

Question 27

True or false: Marketers should also consider their long-term objective in pursuing a segment; for example, they may want to target a small and emerging segment, since it may allow their organization to build unique skills that provide it with an advantage in the future?

Answer 27

TRUE

Question 28

Should a firm consider current and potential competition in each segment?

Answer 28

Yes

Question 29

What represents a firm’s, product’s, or brand’s location vs its competitors in the mental maps that consumers construct to represent the range of possible solutions to their problems?

Answer 29

Position

Question 30

Why are strong positions powerful?

Answer 30

Strong positions are powerful because they help consumers categorize products by their similarities and, at the same time, distinguish and differentiate between products based on their differences

Question 31

True or false: regardless of a company's strategic intent in positioning its product, consumers actually determine the product's position by their response to it?

Answer 31

TRUE

Question 32

How do companies begin the positioning process?

Answer 32

By creating a positioning statement

Question 33

What is a strategic document that communicates the unique value the product/brand would offer to a particular target segment?

Answer 33

Positioning statement

Question 34

What distills the product’s value proposition into a compelling answer to the all-important question, "Why should I buy?"

Answer 34

Positioning statement

Question 35

What is demand forecasting?

Answer 35

The process of predicting how much demand there will be for a product in the future

Question 36

What type of positioning is when buyers do not have much information about the brand and its attributes, or the brand’s attributes are too close to another brand, and therefore consumers view the brand as just another me-too offering?

Answer 36

Under positioning

Question 37

What type of positioning is when buyers view the brand as being very narrow, and as such do not understand the breadth of the brand offering?

Answer 37

Over positioning

Question 38

What type of positioning is when buyers become confused because the brand has created too many associations with the product?

Answer 38

Confused positioning

Question 39

What type of positioning is when buyers find it difficult to believe the claims made by the brand given the price, product features or the manufacturer?

Answer 39

Doubtful positioning

Question 40

What component of positioning statements is this: explicit description of the target market segment that helps consumers easily discern which brands directly address their specific needs and which don’t?

Answer 40

For whom, for when, for where

Question 41

What component of positioning statements is this: a simple description of the unique value claim the brand offers, written from the consumer’s viewpoint?

Answer 41

What value

Question 42

What component of positioning statements is this: evidence that provides consumers with reasons to believe the brand’s claims?

Answer 42

Why and how

Question 43

What component of positioning statements is this: description of the competitive set in which the brand classifies itself and the alternatives consumers may be considering?

Answer 43

Relative to whom

Question 44

What is a two- or three-dimensional display of customer perceptions of competing alternatives in the marketplace?

Answer 44

Perceptual map

Question 45

What is a two- or three-dimensional display of customer preferences of attributes?

Answer 45

Preference map

Question 46

What are Incorporate preferences and perceptions in the same space?

Answer 46

Joint space map