Quiz 3: CH9,10,&11 Flashcards
Market segmentation involves aggregating prospective buyers into groups that have two keys characteristics. What are they?
The groups
1) should have common needs and
2) will respond similarly to a marketing action
In terms of market segments and products, what are the three market segmentation strategies?
1) one product and multiple segments
2) multiple products and multiple market segments
3) “segments of one,” or mass customization
The process of segmenting and targeting markets is a bridge between which two marketing activities?
identifying market needs and executing the marketing program
What is the difference between the demographic and behavioral bases of market segmentation?
Demographic segmentation is based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers.
Behavioral segmentation is based on some observable actions or attributes by prospective customers – such as where they buy, what benefits they seeks, how frequently they buy, and why they buy.
What factor is estimated or measured for each of the cells in a market-product grid?
Each cell in the grid can show the estimated market size of a given product sold to a specific market segment.
What are some criteria used to decide which segments to choose for targets?
market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization’s objectives and resources
How are marketing and product synergies different in a market-product grid?
Marketing synergies run horizontally across a market-product grid. Each row represents an opportunity for efficiency in the marketing efforts to a market segment.
Product synergies run vertically down the market-product grid. Each column represents an opportunity for efficiency in research and development (R&D) and production.
What is the difference between product positioning and product repositioning?
Product positioning refers to the place a product occupies in consumers’ minds on important attributes relative to competitive products
Product repositioning involved changing the place a product occupies in a consumer’s mind relative to competitive products.
Why do marketers use perceptual maps in product positioning decisions?
Perceptual maps are a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers. Managers use perceptual maps to see how consumers perceive competing products or brands as well as their own product or brands. Then, they can develop marketing actions to move their product or brand to an ideal position.
What are the four main types of consumer products?
convenience
shopping
specialty
unsought
What is the difference between a product line and product mix?
Product line - a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range product mix - all the product lines offered by an organization
What marketing metric might you use in a marketing dashboard to discover which states have weak sales?
Annual % sales change - measures the annual growth rate over a specified time period for each state
What kind of innovation would an improved electric toothbrush be?
continuous innovation - no new learning is required
Why can an “insignificant point of difference” lead to new-product failure?
The product must have superior characteristics that deliver unique benefits to the user compared to those of competitors. Without these, the product will probably fail.
What is the new-product strategy development stage in the new-product process?
the stage that defines the role for a new product in terms of the firm’s overall objectives
