Chapter 6

Q1: What is a marketing strategy?

A: A company’s game plan for engaging target customers, creating value, and building profitable relationships.

Q2: What are the two core questions marketing strategy must answer?

A:

1. What customers will we serve? (Segmentation & Targeting)

2. How will we serve them best? (Differentiation & Positioning)

Q3: What does STDP stand for?

A:

• Segmentation

• Targeting

• Differentiation

• Positioning

Q4: What is market segmentation?

A: Dividing the total market into smaller segments of buyers with distinct needs or behaviours.

Q5: What are the four main bases for segmenting consumer markets?

A:

1. Geographic – location, region, climate

2. Demographic – age, gender, income, education

3. Psychographic – lifestyle, social class, personality

4. Behavioural – usage rate, benefits sought, loyalty, occasions

Q6: What is intermarket (cross-market) segmentation?

A: Segmenting consumers with similar needs and behaviours across different countries or markets.

Q7: What are the five requirements for effective segmentation?

A:

1. Measurable

2. Accessible

3. Substantial

4. Differentiable

5. Actionable

Q8: What is market targeting?

A: Evaluating each segment’s attractiveness and choosing which one(s) to serve.

Q9: What are the four main targeting strategies?

A:

1. Undifferentiated (mass) marketing – one offer for entire market

2. Differentiated marketing – different offers for multiple segments

3. Concentrated (niche) marketing – focus on one or a few segments

4. Micromarketing – tailoring to local or individual needs

Q10: What is socially responsible target marketing?

A: Avoiding marketing that exploits vulnerable segments (e.g., children, low-income groups), and promoting fairness and ethics.

Q11: What is differentiation?

A: Making your market offering stand out by providing unique customer value.

Q12: How can a firm differentiate?

A: Through product, services, channels, people, or brand image.

Q13: What is positioning?

A: Arranging a product to occupy a distinct, desirable place in the minds of consumers.

Q14: What is a value proposition?

A: A company’s promise of value — why a customer should buy from them instead of competitors.

Q15: What is a positioning map?

A: A visual tool showing customer perceptions of brands based on key attributes (e.g., price vs. quality).

Q16: What is an example of positioning?

A: Tesla: high-end, sustainable, tech-forward electric cars.

Q17: What are the five winning value propositions?

A:

1. More for more – luxury, premium price (e.g., Rolex)

2. More for the same – better value (e.g., Lexus vs BMW)

3. Same for less – discount brands (e.g., Walmart)

4. Less for much less – low-cost, low-frills (e.g., Dollarama)

5. More for less – tough to sustain, best value (e.g., ALDI)

Q18: What are the 4 Ps of the marketing mix?

A:

• Product – the goods/services offered

• Price – what customers pay

• Place – how it’s delivered/distributed

• Promotion – how it’s communicated