Principles of Marketing test #2

Positioning

Develop positioning

Develop a marketing mix

Targeting

Assess Attractiveness

Select target market

Segmentation

Identify strategy or objectives

create profile

What is “Segmentation”?

•Organizing the market into more manageable parts to make marketing efforts more effective

Important when discussing segmentation

Customers within a segment must be relatively simuilar

Customers from different segments much be different enough to justify additional marketing expenses that may happen

What is mass (undifferentiated) marketing?

Marketing to the entire market with one offer, ignoring segment differences.

What is differentiated marketing?

Targeting several market segments with different offers for each.

What is concentrated (niche) marketing?

Focusing marketing efforts on a single, well-defined segment.

What is customized or micro marketing?

Tailoring products and marketing to individual customers or very small segments. Includes mass customization

Name four main segmentation methods

Geographic, Demographic, Psychographic, Behavioral.

What is geographic segmentation?

Segmenting markets based on location, such as country, region, city, or climate

What is demographic segmentation?

Segmenting markets by age, gender, income, education, occupation, etc.

What is psychographic segmentation?

Dividing the market based on lifestyle, values, interests, and personality.

What is behavioral segmentation?

Dividing customers by their behavior such as usage, loyalty, benefits sought, or purchase occasion

What criteria are used to assess market segment attractiveness?

Substantial: market size

Reachable: If the market is accessible or reachable 

Responsive: Reactions from sunsumer must be postive

Profitable:

Identifiable: Must be able to identify who is within their market

What are the main targeting strategies?

Undifferentiated (mass), Differentiated, Concentrated (niche), Micro marketing

Differentiated

a company targets two or more distinct market segments with separate marketing mixes designed for each segment.

Concentrated (niche)

A strategy focusing on a single, well-defined market segment or niche.

Micro Marketing 

An individualized approach targeting very small segments or even individual customers.

How is positioning defined in marketing?

Positioning is crafting a brand’s image and identity in the minds of target customers relative to competitors.

What is a value proposition?

A clear statement of the unique benefits a product or brand delivers to customers.

How does differentiation support positioning?

By highlighting what makes a product or brand unique and better than competitors.

What are common positioning methods?

Symbols 

competition

Salient Attributes

Value Propositioning 

Salient Attributes

product attributes that are most important to target market

Value Propositioning 

relationship of price to quality

What is a perceptual (product) positioning map?

A visual tool showing how consumers perceive brand attributes compared to competitors, often on two dimensions like price and quality

How is a perceptual map useful in positioning?

Helps identify market gaps and competitive positions for better marketing strategy

What is the purpose of marketing research?

To gather information that helps businesses make informed decisions and solve marketing problems systematically.

Why is systematic problem solving important in marketing research?

It ensures that marketing issues are identified clearly and addressed methodically with reliable data and analysis.

What are the stages in the Marketing Research Process?

1) Define objectives and research needs

2)designing the research

3) collecting the data

4) analyzing he data and developing insights

5)Developing and implementing an action plan

Problem definition

Understand/ clarify symptoms

Perform Root cause analysis

- list all “possible” cause(s)

–identify “probable” causes

–list actions that could alleviate problem

–assess information needs

–assess available information (information GAP)

–(Formulate Research Objectives)

Why establish research objectives?

To clarify what the research aims to achieve, guiding the design and focus of the study.

What are primary data?

Data collected firsthand specifically for the research project, such as surveys and experiments

What are secondary data?

Data previously collected for other purposes, such as government reports, syndicated data, or published research

What is syndicated data?

market research information collected and compiled by a third-party company and then sold to multiple clients

What is Panel data?

Information collected from as group of consumers, organized into panels over time

What is scanner data?

quantitive research obtained from scanner readings of universal product code (UPC) labels at checkout counter.

Can use data to determine what would happen to its sales if it reduced the price of its least popular product.

What are qualitative and quantitative data?

Qualitative: Open ended questions to under interest.

Quantitative: Structured questions that can be turned into statistics

Name some data collection techniques.

Observation

In- debt interviews

focus group interviews

survey research

What are advantages and disadvantages of primary research?

Advantages: 

1)specific to the immediate data need

2) offers behavioral insights

Disadvantages: 

1) costly

2) me consuming

3)requires more training and experience to design a study

What are advantages and disadvantages of secondary research?

Advantages:

1)saves time

2)free or not expensive

Disadvantages: 

1)may not be precisely relevant to info needs

2)info might not be timely

3)sources might not be original

4)methods for collecting data may not be appropriate

5) data sources may be biased

What is Big Data?

5 V’s

Volume

variety

velocity: quick moving data

veracity: data in doubt

value

What is sample selection and why is it important?

Choosing a representative group from the population to generalize research results accurately

What are ethical considerations in marketing research?

1) prohibits selling or fundraising under the idea of collecting research

2)supports research integrity by avoiding misrepresentation or the omission of pertinent research data

3)encourages fair treatment of clients and suppliers 

What is a product?

Anything offered to satisfy a need or want, including physical goods, services, experiences, or ideas

What is the difference between goods and services?

Goods are tangible items you can touch, while services are intangible activities or benefits provided to customers. They exist on a tangible-intangible continuum.

What is the Total Product Concept?

It includes the core value, the actual product (features, design, brand), and associated services or augmented products like warranties and support.

What are consumer products and industrial products?

Consumer products are for personal use, while industrial products are bought for business use or production of other good

How do product and brand differ?

products may come and go; brands are sustainable assets for the firm. Products are merely tools that carry the brand forward.

What are the main types of consumer products?

Convenience, shopping, specialty, and unsought products.

What is product mix/portfolio?

The complete set of all products and services offered by a firm

What is cannibalization in product lines?

To many products become costly and can take away sales from other products

take away= cannibalize

What is brand equity?

The value a brand adds to a product from consumer perception, loyalty, and awareness.

Decrease depth

to delete products

increase depth

add items depending on consumer preferences

decrease breadth

delete entire product line

increase breadth

adding new product lines

Family brands

Company can use own name to brand all products and product lines

Manufacturer vs Private Label Brands

Manufacturer: produce products

Private label brands: products developed by retailers

Line Extensions

use of same brand name within the same product line, shows an increase in product lines depth

Brand Dilution

happens when brand extension adversely affects consumers perceptions about the attributes the core brand believed to hold

Co-Branding

practice of marketing two or more brands together on the same package

Repositioning

marketers change brands focus to target new market

What are brand building strategies

Growth strategies like market penetration, market development, product development, and diversification.

What is the Product Life Cycle?

introduction, growth, maturity

What is the product-service continuum?

A spectrum showing pure goods at one end and pure services at the other, with many offerings falling in between.

What are key characteristics of services that differ from products?

Intangibility, inseparability, variability, and perishability.