MKTG 3620 Test 2: Modules 5–8 Marketing Review CORRECT

What is segmentation?

Dividing a broad market into groups with similar needs, characteristics, or behaviors.

What are the four common segmentation bases?

Geographic, demographic, psychographic, and behavioral.

What is targeting?

Evaluating segments and choosing which group(s) to serve based on attractiveness and company fit.

What makes a useful market segment?

It is measurable, substantial, accessible, differentiable, and actionable.

What is positioning?

Creating a clear, distinctive place for a brand in the target customer's mind relative to competitors.

What is the STP sequence?

Segmentation, Targeting, Positioning.

What is an ideal customer profile (ICP)?

A description of the best-fit customer or account.

What is a buyer persona?

A research-based picture of an individual buyer's goals, pain points, motives, and habits.

How do System 1 and System 2 differ?

System 1 is fast and intuitive; System 2 is slow and analytical.

What marketing appeals fit each thinking system?

System 1: emotion and simple visuals; System 2: evidence and detailed explanations.

What is the Consumer Processing Model?

Consumers process information to evaluate choices and make decisions.

What is the Hedonistic Experiential Model?

Consumers seek pleasure and sensory experiences.

How do the two consumer models differ in an ad?

Processing focuses on facts; experiential focuses on feelings.

What are reciprocity and commitment/consistency?

Reciprocity: returning favors; consistency: acting in line with prior commitments.

What is social proof?

Using others' actions as evidence of what to do.

What are authority and liking?

Authority: credible expertise; Liking: being persuaded by people we like.

What are scarcity and unity?

Scarcity increases perceived value; unity increases influence through shared identity.

What is total addressable market (TAM)?

The total potential demand or revenue opportunity in a relevant market.

What is the difference between a medium and a vehicle?

Medium is a broad channel; vehicle is a specific outlet.

What is reach?

The number of unique people exposed to a message at least once.

What is frequency?

The average number of exposures per person reached.

How do reach and impressions differ?

Reach counts unique people; impressions count total exposures.

What is CPM, and what is its formula?

Cost per thousand impressions; CPM = (advertising cost / impressions) x 1,000.

What is programmatic advertising?

Automated buying and selling of digital ad inventory.

What are paid, earned, and owned media?

Paid: purchased ads; Earned: unpaid attention; Owned: brand-controlled channels.

How can AI affect media planning?

It can support audience analysis, targeting, and budget optimization.

Why can advertising work?

It builds awareness, connects brands with needs, and influences attitudes.

What are three common advertising objectives?

Inform, persuade, remind.

What makes an advertising objective useful?

Defines target audience, desired change, measurement, and deadline.

What is the difference between a feature and a benefit?

Feature: what a product has; Benefit: why it matters to the customer.

What is a strong advertising value proposition?

A clear reason for the target customer to choose the brand.

What are basic advertising best practices?

Know the audience, focus on benefits, and use credible support.

What is a call to action (CTA)?

A clear prompt for the desired next step.

Which measures match common advertising goals?

Awareness: reach; Engagement: interactions; Action: conversions.

How can AI affect advertising strategy?

It can help generate ideas and personalize messages.