Marketing Midterm

Mid term is next thursday Chapter 1-5 and 7,8

Chapter 1

Define marketing and identifying the diverse factors that influence marketing actions

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to custom-ers and for managing customer relationships in ways that ben-efit  the  organization  and  its  stakeholders.  This  definition relates to two primary goals of marketing: (a) discovering the needs  of  prospective  customers  and  (b)  satisfying  them.

Explain how marketing discovers and satisfies consumer needs 

Discovering Consumer Needs and Wants:

• The primary goal is to identify the needs (basic necessities) and wants (needs shaped by knowledge, culture, and personality) of potential buyers. This is challenging because consumers may not always know or articulate their desires. Effective marketing shapes these wants and influences buying behavior.

Satisfying Targeted Consumers:

• Since it's impossible to satisfy all consumer needs, organizations focus on the needs of specific target markets (homogeneous groups with common needs who respond similarly to marketing actions). The company then develops a unique marketing program to address these target segments.

Distinguish between marketing mix factors and environmental forces

There are 4 elements in marketing program designed to satisfy customers which are product, price, promotion and place. These 4 p’s are the marketing mix. Environmental forces also called uncontrollable variables. These include social, economic, technological, com-petitive, and regulatory forces

Explain how organizations build strong customer relationships and customer value through marketing 

The essence of successful marketing is to provide sufficient value to gian loyal customers. Customer  value  is the unique combination of benefits received by targeted buy-ers that usually includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service. Marketers do this by using one of three value strategies: best price, best product, or best service

Describe the characteristics of a marketing organization 

Organization should implement marketing strategies that 

1. Strive to satisfy the needs of customers

2. Try and achieve organizational goals 

An organization has a market focus orientation focuses on 

1. Continosully collecting information about customer needs 

2. Sharing this information across departments

3. Using it to create customer value 

What is Marketing?

Marketing is the activity for creating, communicating, delivering and exchanging offeringsthat benefit customers, the organization, its stakeholders, and society at large 

Marketing Focuses on _____ and ____consumer needs

Discovering and satisfying 

What 4 factors are needed for marketing to occur 

The four factors are 

1. Two or more parties with unsatisfied needs

2. A desire and ability on their part to have theri needs satisfied 

3. A way for parties to communicate

4. Something to exchange 

A organization can’t satisfy the needs of all consumers, so it must focus on one or more sub groups which are its __________

Target Markets 

What are the four marketing mix mix elements that make up the organizations marketing program?

Product, Price, Promotion and place 

WHat are environmental forces?

Environmental forces are uncontrollable forces that affect a marketing decision. They consist of soical, economic, technological, competiteve and regulatory forces 

What are two key characteristics of the marketing concept?

An organization should 

1. Strive to satisfy the needs of consumers 

2. And while trying to achieve the organizations goals

What is the difference between ultimate consumers and organizational buyers?

Ultimate consumers are the people who use the products are services purchased for a household. Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale 

• Chapter 2 - 

Describe three kinds of orgnaizaiotns and three levels of strategies in them

Types of Organizations:

• For-Profit Organizations: Aim to earn a profit by serving customers, subtracting expenses from total revenues.

• Non-Profit Organizations: Serve customers without profit as a goal, focusing on operational efficiency or client satisfaction.

• Government Agencies: Provide specific services to constituents at federal, state, county, or city levels.

Organizational Levels:

• Corporate Level: Top management directs overall strategy.

• Strategic Business Unit Level: Managers set specific strategic directions for value-creating opportunities.

• Functional Level: Specialists create value for the organization.

Overall, an organization is a legal entity with a common mission, developing offerings to satisfy customer needs and create value.

Describe values, mission, organizational culture, business, and goals

Organizations continuously assess their core values, mission, organizational culture, business, and goals to provide direction and focus. They define their foundation (core values), set a direction (mission and business), and formulate strategies (goals and actions).

Key Elements:

• Core Values: Fundamental, enduring principles guiding conduct.

• Mission: Statement of function in society, identifying customers, markets, products, and technologies.

• Organizational Culture: Shared values, ideas, attitudes, and norms.

• Business: Broad industry category or market sector of the organization's offering.

• Goals: Specific tasks to be achieved by a certain time.

Organizational Strategies:

• Corporate Level: Top management directs overall strategy.

• Strategic Business Unit Level: Managers set specific strategic directions for value-creating opportunities.

• Functional Level: Specialists create value for the organization.

These strategies are often described in a marketing plan, ensuring that organizations effectively accomplish their objectives.

Explain why managers use marketing dashboards and marketing metrics 

Marketing managers use marketing dashboards to display crucial information for achieving marketing objectives. This information includes key performance measures, known as marketing metrics, such as sales or market share. Marketing metrics quantitatively measure the value or trends of marketing actions or results. Marketers use data visualization to present these metrics graphically, allowing them to identify deviations from plans and take corrective actions. 

Discuss how and organizaiotn assesses where it is and where it seeks to be 

Strategic Direction for Organizations:

Key Questions:

1. "Where are we now?":

   • Assess Core Competencies: Understand special capabilities for competitive advantage.

   • Identify Customers: Determine how customers receive value and satisfaction.

   • Analyze Competitors: Examine competitors globally to identify distinctions.

2. "Where do we want to go?":

   • Set Specific Direction: Allocate resources to achieve this direction.

   • Use Business Portfolio Analysis: Evaluate SBUs, product lines, or products as separate investments (cash cows, stars, question marks, dogs) to determine cash allocation.

   • Use Diversification Analysis: Identify growth opportunities with four strategies:

     • Market Penetration: Sell more current products to current markets.

     • Market Development: Sell current products to new markets.

     • Product Development: Sell new products to current markets.

     • Diversification: Sell new products to new markets.

By addressing these questions, organizations can effectively set and achieve their strategic goals.

Explain the three steps of the planning phase of the strategic marketing process

Organizations use the strategic marketing process to allocate marketing mix resources to target markets and gain a competitive advantage. This process includes three phases:

1. Planning Phase:

   • Situation (SWOT) Analysis: Assess the firm's recent history, current status, and future direction, focusing on internal strengths and weaknesses and external opportunities and threats.

   • Market-Product Focus:

     • Market Segmentation: Group buyers with common needs and similar responses to marketing programs.

     • Customer Value Proposition: Identify points of difference that make the product superior to competitors.

   • Marketing Program: Specify the budget and actions (strategies and tactics) for each marketing mix element.

2. Implementation Phase:

   • Execute the marketing strategies and tactics outlined in the plan.

3. Evaluation Phase:

   • Assess the effectiveness of the marketing strategies and tactics, and make adjustments as needed.

This structured approach helps organizations effectively reach their target markets and achieve their marketing objectives

Describe the four components of the implementation phase of the strategic marketing process

The implementation phase involves executing the marketing plan developed in the planning phase. It consists of four key components:

1. Obtaining Resources: Securing the necessary resources to implement the marketing plan.

2. Designing the Marketing Organization: Structuring the organization to handle product management, marketing research, sales, and advertising/promotion activities.

3. Developing Schedules: Creating schedules that outline tasks, time allocation, responsible individuals, and deadlines, often using action item lists and Gantt charts.

4. Executing Marketing Strategies and Tactics: Implementing the detailed day-to-day marketing actions for each element of the marketing mix to achieve the marketing goals.

These components ensure that the marketing program actions are carried out effectively to reach the goals set in the marketing plan.

Discuss how managers identify and act on deviations from plans 

The evaluation phase ensures that the marketing program stays on track with the goals set in the marketing plan. This involves:

1. Comparing Results with Goals:

   • The marketing manager compares the actual results of the marketing program with the goals outlined in the marketing plan.

2. Identifying Deviations or "Planning Gaps":

   • Any deviations from the plan's goals, whether positive or negative, are identified. These are known as "planning gaps."

3. Taking Corrective Actions:

   • The marketing manager takes corrective actions to address these deviations. This includes exploiting positive deviations to enhance success and correcting negative deviations to get back on track.

This process helps ensure that the marketing efforts are effectively achieving the desired outcomes

### Summary of Key Concepts:

#### Strategic Marketing Process:

1. Planning Phase:

   - SWOT Analysis: Evaluate internal strengths and weaknesses and external opportunities and threats.

   - Market-Product Focus: Use market segmentation and customer value proposition to identify points of difference.

   - Marketing Program: Specify the budget and actions for each marketing mix element.

2. Implementation Phase:

   - Obtaining Resources: Secure necessary resources.

   - Designing the Marketing Organization: Structure the organization for product management, marketing research, sales, and promotion.

   - Developing Schedules: Create schedules for tasks, time allocation, responsible individuals, and deadlines.

   - Executing Marketing Strategies and Tactics: Implement the detailed day-to-day actions for the marketing mix elements.

3. Evaluation Phase:

   - Comparing Results with Goals: Identify deviations from the marketing plan's goals.

   - Taking Corrective Actions: Exploit positive deviations and correct negative ones.

### Learning Review Answers:

1. For-Profit vs. Non-Profit Organizations:

   - For-Profit: Earns profit to survive.

   - Non-Profit: Focuses on operational efficiency or client satisfaction without profit as a goal.

2. Examples of Functional Level:

   - Groups of specialists in marketing, finance, operations, accounting, information systems, R&D, or HR focusing on a strategic direction.

3. Meaning of an Organization’s Mission:

   - A clear, concise, meaningful, inspirational, and long-term statement of the organization’s function in society.

4. Business vs. Goals:

   - Business: Broad industry category or market sector.

   - Goals: Specific tasks to be achieved, converting the mission into performance targets.

5. Marketing Dashboard vs. Marketing Metric:

   - Dashboard: Visual display of essential information for a marketing objective.

   - Metric: Quantitative measure of a marketing action or result.

6. Business Portfolio Analysis:

   - Technique to quantify performance measures and growth targets for SBUs to determine cash allocation.

7. Four Market-Product Strategies in Diversification Analysis:

   - Market Penetration: Increase sales of current products in current markets.

   - Market Development: Sell current products to new markets.

   - Product Development: Sell new products to current markets.

   - Diversification: Develop and sell new products in new markets.

8. Three Steps of the Planning Phase:

   - Situation Analysis (SWOT).

   - Market-Product Focus and Customer Value Proposition.

   - Designing a Marketing Program.

9. Customer Value Proposition:

   - A cluster of benefits promised to customers to satisfy their needs.

10. Implementation Phase:

    - Obtaining resources, designing the organization, defining tasks, responsibilities, and deadlines, and executing the marketing program.

11. Goals and Evaluation Phase:

    - Planning phase goals are benchmarks for comparing actual performance results to identify and act on deviations.

This summary captures the key concepts and learning points from Chapter 2 of the marketing text. If you need further details or have more questions, feel free to ask! 🌟

Chapter 3 

 LEARNING OBJECTIVES

Purpose of Environmental Scanning - the process of continually acquiring information to help identify trends. Environmental trends typically come from five sources - Social, Economic, Technological, Competitive and regulatory forces. 

Describe social forces such as demographics and culture - Three key demographic characteristics include a population profile,  a description of generational cohorts (baby boomers, Generation X, Generation Y, and Generation Z), and the racial and ethnic diversity of the population. Culture incorporates the set of values, ideas, and attitudes that is learned and shared among the group members 

 Discuss how Economic forces affect Marketing - Two Economic Forces - Macroeconomics conditions related to the marketplace and microeconomic factors such as consumer income 

Describe how technological changes can affect marketing - Technological changes can replace existing products or services. They can also drop the price of other products because it helps with production. Technology plays a massive role in marketing because of how much influence it can have on every market. 

Discuss the forms of competition that exist in a market - 4 types of competition - pure competition, monopolistic competition, oligopoly, and Monopoly. 

Key components of competition - the likelihood of new competitors, the power of buyers and suppliers, the presence of competitors, and possible substitutes. 

Explain how regulatory forces ensure competition and protect producers and consumers - Legislation ensures a competitive marketplace by having the Sherman antitrust act and Clayton act, copyright,s and patents. Consumers are protected by laws like the Lanham Act which allows trademarks. There is also self-regulation like the Better Business Bureau (BBB)

Identify factors that influence ethical and unethical marketing decisions -  4 factors affect ethical marketing decisions -  societal culture and norms, (2) business culture and industry practices, (3) corporate culture and expectations,  and  (4)  personal moral philosophy and ethical behavior.

Describe the different concepts of social responsibilities - Social responsibility is when a company is a part of a community and their actions reflect the group. There  are  three  concepts  of  social  responsibility: profit responsibility, stakeholder responsibility, and societal responsibility.

Sherman Antitrust Act - forbids actual monopolies 

 Clayton Act - forbids actions that are likely to lessen competition 

 4 generational Cohorts - baby boomers (1946-1964), Gen X (1965-1980), Gen Y (1981-1996), Post-millennium Generation (born between 1997 and 2010) 

Companies use Multicultural marketing teams to identify trends of different races and ethnicities actions and beliefs 

Disposable income is income after paying taxes 

Discretionary income is income after paying taxes and paying for necessities

 How does technology affect customer value? - technology impacts customers positively because it gives better prices and helps asses other products

In pure competition there are a large number of sellers 

The Federal Trade Commission monitors unfair business practices

The BBB uses a partner of code of conduct to have employees follow correct practices 

The Consumer Bill of Rights (1962)- These are the rights to safety, to be informed, to choose, and to be heard

Economic Espionage - these are illegal acts of trespassing, thefts, fraud, misrepresentation, and more to gain information about competitors

Moral idealism - a moral philosophy that consider some individual rights and actions as universal 

 Green Marketing - marketing efforts to produce, promote, and reclaim environmentally sensitive products

Sustainable development - conducting business in such a way that it keeps the natural environment while growing economically. Green marketing is a example 

• Chapter 4 - 

Describe the stages in the consumer purchase decision process - 

The purchase decision process consists of 5 stages - 1. Problem recognition - identifying the problem presented 2. Information search - remembering previous purchases as well as checking other sources 3. Alternative evaluation - sees if alternatives can satisfy the need  4. Purchase decision - from whom to buy and when to buy from 5. Postpurchase behavior - comparing product to alternatives and either satisfaction or dissatisfaction 

Distinguish among three variations of the consumer purchase decision process: extended, limited, and routine problem-solving -  

Extended - for high-involvement purchase decisions all five processes are used and a good margin of time goes into searching for alternatives. 

Limited - Consumers only seek some information or rely on a decision for the purchase process

Routine Problem-Solving -  use problem-solving skills - They recognize an issue, make a decision, and spend little effort on finding information

Identifying the major physiological influences on consumer behavior - 

Motivation - the energizing force that drives a need to be satisfied

Personality - a person's consistent behaviors to recurring situations

Perception - how someone consumes and interprets information and then creates a worldview on it 

Lifestyle AKA Physiographic - a mixture of demographics and psychology - focuses on how people spend their time and resources, what they think is important, and what they think of themselves

Identify the major Sociocultural influences on cultural behavior - 

Formal and informal relationships also affect consumer behavior 

Reference groups, social class, family, culture, and subculture 

What is the first stage in the consumer purchase decision process?

Problem Recognition – identifying a need 

What are the brands a consumer considers buying out of brands in product class called?

Consideration Set

What is the term for post-purchase anxiety?

Cognitive dissonance

The problem with the toro snow pup was a example of selefctive?

comprehension—consumers perceived the name to mean that Snow Pup was a toy that was too light to do any serious snow removal

What three additude change approaches are the most common? 

1. Change beliefs about the extent to which a brand has certain attributes 

2.  Change the perceived importance of these attributes 

3. 3. Add new attributes to the product 

What are the two forms of personal influence? 

1. Opinion relationship - people considered to be knowledgeable about particular products or services 

2. Word of mouth -  the influencing of people during conversations

Marketers are concerned about what type of reference groups?

Three reference groups - 

1. Associative groups - one to which a person actually belongs to that is structured around a brand and its relationship with the brand and individuals 

2. Aspiration Groups - groups people wish to be identified with or a part of

3. Dissociative groups - groups people wish to keep their distance from because of altering views or beliefs

What two challenges must marketers overcome when marketing to other ethnicities?

1. The diversity in subcultures that affect product preferences 

2. The language barrier that may lead to the translation of a product or commercial/promotion 

• Chapter 5 - 

Describe the key characteristics of organizational buying that make it different from consumer buying - There are seven major characteristics of organizational buying - These include demand char-acteristics, the size of the order or purchase, the number of potential  buyers,  buying  objectives,  buying  criteria,  buyer–seller relationships and supply partnerships, and multiple buy-ing  influences  within  organizations. Organzaitonal buying is also more formalized 

Explain how buying centers and buying situations influence organizational purchasing - 

A buying center consists of a group of individuals who share common goals, risks, and knowledge important to a purchase decision. Five specific roles that a person may play in a buying center include users, influencers, buyers, deciders, and gatekeepers. 

Distinguish among industrial, reseller, and government organizational markets - 

There  are  three  different  organizational  markets:  industrial, reseller, and government. 

Industrial - reprocess a product or service they buy before selling it to the next customer 

Reseller - wholesalers and retailers - buy physical products and sell them again without any reprocessing 

Government Agencies - at the federal, state, and local levels buy goods and services for constituents they serve 

Recognize the importance and nature of buying onlinein industrial, reseller and govnetment organizational markets - Sure! Here's a brief summary of the importance and nature of online buying in industrial, reseller, and government organizational markets:

### Industrial Markets

- Increases efficiency and cost savings.

- Provides access to a wider range of suppliers.

- Offers real-time information.

### Reseller Markets

- Enhances inventory management.

- Expands market reach.

- Ensures competitive pricing.

### Government Markets

- Improves transparency and accountability.

- Streamlines procurement processes.

- Achieves cost efficiency.

In summary, online buying boosts efficiency, cost savings, and informed decision-making across these markets.

Organizational Buyers are?

Are people, companies, manufacturers, wholesalers who buy products for their own use or resale 

What are the three main types of organizational buyers?

1. Industrial firms - reprocess a product before they sell again

2. Resellers - resell without and reprocessing

3. Government - governments who buy products and services for constituents they serve 

What one department is almost always represented by a person in the buying center?

Purchasing Department

What are the three types of buying situations or buy classes?

1. New Buy - first-time buy of product or service

2. Straight Rebuy - reorders an existing product from a list of acceptable suppliers 

3. Modified Rebuy -  an organization buying center changes product specifications, price, delivery schedule, or supplier.

What are e-marketplaces?

They are online trading communities that bring together buyers and suppliers organization to make real time exchange of info, money, products, adn services

In general, which type of online auction creates upward pressure on bid prices and which type creates downward pressure on bid prices?

Upward Preasure on price - traditional auction 

Downward pressure on price - Reverse auction 

– Chapter 7 – 

Identify the reason for conducting marketing research

To be successful, products must meet the wants and needs of potential buyers/customers. Marketing research reduces risk by providing vital information to marketers so that they can implement the information into marketing strategies.

Describe the five step marketing process that leads to marketing action 

Has five steps 

1. Define the problem - setting the research objectives and identify the possible marketing actions 

2. Devolp Research plan - involves specifying the constraints, identifying data needed for marketing decisions, and determining how to collect the data 

3. Collect the Relevant information - finding relevant secondary data( external and internal) and primary data (by observing and questioning customers). As well as using data mining and information technologies to trigger marketing actions 

4. Develop Findings from marketing research data collected - Analyzing and presenting the data found

5. Take marketing actions - involves marketing and implementing teh action recommendations and then evaluating the results 

Explain how marketing uses secondary and primary data 

Internal secondary data - inside the organization - like sales reports and customer comments 

External secondary data - created by other organizations - like the U.S. census bureau, manufacturer, retailers, and business and trade publications.

Primary data - collected directly for the product are obtained by observing or questioning people 

Discus the uses of observations, questionaries, panels, experiments, and newer data collection methods. 

Observations - neuromarketing and how there brains respond 

Questionaries - asking questions either in person or over the phone or online 

Panels - samples of customers that repeatedly measure customers to see if there behaviors change 

Experiments - using test markets to measure the effect of marketing variablessuch as prices or advertising on sales 

Newer Data collection methods - using social media 

Explain how data analytics and data mining lead to marketing Actions 

Data analytics, which uses specific queries or questions to guide analysis, transforms the data from marketing research into useful information. Data mining is the extraction of hidden data from a database to see statistical relationships

What is a sales forecast?

a prediction or estimate of a company's future sales revenue over a specific period. It is a critical component of business planning and financial management. 

Describe three approaches to developing a company’s sales forecast

1. Direct forecast  - estimating the value of a forecast with no intervening steps 

2. Lost-horse Forcast - starts with the last known value of the forecast, finds factors that could affect forecast, identifies if the factors have a positive or negative impact, and makes final forecast

3. Surverys of knowledgeable groups  - obtaining information such as the intentions of potential customers or estimates provided by salesforce 

What is marketing Research?

The process of defining marketing problem and opportunity, systematically collecting and anlyzing information, and recommending actions to reduce the risk of and therefore improve marketing decisions 

What are constraints, as they apply to developing a research plan?

Constraints on a decision are restrcitons placed on potential solutions to a problem, such as time and money. These set the parameters for research plan- due dates, budget, and so on

What is the difference between secondary and primary data?

• Secondary data are facts and figures that have already been recorded prior to the project. primary data are new facts and figures that are recorded for the project 

What are some advantages and disadvantages of secondary data?

Advantages - time saver, low cost, and greater level of detail 

Disadvantages - may be out of date, unspecific, or have definitions, categories, or age groups that are wrong for the project 

What is the difference between observational and questionnaire data?

Observational are figures and facts obtained by watching, either mechanically or inperson how people actually behave. Questionnaire data are facts and figures obtained by asking people about theri attitudes, awareness, intentions and bhaviors 

Which type of survey provides the greatest flexibility for asking prob-ing questions: mail, telephone, or personal interview?

Personal Interview 

What are the differences between a panel and an experiment?

 A panel is a sample of customers or stores form which research take a series of measurements. An experiment is obtaining information by manupulaitng factors under a controlled setting to test variables and figure out causes and effects

In evaluating marketing actions, what are two dimensions on which they should be elevated?

1. Evaluate the decision itself, which involves monitoring the marketplace to determine if  the action is necessary in the future 

2. Evaluate the decision process used to determine

   1. Whether the marketing research and analysis was affective or flawed

   2. Whether the process could be improved for future actions 

What are three type of sale forecasting techniques?

1. judgments of the decision maker who acts on  the  results  of  a  sales  forecast

2. surveys  of  knowledgeable groups, those who are likely to know something about future sales

3. statistical methods such as trend extrapolation, which in-volves extending a pattern observed in past data into the future.

How do you make a lost-horse forecast? 

To make a lost-horse forecast, begin with the last known value of the item being forecast, list the factors that could affect the forecast, assess whether they have a positive or negative impact, and then make the final forecast

• Cahpter 8 -   also have to do chapter 1 and 2 sometime 

Explain what market segmentation is and when to use it

Aggregating prospective buyer in two groups 

• Those with common needs 

• Those who will respond similarly to a marketing action

Identify the five steps involved in segmenting and targeting markets

1. Group buyers into segments  -  have similar characteristics and rtespod to marketing similarly 

2. Putting related products into meaningful groups 

3. organiza-tions  develop  a  market-product  grid  with  estimated  sizes  of markets in each of the market-product cells of the resulting table

4. Selecting the target market segments the organization should focus 

5. taking marketing mix actions—often in the form of a market-ing program—to reach the target market segments

Recognize the bases used to segment consumer and organizational (business) markets.

The four based used are

• Geographic 

• Demographic 

• Physcographic

• Behavioral 

• Organizaitonal Markets all use the same bases besides psychogrphic ones 

Develop a market product grid to identify a target market and recommended resulting action

Organizations use five key criteria to segment markets, whose groupings  appear  in  the  rows  of  the  market-product  grid. Groups of related products appear in the columns. After esti-mating  the  size  of  the  market  in  each  cell  in  the  grid,  they select  the  target  market  segments  on  which  to  focus.  They then  identify  marketing  mix  actions—often  in  a  marketing program—to reach the target market most efficiently

Explain how marketing managers position producers in the marketplace

Marketing managers often locate competing products on two-dimensional perceptual maps to visualize the products in the minds of consumers. They then try to position new products or  reposition  existing  products  in  this  space  to  attain  maxi-mum sales and profits

Market segementation invovles aggregating prospective buyers into groups that have two key characteristics. What are thet?

1. Common needs 

2. Respond similarly to marketing actions 

In terms of marketing segments and pridcuts, what are three market segmenting strategies?

1. One product multiple market segment 

2. Multiple product multiple markets segment 

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 demographical and behavioral bases of market segmentation?

Demographic  segmentation  is  based  on  some  objective physical (gender, race), measurable (age, income), or other classi-fication attribute (birth era, occupation) of prospective customers. Behavioral segmentation is based on some observable actions or attitudes by prospective customers—such as where they buy, what benefits they seek, 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 shows 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?

Possible criteria include 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?

In a market-product grid, marketing synergies (efficiencies in marketing to a market segment) run horizontally, while product synergies (efficiencies in research, development, and production) run vertically. Focusing on marketing synergies can reduce marketing costs but increase production costs due to the need for diverse products. Conversely, focusing on product synergies can save on production costs but increase marketing costs as different consumer needs must be addressed.

What is the difference between product positioning and product repositioning?

Product positioning refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products. Product repositioning involves 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 in two dimensions of location of products or brands in the minds of consumers. 

Marketers use perceptual maps to see how consumers perceive competing products or brands as well as their own product or brand. Then they can develop marketing actions to move their product or brand into ideal positioning.