MKTG 303 - CHAPTER 9 & 10 : Segmentation, Targeting, and Positioning (STP) ; Marketing Research Flashcards

Flashcard Set: Chapter 9 – Segmentation, Targeting, and Positioning (STP)

1. The STP Process

Front: What are the five steps of the STP process?
Back:

1. Establish overall strategy (align with company mission and SWOT).

2. Use segmentation methods (divide market into groups).

3. Evaluate segment attractiveness (assess profitability and reachability).

4. Select a target market (choose a targeting strategy).

5. Develop positioning strategy (define brand perception).

2. Market Segmentation Methods (Exhibit 9.2)

Front: What are the six segmentation methods?
Back:

1. Geographic → Based on location (country, city, zip code).

2. Demographic → Age, gender, income, education.

3. Psychographic → Lifestyle, values (VALS Model).

4. Benefit → Groups consumers by the benefits they seek.

5. Behavioral → Based on product usage (loyalty, occasion).

6. Geodemographic → Combination of geographic, demographic, and lifestyle factors.

Front: What is the most common segmentation method?
Back: Demographic segmentation → Easy to measure (age, income, gender).

Front: What is behavioral segmentation?
Back: Dividing consumers by purchase behavior, such as loyalty (frequent customers) or occasions (holidays, weddings).

3. Evaluating Segment Attractiveness (5 Key Factors)

Front: What are the five factors for evaluating segment attractiveness?
Back:

1. Identifiable → Can we distinguish the segment?

2. Substantial → Is it large enough to be profitable?

3. Reachable → Can we communicate and distribute to them?

4. Responsive → Will they react positively to our product?

5. Profitable → Will they generate revenue long-term?

4. Targeting Strategies (Exhibit 9.6)

Front: What are the four targeting strategies?
Back:

1. Undifferentiated (Mass Marketing) → One product for everyone.

2. Differentiated → Multiple products for different segments.

3. Concentrated (Niche) → Focus on one specific segment.

4. Micromarketing (One-to-One) → Personalized marketing.

Front: What is an example of undifferentiated marketing?
Back: Salt, sugar, basic household goods → No need for customization.

Front: What is an example of differentiated marketing?
Back: Nike → Different shoes for runners, basketball players, and casual wearers.

Front: What is an example of concentrated (niche) marketing?
Back: Rolex → Only targets high-end luxury watch buyers.

Front: What is an example of micromarketing?
Back: Custom Nike shoes → Personalized products for individuals.

5. Positioning Strategy & Value Proposition (Exhibit 9.8)

Front: What is positioning?
Back: Defining how a brand is perceived in the consumer’s mind compared to competitors.

Front: What is a value proposition?
Back: Explains why customers should buy a product, focusing on benefits and differentiation.

Front: What are the four positioning methods?
Back:

1. Value-Based → Best price vs. quality (e.g., Walmart = low prices).

2. Salient Attributes → Key product features (e.g., Volvo = safety).

3. Symbol Positioning → Brand icons (e.g., Nike Swoosh, McDonald's Golden Arches).

4. Competition-Based → Directly compares with competitors (e.g., Pepsi vs. Coke).

6. Perceptual Mapping (Exhibit 9.9)

Front: What is a perceptual map?
Back: A visual representation of how consumers perceive brands/products.

Front: What are the six steps to creating a perceptual map?
Back:

1. Identify consumer perceptions of brands.

2. Determine the ideal market position.

3. Identify competitor positions.

4. Analyze consumer preferences.

5. Select the best positioning strategy.

6. Monitor and adjust as needed.

Front: How can a company reposition itself using a perceptual map?
Back: Adjust product attributes or marketing to shift consumer perception (e.g., Gatorade repositioned itself from a sports drink to a healthy lifestyle beverage).

Final Check: Does This Cover Everything? ✅

✅ STP Process (5 Steps)
✅ Market Segmentation Methods (6 Types)
✅ Evaluating Segment Attractiveness (5 Factors)
✅ Targeting Strategies (Undifferentiated, Differentiated, Concentrated, Micromarketing)
✅ Positioning Strategies & Value Proposition (4 Methods)
✅ Perceptual Mapping (6 Steps, Examples)

This flashcard set fully prepares you for your Chapter 9 exam! 🚀💯

CHAPTER 10: Marketing Research Flashcards

Front: What are the five steps in the marketing research process? Back: 1. Define Objectives and Research Needs
2. Design the Research
3. Collect the Data
4. Analyze Data and Develop Insights
5. Develop and Implement an Action Plan

Front: What is secondary data? Back: Data collected before the research project. Examples: Census reports, sales invoices, industry reports.

Front: What are the two types of secondary data? Back:

1. External – Syndicated data, scanner data, panel data.

2. Internal – Data warehouses, data mining, customer databases.

Front: What is primary data? Back: Data collected specifically for the research project. Examples: Surveys, focus groups, in-depth interviews.

Front: What are the types of qualitative research? Back:

1. Observation – Tracking customer behavior.

2. Social Media – Sentiment analysis, online communities.

3. In-Depth Interviews – One-on-one questioning.

4. Focus Groups – Small moderated discussions.

Front: What are the types of quantitative research? Back:

1. Survey Research – Most common method, structured/unstructured questions.

2. Panel and Scanner Research – Consumer purchasing data.

3. Experimental Research – Tests causal relationships between variables.

Front: What is the difference between data and information? Back: Data are raw numbers and facts, while information is analyzed and meaningful for decision-making.

Front: What are the advantages of secondary research? Back:

• Saves time and money.

• Easily accessible.

• Good for broad market analysis.

Front: What are the disadvantages of secondary research? Back:

• May not be specific or recent.

• Potential bias in data collection.

• Might not address research needs directly.

Front: What are the advantages of primary research? Back:

• Tailored to specific research needs.

• Provides new and detailed insights.

• Offers behavioral data not available in secondary sources.

Front: What are the disadvantages of primary research? Back:

• Expensive and time-consuming.

• Requires proper expertise to conduct effectively.

Front: What ethical guidelines does the AMA set for marketing research? Back:

1. No selling or fundraising disguised as research.

2. Maintain research integrity (no misleading data).

3. Fair treatment of clients and participants.

Front: What are some ethical concerns in marketing research? Back:

• Use of facial recognition software.

• Tracking consumer behavior without consent.

• Data privacy concerns.

Front: What is Big Data in marketing research? Back: Large, complex data sets collected from multiple sources (transactions, social media, CRM systems).

Front: What is the purpose of data mining? Back: To analyze large data sets and extract useful patterns for marketing decision-making.

Front: What is a focus group? Back: A small group (8-12 people) discussing a product or service with a trained moderator.

Front: What is experimental research? Back: Research that manipulates variables to test cause-and-effect relationships.

Front: What are structured vs. unstructured questions in survey research? Back:

• Structured Questions: Fixed response options (e.g., multiple choice).

• Unstructured Questions: Open-ended responses (e.g., "What do you think about this product?").

Front: What should be avoided when designing a questionnaire? Back:

• Leading questions

• Double-barreled questions

• Sensitive questions (unless necessary)

• Questions respondents cannot easily answer

Front: What is sentiment mining? Back: Analyzing social media data to understand public sentiment on a product or brand.

Front: What is the purpose of marketing research? Back: To systematically collect, analyze, and interpret data for making informed marketing decisions.

Study these flashcards, and you’ll be well-prepared for your exam! 🚀