Exam 2: Consumer Focused Strategy: Segmentation and Positioning

Geo-dernographic segmentation is sometimes called zip-code marketing.

Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition.

Imagine you work for Jonesville, Inc., a mid-sized company specializing in the manufacturing and marketing of high­ end, high-performance mountain bikes.Jonesville, Inc.recently hired an outside market research firm to assess its positioning strategy and make recommendations about future positioning strategies.The research firm submitted a perceptual map.The map's x-axis (abscissa) reflects higher quality when moving to the right, and they-axis (ordinate) reflects higher price when moving up and positioned Jonesville in the upper right-hand quadrant.The research firm recommends that Jonesville position another line of high-end mountain bikes in the lower right hand quadrant where there are no competitors and there appears to be a gap in the market. a.Your boss doesn't really understand the map.Explain to your boss what the map means. b.Evaluate the research firm's logic for the new positioning location (i.e., identify the logic's flaw).

is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, or loyalty.

Targeting is the process of communicating with our market segments through the use of marketing mix variables in such a way as to help consumers differentiate our product from our competition.

Market size is a key factor that is overlooked when a manager commits the majority fallacy.

What are the key assumptions that underlie market segmentation?

Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles ofPantene brand shampoo.This strategy represents segments based on geo-demographics.

The slogan, "Subway is fresh!" is an example of positioning by core benefit.

What is psychographies and how are markets segmented using psychographies?

The slogan, "Close-Up Toothpaste- Kissably Fresh Breath!" is an example of positioning by product user.

Market aggregation is the opposite of market segmentation.

The PRIZM segmentation model discussed in your readings is based in what market segmentation strategy?

The first brand to enter a new market often enjoys a long-term consumer preference advantage over follower brands.This phenomenon is known as what?

Premium priciug, which is sometimes called prestige pricing, is priciug a brand at the top end of a product category's pnce range.

occurs when an organization chooses to aggregate the market and offer the same product or service and marketing mix to all consumers.

Which of the following statements demonstrates the formation of a segment based on benefits sought?

In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation.

According to the price segmentation model in your readings, which segment represents a combination oflow "perceived pain" and high "perceived value" and is a highly desirable segment to marketers?

Consumers tend to use price as a gauge of quality.This phenomenon is called the price-quality heuristic.