Exam 8: Market Segmentation and Positioning

Marketing segmentation is:

A customized targeting strategy predominates in B2B markets (e.g. marketing research or advertising services) or consumer markets with high-value, highly customized products (e.g. purchase of a custom-made car).

This is the division of a market into different groups of customers with distinctly similar needs and offering requirements.

The ________ is customer-oriented, seeking to determine common customer needs and to identify market segments between which identifiable differences exist-segment heterogeneity-but within which similarities exist between members-member homogeneity.

The method by which whole markets are subdivided into different segments to allocate marketing programme activity is referred to as:

The method by which whole markets are subdivided into different segments is referred to as the STP process. This stands for Segmenting, Testing and Positioning.

In business to business markets, businesses may fail to overcome barriers encountered when implementing their segmentation plans. What are the identified barriers?

Understanding the complexity associated with the different attributes and brands can be made easier by developing a visual representation of each market known as:

A concentrated marketing strategy (or niche marketing strategy) is used where there are only a few market segments.

Key variables concern age, sex/gender or gender identity, occupation, level of education, religion, social class, and income characteristics. This is _______ ___ segmentation criterion.

Whilst market segmentation is a useful process for organizations to divide customers into distinct groups for resource allocation purposes, it has been criticized for the following reasons except:

ACORN breaks people into groups based on the postcodes within which they live, based on the following categories, except:

Marketing communications can be used in one of two main ways to position brands, namely to position a brand either functionally or expressively (symbolically). Examples of expressive positioning strategies include:

Using the family lifecycle concept, which of the following items would be least likely to be marketed to a young single working adult who is still living at home?

____________ can be used to position brands either functionally or expressively.

Mainstream brands tend to spring to mind when consumers think of the category.

Organizational characteristics, such as organizational size and location, are sometimes referred to as firmographics.

An example of a segmented market would be:

To segment consumer markets, markets can be classified according to behavioural, psychological and profile criteria. Demographic data is an example of psychological criteria for segmentation.

Perceptual mapping data reveal strengths and weaknesses that can help management to make strategic decisions about how to differentiate based on the attributes that matter the most to customers.