HAPTER 7

 

MARKET SEGMENTATION, TARGETING, AND POSITIONING

FOR COMPETITIVE ADVANTAGE

 

 

MULTIPLE CHOICE QUESTIONS

 

1.  At one time, firms scattered their marketing efforts (a “shotgun” approach) to reach

consumers.  Today, a firm is more likely to use:

a.  a “bazooka” approach, where special effects are used to “explode” into the buyer’s

consciousness.

b.  a “knife” approach, where the firm tries to “cut” to the most important product

advantage.

c.  a “rifle” approach, where the firm focuses on the buyers who have greater

interest in the values that the firm creates best.

d.  a “pistol” approach, where the firm realizes that it has multiple chances to gain

consumer interest.

 

2.  ________________ is the process of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

a.   Mass marketing

b.   Market segmentation

c.   Target marketing

d.   Market positioning

 

3.   __________________ is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

a.   Mass marketing

b.   Market segmentation

c.   Market targeting

d.   Market positioning

 

 

4.   Setting the competitive positioning for the product and creating a detailed marketing mix is called:

a.   mass marketing.

b.   target marketing.

c.   market segmentation.

d.   marketing positioning.

 

 

5.  During which step of the marketing segmentation, targeting, and positioning process

does the firm “develop a marketing mix for each segment?”

a.  market segmentation

b.  market targeting

c.  market positioning

d.  The firm does not go through the “development” during any of the above steps.

 

 

6.  During one of the steps in the marketing segmentation, targeting, and positioning

process, the marketer develops measures of segment attractiveness.  This procedure

belongs in the category of:

a.  market segmentation.

b.  market targeting.

c.  market massing.

d.  market positioning.

 

 

7.  When companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently with products and services that match their unique needs, they are conducting a ___________________ process.

a.   marketing aggregation

b.   marketing positioning

c.   marketing target

d.   marketing segmentation

 

8.  Market segmentation can be carried out at several different levels.  Which of the

following WOULD NOT BE among these levels?

a.  micromarketing

b.  segment marketing

c.  competition marketing

d.  niche marketing

 

9.  Another word for complete segmentation is:

a.  macromarketing.

b.  micromarketing.

c.  niche marketing.

d.  mass marketing.

 

10. For most of the 20th century, firms practiced which of the following forms of

marketing?

a.  mass marketing

b.  micromarketing

c.  niche marketing

d.  segment marketing

 

11. Which of the following marketers epitomized the mass marketing strategy?

a.   Henry Ford

b.   Bill Gates

c.   F.W. Woolworth

d.   Thomas A. Edison

 

12.Which of the following statements is closest to the traditional argument for mass marketing?

a.   Find a need and fill it.

b.   The largest potential market can lead to the lowest costs, which translates into either lower prices or higher margins.

c.   The rifle approach rarely hits what it is aiming at.

d.   The consumer is king.  Long live the king.

 

13.Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments is called _________________.

a.   niche marketing

b.   mass marketing

c.   segment marketing

d.   micromarketing

 

14.When General Motors designs specific models for different income and age groups, it is practicing which of the following marketing formats?

a.   micromarketing

b.   macromarketing

c.   mass marketing

d.   segment marketing

 

15.Segment marketing offers several benefits over mass marketing.  All of the following would be among those benefits EXCEPT:

a.   the company can market more efficiently and target its programs toward only those consumers that it can serve best.

b.   the company can fine-tune its programs to meet the needs of carefully defined segments.

c.   the company can reduce costs because of the ability to sell to customers one-on-one.

d.   the company may face fewer competitors if fewer competitors are focusing on the company’s chosen market segment.

 

16.A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits.

a.   micromarketing

b.   niche marketing

c.   mass marketing

d.   segment marketing

 

17.As an example of _______________, a company could build sport utility vehicles and direct marketing efforts towards the luxury SUV market (as does Lexus).

a.   micromarketing

b.   niche marketing

c.   mass marketing

d.   segment marketing

 

18. American Express offers not only its traditional green cards but also gold cards,

corporate cards, and even a black card, called the Centurian, with a $1,000 annual

fee aimed at a small group of “superpremium customers.”  Which of the following

marketing efforts is American Express following with their credit card policies?

a.  macromarketing

b.  segment marketing

c.  niche marketing

d.  self-marketing

 

 

19._________________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

a.   Niche marketing

b.   Micromarketing

c.   Segment marketing

d.   Mass marketing

 

20. Micromarketing includes:

a.  segment marketing and niche marketing.

b.  mass marketing and demographic marketing.

c.  local marketing and individual marketing.

d.  individual marketing and self-marketing.

 

21. ______________ involves tailoring brands and promotions to the needs and wants of specific small groups such as cities, neighborhoods, and even specific stores.

a.   Niche marketing

b.   Local marketing

c.   Detail marketing

d.   Individual marketing

 

22.All of the following are considered to be drawbacks of local marketing EXCEPT:

a.   it can drive up manufacturing and marketing costs by reducing economies of scale.

b.   it can create logistical problems when the company tries to meet varied requirements.

c.   it can attract unwanted competition.

d.   it can dilute the brand’s overall image.

 

23.________________ is tailoring products and marketing programs to the needs and preferences of individual customers.

a.   Niche marketing

b.   Local marketing

c.   Self-marketing marketing

d.   Individual marketing

 

 

24. Individual marketing is known by a variety of names.  All of the following would

appropriately be called individual marketing EXCEPT:

a.  mono-marketing.

b.  one-to-one marketing.

c.  customized marketing.

d.  markets-of-one marketing.

 

 

25.______________ is the process through which firms interact one-to-one with

masses of customers to create customer-unique value by designing products and

services tailor-made to individual needs.

a.   Mass marketing

b.   Detail marketing

c.   Mass globalization

d.   Mass customization

 

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MKTG 2150 Final Project – Marketing Practice Simulation (we know the name is terrible)

Winter 2018 – 25% of final grade

 

In teams of 3-4 we will play the McGraw Hill Marketing Practice Simulation that was included with your book purchase. There are many benefits to using a simulation including:

· the ability to learn through performing an action in order to get to a certain outcome,

· the improved retention of knowledge and its applications with experience of integrating the concepts learned in class and applying them in a strategically consistent manner,

· the benefit of consistent, constant, and immediate feedback,

· It is really fun!

 

There are three elements to your completion of this project:

 

1. 2 page document outlining your team’s original strategy and the reasoning behind your decisions, this is worth 15 points. To complete this it is important to read the guides and play the tutorial games provided to you.

2. Playing the simulation for at least 15 rounds this represents 10 points dependent on your placing. The ultimate goal is to make the most money.

3. Final Presentation where you will create the promotional campaign for your product and provide an overview of your final position. This is worth 75 points of your final grade.

Part 1

 

The document outlining your initial strategy for the simulation will include the following:

(Hint: approx. 1 paragraph for each point)

· Introduction and conclusion

· Discussion of each strategic decision including:

· Segment chosen and why

· Product features and how they meet the needs of the segment

· Pricing strategy, actual price and margin

· Distribution decisions with reasoning

· Communications decisions both message and media

· Approximately 2 pages, organized, edited, single spaced, 12 point font, stapled with a cover page with first and last names of all contributing group members.

 

This document is due at the beginning of class on the day we start the game. It is essentially your first set of decisions so it is important that everyone on the team agrees. You will have opportunity to practice before the simulation begins!

 

Part 2

 

Game on! We will play about 15 rounds as per the class schedule. The top team based on the Total Net Profit over the course of the game. Top team gets 10, second team 9 and so on. Everyone in the group must be in class on the days that we are playing the game.

 

Missing class and not supporting your team will result in a reduced grade of 10% per occurrence, this includes game and project preparation classes.

 

 

 

 

 

Part 3

 

This is where we put together all that we have learned and apply the concepts learned during the course and simulation. A 10 minute presentation will be created and practiced that illustrates your final results from the simulation and your creative department’s work on creating an effective promotional campaign. Your group will create an integrated marketing communication strategy, decide upon the elements required (see text), develop an appeal, and design and produce the creative elements (actual ads, social media, public relations, sponsorship, sales promotions and direct pieces). It is important that you make clear the goals of your plan and explain how success will be measured.

 

The format of the presentation will be:

 

· Created for an audience of Marketing Managers who you wish to approve the launching of your IMC plan.

· 10 minutes + questions

· Evidence of IMC – ALL strategies consistent and relate to overall plan

· 15-20 slides created in PP, Google slides, Prezi or any format that you would like.

· Slides will be primarily images with very few words

· Presentation will be practiced and professional

· Presenters will be dressed in business attire as discussed in class or appropriate costumes

· Presentations will be interesting and awesome

· Bonus marks for those judged the most awesome by their peers (1st place – 5 marks, 2nd place – 3 marks, 3rd place – 1 mark)

· Will include the information and elements outlined below – these are guidelines

 

Suggested Slides and Content of Presentation:

Introduction

Game summary and key learning from simulation

Target market

Objective/Overall Appeal

Packaging – sample or visual of tag

Advertising strategy – visual sample of actual ad, where, why and timing (Be specific)

Direct Marketing – Social Media plan – visual, where, why, how do you get consumers engaged, timing

Public Relations strategy – what, where, when

Event Sponsorship – what, where, when

Sales Promotion – visual, offer, where, timing

Website mock-up

Schedule of timing in table format

Conclusion

References

 

All students are required to be present for all presentations to act as judges and support their peers. Failure to hand in an individual voting form at the end of presentations will result in an individual reduced grade on the project.

 

 

 

 

MKTG 2150 Final Project Presentation

Group name: ____________________________________________________________________

Content (Steak)	Score	Comments
· Game Overview & Decisions · Final Decisions	1 2 3 4 5 6 7 8 9 10
Integrated Marketing Communication Campaign · Clear description of target market · Campaign clearly described and justified including appeal and creative themes · Creation and use of consistent brand identity · Packaging – eg or visual of tag · Advertising strategy – visual sample of actual ad, where, why and timing · Direct Marketing Social Media plan – visual, where, why, how do you get consumers engaged, timing · Public Relations strategy – what, where, when · Event Sponsorship – what, where, when · Sales Promotion – visual, offer, where, timing · Website mockup	1 2 3 4 5 1 2 3 4 5     1 2 3 4 5   1 2 3 4 5 1 2 3 4 5   1 2 3 4 5     1 2 3 4 5   1 2 3 4 5   1 2 3 4 5   1 2 3 4 5
Media Plan and schedule · Media chosen consistent with campaign and audience · schedule justified	1 2 3 4 5   1 2 3 4 5
References	1 2 3 4 5
Communication and Persuasion
Introduction captures attention and manages expectations	1 2 3 4 5
Timed perfectly using format · 10 minutes and 20 slides	1 2 3 4 5
Stunning, persuasive visuals- Slides	1 2 3 4 5
Effective Platform Skills -obviously well-rehearsed	1 2 3 4 5
Conclusion – Ends on a high, persuasive note	1 2 3 4 5
Total	/100

 

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