Market segmentation, targeting and positioning

Traditionally, mass marketing of a consumer product results in:

• the largest potential market for that product

• increased product prices due to the lack of differentiation and decreased competition

• easier channel selections

• fewer competitors because there are fewer markets

• lower profit margins

The major benefit of following an undifferentiated approach is:

• less competition

• cost economies

• greater profit

• greater consumer satisfaction

• broad product lines

A(n) ___________ market is characterized by a fairly narrowly defined market with a complete and distinct set of needs, and a willingness to pay a premium to meet those needs.

• local

• niche

• individual

• derived

• homogeneous

Which of the following is an example of individual marketing?

• the customization of a computer database to meet the needs of a client company

• the providing of a multi-use computer database software program that will perform nearly all the operations a typical company would need it to perform

• the development of database software designed specifically for healthcare professionals

• the identification of an unserved, small group of companies who need database software and the specific marketing activities aimed at this group

• the use of a web site where a customer reviews a product catalog, selects what is wanted, types in modifications desired, and places an order

The opposite of a market with homogeneous preference is a market with a ______________ preference.

• derived

• stratified

• diffused

• randomized

• clustered

The first step in market segmentation is:

• the determination of segment profitability

• needs-based segmentation

• segment identification

• the use of predetermined segment attractiveness criteria

• segment positioning

MicroFridge is a combination microwave, refrigerator, and freezer that is designed for people who are short on living space and need to make the best possible use of every inch of space they do have. MicroFridge uses a(n) ______________ segmentation strategy.

• user rate

• lifestyle

• family life cycle

• benefit

• occasion

In Fall 2002, Sun-Rype Products stocked grocery shelves across Canada with its new Fruit & Veggie bars. Its Blueberry & Orange bar combines orange juice concentrate and dried berries with an interesting blend of squash, carrots, broccoli, and other legumes. According to the bar's category manager, fruit and veggies are among the top 10 items consumers want to snack on. This product is the first to offer the health benefits of both. The combination of fruits and vegetables is the product's:

• brand identity

• maximarketing strategy

• unique selling proposition

• integrated marketing

• preemptive position in the mind of its users

Which of the following statements is true about positioning strategies?

• not all products can be differentiated.

• a product that is not positioned as superior, distinctive, preemptive, or affordable will succeed if it is implemented correctly.

• the end result of positioning is the successful creation of a market-focused value proposition.

• positioning strategies must stress real benefits or they will fail.

• all brand differentiation strategies are meaningful and worthwhile.

A small, private college advertises that, "Students will receive a Harvard quality education for a state university tuition." This is an example of _________________ positioning.

• quality/price

• benefit

• competitor

• use/application

• product category