Upgrade to remove ads
MKG 300 Chapter 4 BSU Prof. Wahlers
Terms in this set (25)
Which of the following statements is true of generic markets?
The generic market includes only three of four aspects of the product-market definition—customer needs, customer types, and geographic area. It does not include product type.
The complete product-market definition includes a four-part description: product type (type of good and type of service), customer (user) needs, customer types, and geographic area. A generic market description doesn't include any product-type terms.
It is sometimes hard to understand and define generic markets because
different product types may compete with each other.
It is sometimes hard to understand and define generic markets because even broadly different product types may compete with each other in such markets
Which of the following is a characteristic of a product-market?
It is a market with a broad set of customers who have a wide variety of needs.
It is a market where only tangible goods are sold.
It is a market with a single seller but multiple buyers.
It is a market in which sellers offer very similar methods of satisfying customer needs.
(A) All of these choices are characteristic of a product-market.
In contrast to a generic market, a product-market is a market where customers have very similar needs and sellers offer various close substitute ways of satisfying those needs. For instance, in the desk lamp market, all customers are seeking desk lamps and the products offered by sellers are variations on the basic concept of a desk lamp.
A generic market...
has customers with broadly similar needs.
often includes consumers who will satisfy the same need in quite different ways.
often involves sellers who compete in different product-markets.
often includes sellers who offer diverse ways of satisfying a need.
(A) has all of these characteristics.
A generic market is a market with broadly similar needs offering various, often diverse, ways of satisfying those needs. In generic markets, different product types may compete with each other. Customers in the generic market to cool off during a hot summer might buy air conditioners, ice cream, or a pool memberships.
A complete product-market definition includes product type, customer needs, customer types, and
A complete product-market definition includes product type, customer needs, customer types, and geographic area.
tries to aggregate individuals who have similar needs and characteristics.
Segmenting is the process of clustering people with similar needs into a "market segment." A market segment is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
The first step in the market segmentation process involves
naming broad product-markets.
Market segmentation is a two-step process. The first step involves naming broad product-markets. Once broad product-markets are identified, step two involves segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
When segmenting a broad product-market, it is especially important that marketers create segments
that are as large as possible.
The most important criteria for a good market segment is that it be operational, meaning that the firm is capable of applying it to identify customers and adjusting the marketing mix.
Which of the following represents a broad product-market within the generic market of outdoor adventures?
people who buy fly fishing equipment for fishing trips
People who buy fly fishing equipment constitute a broad product-market within the generic market of outdoor adventurers. It is a narrower submarket of the generic market of outdoor adventurers. "Loyal customers of Able brand fly fishing reels" constitutes the narrowest market segment in the list and represents a single homogeneous target market, not a broad product-market.
Having segmented its broad product-market, Martinez Corp. has decided to treat its two chosen submarkets as separate target markets, with each requiring different marketing mixes. Which of the following approaches to developing market-oriented strategies is Martinez Corp. applying in this scenario?
multiple target market approach
The multiple target market approach involves segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix.
Target marketers who are "combiners"
use one marketing mix to appeal to multiple submarkets, even though the submarkets have some distinct differences.
Target marketers known as "combiners" try to increase the size of their target market by treating two or more different segments into single market and offering it a single marketing mix. "Combiners" believe that one marketing mix will work well enough with these multiple submarkets, even though the different segments within the target market have real differences. While this approach makes efficient use of resources, combiners do not get to "fine-tune" their marketing mixes to meet the needs of their submarkets as effectively as they might desire.
Which of the following statements is true of using a combined target market approach to developing market-oriented strategies?
This approach is especially attractive for firms with limited resources.
A combined target market approach may help achieve some economies of scale. It may also require less investment than developing different marketing mixes for different segments—making it especially attractive for firms with limited resources.
The balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment is
Profit is the balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment.
Segmenting and combining are two alternate approaches to developing market-oriented strategies. Which of the following statements concerning these approaches is true?
A combiner looks at various submarkets for similarities rather than differences.
Combiners try to increase the size of their target market(s) by combining two or more segments and pleasing a relatively large group of people fairly well. They look at various submarkets for similarities rather than differences. Segmenters try to appeal to specific market segments using unique marketing mixes for each segment. They look for differences and aim to satisfy a few people very well.
When creating a marketing strategy and engaging in market segmentation, the ______ dimensions are the dimensions that define which potential customers are included in a segment.
Regardless of whether customers are final consumers or organizations, segmenting a broad product-market usually requires using several different dimensions at the same time. Qualifying dimensions are those used to define which customers are included in a product-market.
In a customer survey conducted by Radwheel Motors, it was found that customers purchased the company's cars primarily because Radwheel cars were a status symbol in the survey population. By which type of marketing dimension were Radwheel's purchasers motivated?
In this context, customers' purchases were encouraged by a determining dimension. Determining dimensions are those that actually affect the customer's purchase of a specific product or brand in a product-market.
What is a buyer persona?
a detailed description of a typical, but fictional customer
Buyer personas are detailed descriptions of fictional people that are meant to represent typical customers within a segment.
Which of the following types of segmenting dimensions are most helpful in understanding how customers in a target market decide exactly which brands of product to buy?
Determining dimensions are those that actually affect the customer's purchase of a specific product or brand in a product- market.
Workathome Inc. offers to help people to establish and manage their own online businesses, a service for which it charges a fee. Out of several possible market segments, the firm has chosen to target people with a limited understanding of the Internet and poor financial literacy. This is an example of using
potentially unethical segmenting.
Targeting customers who are a disadvantage when dealing with the firm and who are unlikely to see the negative effects of their own choices is often considered to be an unethical use of segmenting.
Which of the following statements about clustering techniques for segmenting is true?
A variation of the clustering approach relies on customer relationship management.
A variation of the clustering approach relies on customer relationship management (CRM), where the seller fine-tunes the marketing effort with information from a detailed customer database.
Which of the following techniques enables marketers to develop "segments of one" where each customer is targeted with their own marketing mix?
customer relationship management
Customer relationship management uses detailed information about customers to fine-tune the marketing mix that different groups of customers receive. In some cases it can even be used to create a marketing mix that is personalized for individual customers.
A _____ analysis helps managers understand how customers see their market.
A positioning analysis helps managers understand how customers see their market. It is a visual aid to understanding a product-market.
Positioning analysis as it is usually practiced is not well-suited to identifying
basic shifts in the market.
Positioning analyses are usually product-oriented, focused on specific product features and brands that are close competitors in a given product-market. As such, they may overlook basic shifts that affect an entire market. For instance, a position analysis comparing different beer brands would not capture a shift among consumers toward soft drinks.
When the target customers of a specific brand are not viewing it in the desired way, the brand ideally needs to be
When research shows the marketing manager that target customers are not viewing the brand in the desired way, it needs to be repositioned. Changing customers' perceptions of a brand is not easy—and requires changes to the marketing mix.
The purpose of a positioning statement is to
provide focus for a marketing mix by concisely stating its most important features.
A positioning statement concisely identifies the most important features of a marketing mix, thereby helping everyone working on that marketing mix to focus on what is most important.
THIS SET IS OFTEN IN FOLDERS WITH...
Marketing chapter 6
MKG 300 Chapter 3 BSU Prof. Wahlers
Chapter 3 MKG 300
YOU MIGHT ALSO LIKE...
Marketing Chapter 4
Marketing Chapter 4
MKT chapter 4
Marketing chapter 4
OTHER SETS BY THIS CREATOR
FCPM 104 Test 2
FCPM 104 Test 1
RMI 270 Financial Planning Practice
RMI 270 BSU Ch 16 Practice
OTHER QUIZLET SETS
Essentials of Marketing - Test 2 - Lecture 4 Slide…
Marketing final chap 1-4