Foundation of Marketing Peregrine Global/
108 Q&A/ A+ Score Solution.
STP - Answer: Marketing Framework Part 2
Strategic Marketing Planning
Segmentation: Customers aren't all the same; they vary in their preferences, needs, and
resources.
Targeting: Attracting some of those customers makes better sense than going after others.
Positioning: Communicate your benefits clearly to your intended customers.
Refers to the fact that businesses or organizations are unlikely to be all things to all people, so it
is best to identify groups or segments of customers who share similar needs and wants. When
the different segments' preferences are understood, then the organization can identify the
targeted segments.
Page 1 of 21
,4 P's - Answer: Marketing Framework Part 3
Marketing Tactics
Product: Will customers want what your company is prepared to produce?
Price: Will customers pay what you would like to charge?
Place: Where and how will customers purchase your market offering?
Promotion: What can you tell your customers, or do for them, to entice them to purchase?
Then starts marketing efforts, A relationship is developed with that target segment by
positioning products in the marketplace via the questions above
Convenience purchases - Answer: Staples (standard, frequently consumed goods such as bread
or gas) and impulse purchases (candy or National Enquirer available near the check-out stand).
(B2C low)
Shopping purchases - Answer: Going online to Citysearch.com to find a restaurant and make
reservations when heading out of town. (B2C moderate)
Specialty purchases - Answer: A new car, fashion shows, an expensive laptop computer. (B2C
high)
Straight rebuy - Answer: You're out of toothpaste and you mindlessly pop a tube of your usual
brand into your basket. (B2B low)
Modified rebuy - Answer: You reach for your brand of toothpaste but you try a new flavor. ( B2B
Moderate)
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, New buy - Answer: You're buying teeth whitening strips for the first time and think what
attributes must you consider. (B2B High)
Low customer involvement - Answer: Customers don't care and won't spend time thinking
about brands. They will typically be somewhat price sensitive.
Moderate customer involvement - Answer: Some effort is expended prior to purchase to obtain
good value.
High customer involvement - Answer: For expensive purchases, brand, uniqueness and quality
matter.
Customer Involvement - Answer: It's not the type of product or purchase that matters. It's the
type of customer behavior (consumer or business level of involvement) that is relevant and the
marketing actions and reactions.
Lexicographic method - Answer: A customer compares brands by the most important attributes
or dimensions. Brands that make the cut on the first dimension go into the customer's
consideration set. The customer then compares the brand on the next important attribute and
so forth, until only one brand is left.
Average method - Answer: This method uses averages so one attribute can't make or break a
brand. If a brand is strong on one attribute and average on another, it will still dominate a brand
that was just average on all its attributes.
Attribute importance - Answer: Models can be made more complex by bringing in weights to
express how important the attributes are to the customer. Those important weights underpin
how segments of customers differ.
Page 3 of 21
108 Q&A/ A+ Score Solution.
STP - Answer: Marketing Framework Part 2
Strategic Marketing Planning
Segmentation: Customers aren't all the same; they vary in their preferences, needs, and
resources.
Targeting: Attracting some of those customers makes better sense than going after others.
Positioning: Communicate your benefits clearly to your intended customers.
Refers to the fact that businesses or organizations are unlikely to be all things to all people, so it
is best to identify groups or segments of customers who share similar needs and wants. When
the different segments' preferences are understood, then the organization can identify the
targeted segments.
Page 1 of 21
,4 P's - Answer: Marketing Framework Part 3
Marketing Tactics
Product: Will customers want what your company is prepared to produce?
Price: Will customers pay what you would like to charge?
Place: Where and how will customers purchase your market offering?
Promotion: What can you tell your customers, or do for them, to entice them to purchase?
Then starts marketing efforts, A relationship is developed with that target segment by
positioning products in the marketplace via the questions above
Convenience purchases - Answer: Staples (standard, frequently consumed goods such as bread
or gas) and impulse purchases (candy or National Enquirer available near the check-out stand).
(B2C low)
Shopping purchases - Answer: Going online to Citysearch.com to find a restaurant and make
reservations when heading out of town. (B2C moderate)
Specialty purchases - Answer: A new car, fashion shows, an expensive laptop computer. (B2C
high)
Straight rebuy - Answer: You're out of toothpaste and you mindlessly pop a tube of your usual
brand into your basket. (B2B low)
Modified rebuy - Answer: You reach for your brand of toothpaste but you try a new flavor. ( B2B
Moderate)
Page 2 of 21
, New buy - Answer: You're buying teeth whitening strips for the first time and think what
attributes must you consider. (B2B High)
Low customer involvement - Answer: Customers don't care and won't spend time thinking
about brands. They will typically be somewhat price sensitive.
Moderate customer involvement - Answer: Some effort is expended prior to purchase to obtain
good value.
High customer involvement - Answer: For expensive purchases, brand, uniqueness and quality
matter.
Customer Involvement - Answer: It's not the type of product or purchase that matters. It's the
type of customer behavior (consumer or business level of involvement) that is relevant and the
marketing actions and reactions.
Lexicographic method - Answer: A customer compares brands by the most important attributes
or dimensions. Brands that make the cut on the first dimension go into the customer's
consideration set. The customer then compares the brand on the next important attribute and
so forth, until only one brand is left.
Average method - Answer: This method uses averages so one attribute can't make or break a
brand. If a brand is strong on one attribute and average on another, it will still dominate a brand
that was just average on all its attributes.
Attribute importance - Answer: Models can be made more complex by bringing in weights to
express how important the attributes are to the customer. Those important weights underpin
how segments of customers differ.
Page 3 of 21
