7/4/25, 9:26
PM
MBA 706 - Exam 3 Questions and answers with
complete solutions verified latest update graded a++
Terms in this set (128)
The process of dividing consumers into groups with similar consumer
Market Segmentation
characteristics and product needs.
Allows managers to break the market into small manageable groups, so that firms
Market Segmentation
can tailor their offerings to satisfy different needs and wants.
Undifferentiated (Mass Marketing), Differentiated (Product-Variety), Concentrated
Three Marketing Strategies
(Target)
Undifferentiated (Mass Marketing) Firms sell a single product (with same marketing approach) to all consumers.
Advantage to Undifferentiated Marketing Economies of scale in production, promotion, and distribution
Disadvantage to Undifferentiated Intense competition and more sophisticated consumers
Marketing
Example of Undifferentiated Marketing Ford's Model T, Black & Decker
Firms provide a wide variety of differentiated offerings to different segments
Differentiated (Product-Variety Marketing)
(sometimes to all consumers).
Advantage of Differentiated Marketing Greater variety to consumers
Disadvantage of Differentiated Marketing Increased Costs
Example of Differentiated Marketing Coca-Cola
Firms identify major market segments, and then target a single segment with a single
Concentrated (Target) Marketing
marketing mix.
Concentrated effort to that specific segment; control cost to appeal only to that
Advantage of Concentrated Marketing
primary target segment.
Disadvantage of Concentrated Marketing Possibility of missed opportunities; vulnerable to competition.
Example of Concentrated Marketing Piano Maker
Multiple Segmentation Firms target different segments with a unique marketing mix for each segment.
1. Survey Stage
Procedures of Segmentation 2. Analysis Stage
3.Profiling Stage
Survey Stage understand consumer motivations, attitudes, and behavior
Analysis Stage identify consumer groups with similar characteristics
Profile each group in terms of their attitudes, behavior, demographics,
Profiling Stage
psychographics and media habits
Factors affecting the feasibility of A marketing segment must be: measurable, accessible, substantial, unique,
segmentation appropriate, and stable
• Geographic and geodemographic
• Demographic
Bases for Segmentation
• Behavioral
• Psychographic
One of the easiest and most commonly used methods. Markets are divided into
Geographic
groups based on region, climate, population density.
1/
5
, 7/4/25, 9:26
PM
Combine geographic and demographic factors. Target consumers in particular areas
Geodemographic
with similar behavior patterns - "Birds of a feather flock together"
Markets are divided using demographic variables such as income, age, gender,
Demographic educational attainment, occupation, religion, race, nationality, family/household
characteristics, etc.
Markets are divided based on behavioral measures such as attitudes, knowledge,
Behavioral
benefits sought, willingness to innovate, loyalty status, usage rates, etc.
Based on the benefits that consumers seek from a product. Ex: Toothpaste
Benefit Segmentation
segmentation based on benefits like teeth whitening, cavity protection, etc.
Markets can be divided on the basis of user status, including non-users, first-
User Status
time users, and regular users.
Markets are divided on the basis of the extent and depth of their loyalty to particular
Loyalty Status/Brand Enthusiasm
brands or stores. Ex: Airline frequent flyer programs.
Markets are divided using psychographic characteristics such as personality,
Psychographic value, lifestyle, etc. Ex: Car manufacturers; Gap (BR, Gap, Old Navy, Athleta, Hill City,
Janie and Jack).
Size and growth potential of each segment, structural attractiveness, organization's
Factors to consider after segmentation
objectives and resources
• Single segment concentration
• Selective specialization
Five patterns of market coverage • Product specialization
• Market specialization
• Full market coverage
Firm focuses on a single segment. Very high-risk strategy, but usually works well for
Single Segment Concentration
small companies. Can develop a strong market position.
Firm focuses on several segments. Reduces risk of concentrating on just one
Selective Specialization
segment.
Product Specialization Firms market a particular product type to different segments
Market Specialization Firms target a particular segment and satisfy its needs with various offerings
Full Market Coverage Firms target all (most) segments with the products they need
Two interrelated issues when deciding Nature of current strategy, organization resources and capability
which of the five approaches to adopt
The position within the market that the product is to occupy. The perception of the
Product Positioning
brand or organization by the target markets. Walmart vs. Whole foods
• Identifying the organization or brand's possible competitive advantages
Process of Positioning • Deciding on the ones to be emphasized
• Implementing the positioning concept
consumers are confused as to what the organization stands for, maybe due to too
Confused Positioning
many claims made by the company
consumers perceive the organization's products too expensive and fail to recognize
Over-Positioning
the full range of products
firms fail to communicate the message effectively and the brand image is very
Under-positioning
vague to consumers
Repositioning Firms need to reposition as the market environment changes constantly
2/
5
PM
MBA 706 - Exam 3 Questions and answers with
complete solutions verified latest update graded a++
Terms in this set (128)
The process of dividing consumers into groups with similar consumer
Market Segmentation
characteristics and product needs.
Allows managers to break the market into small manageable groups, so that firms
Market Segmentation
can tailor their offerings to satisfy different needs and wants.
Undifferentiated (Mass Marketing), Differentiated (Product-Variety), Concentrated
Three Marketing Strategies
(Target)
Undifferentiated (Mass Marketing) Firms sell a single product (with same marketing approach) to all consumers.
Advantage to Undifferentiated Marketing Economies of scale in production, promotion, and distribution
Disadvantage to Undifferentiated Intense competition and more sophisticated consumers
Marketing
Example of Undifferentiated Marketing Ford's Model T, Black & Decker
Firms provide a wide variety of differentiated offerings to different segments
Differentiated (Product-Variety Marketing)
(sometimes to all consumers).
Advantage of Differentiated Marketing Greater variety to consumers
Disadvantage of Differentiated Marketing Increased Costs
Example of Differentiated Marketing Coca-Cola
Firms identify major market segments, and then target a single segment with a single
Concentrated (Target) Marketing
marketing mix.
Concentrated effort to that specific segment; control cost to appeal only to that
Advantage of Concentrated Marketing
primary target segment.
Disadvantage of Concentrated Marketing Possibility of missed opportunities; vulnerable to competition.
Example of Concentrated Marketing Piano Maker
Multiple Segmentation Firms target different segments with a unique marketing mix for each segment.
1. Survey Stage
Procedures of Segmentation 2. Analysis Stage
3.Profiling Stage
Survey Stage understand consumer motivations, attitudes, and behavior
Analysis Stage identify consumer groups with similar characteristics
Profile each group in terms of their attitudes, behavior, demographics,
Profiling Stage
psychographics and media habits
Factors affecting the feasibility of A marketing segment must be: measurable, accessible, substantial, unique,
segmentation appropriate, and stable
• Geographic and geodemographic
• Demographic
Bases for Segmentation
• Behavioral
• Psychographic
One of the easiest and most commonly used methods. Markets are divided into
Geographic
groups based on region, climate, population density.
1/
5
, 7/4/25, 9:26
PM
Combine geographic and demographic factors. Target consumers in particular areas
Geodemographic
with similar behavior patterns - "Birds of a feather flock together"
Markets are divided using demographic variables such as income, age, gender,
Demographic educational attainment, occupation, religion, race, nationality, family/household
characteristics, etc.
Markets are divided based on behavioral measures such as attitudes, knowledge,
Behavioral
benefits sought, willingness to innovate, loyalty status, usage rates, etc.
Based on the benefits that consumers seek from a product. Ex: Toothpaste
Benefit Segmentation
segmentation based on benefits like teeth whitening, cavity protection, etc.
Markets can be divided on the basis of user status, including non-users, first-
User Status
time users, and regular users.
Markets are divided on the basis of the extent and depth of their loyalty to particular
Loyalty Status/Brand Enthusiasm
brands or stores. Ex: Airline frequent flyer programs.
Markets are divided using psychographic characteristics such as personality,
Psychographic value, lifestyle, etc. Ex: Car manufacturers; Gap (BR, Gap, Old Navy, Athleta, Hill City,
Janie and Jack).
Size and growth potential of each segment, structural attractiveness, organization's
Factors to consider after segmentation
objectives and resources
• Single segment concentration
• Selective specialization
Five patterns of market coverage • Product specialization
• Market specialization
• Full market coverage
Firm focuses on a single segment. Very high-risk strategy, but usually works well for
Single Segment Concentration
small companies. Can develop a strong market position.
Firm focuses on several segments. Reduces risk of concentrating on just one
Selective Specialization
segment.
Product Specialization Firms market a particular product type to different segments
Market Specialization Firms target a particular segment and satisfy its needs with various offerings
Full Market Coverage Firms target all (most) segments with the products they need
Two interrelated issues when deciding Nature of current strategy, organization resources and capability
which of the five approaches to adopt
The position within the market that the product is to occupy. The perception of the
Product Positioning
brand or organization by the target markets. Walmart vs. Whole foods
• Identifying the organization or brand's possible competitive advantages
Process of Positioning • Deciding on the ones to be emphasized
• Implementing the positioning concept
consumers are confused as to what the organization stands for, maybe due to too
Confused Positioning
many claims made by the company
consumers perceive the organization's products too expensive and fail to recognize
Over-Positioning
the full range of products
firms fail to communicate the message effectively and the brand image is very
Under-positioning
vague to consumers
Repositioning Firms need to reposition as the market environment changes constantly
2/
5
