Marketing and Herb - Essay Example

The third step Is market positioning: setting he competitive positioning for the product and creating a detailed marketing mix. (p. 165; Moderate) Explain the four major segmenting variables for consumer markets. Geographic segmentation delves the market Into different geographic units, such as nations, regions, states, countries, cities, or neighborhoods. Many companies are localizing their products, advertising, promotion, and sales efforts or are seeking to cultivate as-yet untapped geographic territory.

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Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life yes, income, occupation, education, religion, race, generation, and nationality. They are the most popular factors because they are easy to measure, and consumer needs, wants, and usage rates often vary closely with demographic variables. Cryptographic segmentation, on the other hand, delves buyers Into different groups based on social class, lifestyle, or personality characteristics.

People in the same demographic group can have very different cryptographic makeup. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments. (up. 166-172; Challenging) Describe how marketers use multiple-segmenting bases to their advantage. Marketers rarely limit their segmenting analysis to only one or a few variables. They use multiple segmentation bases in an effort to identify smaller, better-defined target groups.

Companies often begin by segmenting their markets using a single base, then expand using other bases. (up. 173-1744; Easy) Why do businesses segment their markets? By going after segments instead of the whole market, companies have a much better hence to deliver value to customers and to receive maximum rewards for close attention to customer needs. Businesses segment using variables of operating characteristics. (p. 175; Easy) Why do international markets need to be segmented? Few companies have either the resources or the will to operate in all, or even most, of the countries that dot the globe.

Different countries, even those that are close together, can vary greatly in their economic, cultural, technological, and political makeup. International firms need to group their world markets into segments with distinctive buying needs and behaviors. P. 176; Easy) You are presenting a workshop on the Requirements for Effective Segmentation. Briefly describe the five items that will help your audience understand your topic. The size, purchasing power, and profiles of the segments must be measurable. The major problem may be that the segment will be hard to identify and measure.

The market segments must be accessible, that is they can be effectively reached and served. The segments must be substantial or large/profitable enough to serve. It should be the largest possible homogeneous group worth pursuing with a tailored marketing program. By being differentiable the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Effective programs can be designed for attracting and serving the segments by being actionable. (p. 177; Challenging) Compare and contrast the five major segmenting strategies.

An undifferentiated marketing strategy ignores market segment differences and targets the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different. In contrast, a differentiated strategy targets several market segments and designs operate offers for each. Companies hope for higher sales and a stronger position within each market segment. Concentrated or niche marketing goes after a large share of one or a few segments or niches instead of going after a share of a large market.

These niches may be overlooked, unimportant, or under worked. Inching offers smaller companies an opportunity to compete by focusing their limited resources more effectively. Using micromanaging, a company can tailor products and marketing programs to suit the tastes of specific individuals and locations. It includes local and individual marketing. (p. 78; Moderate) Explain the concept of positioning for competitive advantage. A product’s position is the way the product is defined by consumers on important attributes-?the place the product occupies in consumers’ minds relative to competing products.

Positioning involves implanting the brand’s unique benefits and must identify a set of possible competitive advantages upon which to build a problem, choose the right competitive advantages, and select an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market. (p. 185; Challenging) 14. Explain how companies identify attractive market segments and choose a target marketing strategy. To target the best market segments, the company first evaluates each segment’s size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources.

It then chooses one of four marketing strategies-?ranging from very broad to very narrow targeting. The seller can ignore segment differences and target broadly using undifferentiated marketing. This involves mass-producing, mass-distributing, and mass-promoting about the same product in about the same ay to all consumers. Or the seller can adopt differentiated marketing-?developing different market offers for several segments. Concentrated marketing involves focusing on only one or a few market segments.

Finally, micromanaging is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micromanaging includes local marketing and individual marketing. Which targeting strategy is best depends on company resources, product variability, product life cycle stage, market variability, and competitive marketing strategies. (up. 78-180; Challenging) 115. In what ways might a marketer engage in socially responsible target marketing? Socially responsible marketers work to avoid purposefully targeting vulnerable or disadvantaged consumers with controversial or potentially harmful products.

In addition, marketers may reconsider the marketing of adult products that may spill over into the child segment-?either intentionally or unintentionally; primary examples include beer, cigarettes, and fast food. The growth of the Internet has also presented potential problems-?namely that makers of questionable products or exceptive advertisers may more readily victimize the most vulnerable audiences; marketers can avoid becoming involved in these harmful situations as they attempt to reach vast numbers of consumers with such precise, refined targeting strategies. P. 183; Easy) Short Answer Marketers divide heterogeneous markets into smaller niches that can be reached more efficiently with products and services that match their unique tastes. (p. 165; Easy) In which step of target marketing is the marketing mix created in detail? This is implemented in the marketing positioning step. (P. 165; Easy) Why might demographic segmentation be the most common type of segmentation? Demographic segmentation is often based on observable features, making demographic segmentation easier than other types. (p. 67; Moderate) Why must marketers guard against stereotypes when using age and life cycle segmentation? Not all consumers in the same age and life cycle categories share the same abilities and interests; some 40 year olds may have more in common with typical 20 year olds, for example, than with other 40 year olds. (p. 167; Challenging) On what characteristics might a marketer focus with cryptographic segmentation? Such characteristics include social class, lifestyle, and personality. (p. 169; Moderate) If Cool-Aid promotes a year-round campaign that “Cool-Aid isn’t Just a summertime drink,” what type of segmentation is being used?

Occasion segmentation is being used in this scenario. (p. 170; Challenging) Half of a marketer’s consumers buy a product because it is “in style”; the other half buy the product because of its superior functionality. What is this type of segmentation called? Benefit segmentation. (p. 172; Challenging) Analogy consumers can be attracted by putting the brand on sale or by altering price. (p. 73; Moderate) How might a marketer benefit most from PRIZE? People and locations can be segmented into marketable groups of like-minded consumers. P. 174; Challenging) List three variables that may be used to segment both consumer and business markets. Variables that apply to both consumer and business markets include geographies, demographics, benefits sought, user status, usage rate, and loyalty status. (p. 175; Challenging) List three variables not applicable to the consumer market that may be used to segment business markets only. Operating characteristics, purchasing approaches, situational factors, and personal heartsickness can all be used to segment business markets. (p. 75; Challenging) What assumption about consumers might a marketer be able to make when using intermarried segmentation? Such marketers can assume that segments of consumers have similar needs and buying behavior even though they are located in different countries. (p. 176; What factors may impact segment attractiveness? The number of competitors, substitute products, power of buyers, and powerful suppliers may impact segment attractiveness. (p. 178; Moderate) What is one major assumption made by marketers who choose to use an undifferentiated marketing strategy?

Such marketers assume that all consumers share something in common, regardless of how different the consumers may be. (p. 179; Easy) EX. Computers, Inc. , is a market niches. How might EX. benefit from this? Resources on serving niches that may be unimportant to or overlooked by larger competitors. (p. 180; Challenging) BMW allows customers to design their own vehicle from a set of options at BMW Web site. What is this called? Mass customization. (p. 181; Moderate) Explain how market variability impacts the choice of a target-marketing strategy.

If most buyers have the same tastes, buy the same amounts, and react the same way o marketing efforts, undifferentiated marketing may be appropriate, for example. (p. 183; Challenging) When might be the best time for a marketer to use geographic segmentation? Geographic segmentation may be especially profitable when consumers in different regions, states, counties, and so forth share different buying behaviors and product or service preferences. (p. 165; Easy) Why might a marketer of laundry detergent be interested in viewing a perceptual positioning map?

Perceptual positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions. Laundry detergent, for example, may be placed on a perceptual map based on price and cleaning power; this allows a marketer to view how consumers perceive their product with respect to others’ products along those dimensions. (p. 185; Moderate) In what ways might a marketer be able to gain competitive advantage through channel differentiation? Firms that practice channel differentiation gain competitive advantage through the way they design their channel’s coverage, expertise, and performance.

Such factors as the level of customer service, speed of delivery, packaging, transportation type, ND so on may play a role in channel differentiation. (p. 187; Challenging) Scenario Herb Marks began making wooden writing utensils as a hobby until Mel Yoder styles to be displayed in his shop’s showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent but Meld’s enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles.

He explained his manufacturing processes and engraving options to each. All three shops’ owners placed a trial order. Within two months, Just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! “l figured business would slow down after that,” Herb stated, “but in February I was contacted by Elmer Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business. ” Elmer Distributors provided products for school fundraisers in a seven-state area.