Segmentation, targeting, positioning

A key requirement for successful product differentiation is that:

• The points of differentiation are easily copied by competitors

• The product delivers things that are important to customers

• Target customers cannot afford the product

• The product does not have a USP

The following are all potential benefits of effective product differentiation – except which one?

• Source of competitive advantage

• Lowers the selling price

• Protects and builds a brand

• Adds more value

A potential drawback of deciding to target a niche market is that:

• The gross profit margin on each sale is likely to be much lower

• Economies of scale are less likely to be achieved

• Customers are more likely to demand an undifferentiated product

• Customers loyalty will fall

Which of the following businesses has a market positioning strategy of offering "more for less "?

• Mercedes-Benz

• Aldi

• Waitrose

• Next

Positioning map should be used with some caution because:

• Competitors will also be using them

• Customers are not influenced by market positioning

• They cannot be supported by market research

• The existence of a gap in the market does not guarantee demand

Market positioning should always be considered from the perspective of:

• Analysts

• Competitors

• Suppliers

• Customers

Which of these is an example of behavioural segmentation

• A tour operator launches a new brochure targeting retired couples

• And retail introduces a generous loyalty scheme for frequent customers

• A fast-food chain expands by opening new outlets in three nearby towns

• I luxury brand introduces it's most expensive product to date

Are useful framework for determining an appropriate position in a target market is a:

• Positioning map

• Segment report

• Market research matrix

• Swot analysis

A common feature of mass market is that:

• Customers have very specific needs and wants

• There are many similar products offered by customers

• Mass-market advertising is not effective

• Brands find it difficult to survive

In the STP model the targeting stage involves:

• Deciding which segments to enter

• Analysing the strength of potential competition

• Calculating the size of each segment

• Launch a new product into the segment