MKT1040- Revision week 5

Which is the best description of product differentiation?

• It is used by organizations to identify differences between brands.

• Marketers engage this concept to position products differently from competitive offers so consumers will perceive products as unique.

• It is the process used to ensure products are effectively positioned on retail store shelves.

• It is a process companies use to identify the best potential audiences for its different products.

Market segmentation:

• refers to the positioning of a product apart from the competition in the eyes of the consumers.

• refers to aggregating buyers who respond differently to a marketing program.

• creates two markets—the market for elastic goods and that for inelastic goods.

• involves groups that are relatively homogeneous in terms of consumption, attitudes, and buying behaviour.

Bubbles Bubble Gum uses brightly-coloured and scented packaging to match the gum flavour that is inside. These elements are part of the company's ________ strategy to position its gum products apart from competitive products.

• niche marketing

• product differentiation

• segment marketing

• repositioning

Mass marketing:

• involves focusing efforts on a limited segment in the market.

• refers to designing specific products and services to meet the needs of different target groups.

• involves marketing a product to the entire market with no differentiation at all.

• is the most common form of segmentation followed by large companies.

Answer explanation

A mass marketing strategy is when a product with broad appeal is widely marketed to the entire market with no product or marketing differentiation at all.

_____ marketing involves designing specific products and services to meet the needs of different target groups.

• Segment

• Niche

• Mass

• Micro

Answer explanation

Segment marketing involves designing specific products and services to meet the needs of different target groups.

Look, a cosmetic company, purchases Nature, a small cosmetic franchise. Nature manufactures and sells cosmetics that are made of 90 percent natural ingredients and are not animal-tested. It has always targeted a special audience and has focused its efforts on this limited segment in the market. Look decides to promote products by Nature as a separate brand, understanding that the products interest and attract a special segment of the market. This is an example of:

• niche marketing.

• individualized marketing.

• segment marketing.

• family branding.

Answer explanation

The market segmentation strategy when a company restricts its efforts to market a limited product line to a narrow but profitable single segment of the market that is of marginal interest to major competitors is called niche marketing.

YourIdea.com is an online shopping portal that allows its customers to personalize mugs, pens, and photo frames. Which of the following approaches is the company following?

• Mass marketing

• Niche marketing

• Segment marketing

• Individualized marketing

Answer explanation

New technology has boosted individualized marketing as a segmentation option for marketers. The Internet allows marketers to use database technology to track consumer purchases and predict interests and future purchases. This enables a marketer to customize offers and, in some cases, products to fit individual needs.

______ are character descriptions of a brand's typical consumers.

• Psychographics

• Segments

• Personas

• Niches

Answer explanation

Personas are character descriptions of a brand's typical customers.

Research determines that the buyers of an organic dish soap, Envirosafe, have a higher average level of educational accreditation versus those purchasing other brands. This buyer characteristic is a _______ variable.

• behaviouristics

• geographic

• psychographics

• demographics

Answer explanation

Education is a demographic variable, similar to age, gender, family composition, income, and occupation.

Which of the following is a demographic variable?

• City size

• Income

• Usage

• Attitude

Answer explanation

Demographics includes identifying ranges for age, gender, family life cycle, income, occupation, education, ethnic background, and home ownership for the main target market.