Answer from the pre-class reading only.Negative marks will be applicable for wrong answers.

Answer in one or two sentences.

Presidency Business School, QUIZ no. 4

Name : Date:

Sem: 1(MKU) Marketing Management

Two marks each

1.Which are the two factors the firm must look into while evaluating different market segments ?

2.What is the use of concentrating on a single segment ?

3. Which pattern of target market selection has the advantage of diversifying firm’s risk ?

4.When is the product specialisation come under risk?

5. In which type of marketing the firm focuses on a basic buyer need rather than on differences among buyers ?

Product Differentiation Companies constantly need to think up

new value-adding features and benefits to win the attention and interest of choice-rich, price prone consumers.

Most competitive advantages last only a short time as they get copied as soon as possible.

Company must differentiate its offering.

Differentiatiation is the act of designing a set of meaningfuldidfferences to distinguish the company’s offering from competitors’ offerings

Product Differentiation Services Differentiation

Product Differentiation: Physical products vary in their potential for differentiation.

Form Features Performance Quality Conformance Quality Durability Reliability Repairability Style Design: Integrating Force

Services Differentiation: When product cannot be differentiated easily adding value services and improving quality becomes the key to differentiation

Ordering Ease Delivery Installation Customer training Maintenance & Repair Miscellaneous Services

Personnel Differentiation:

In an age when competitors can knock off productsa or services in an instant, sosme savy companies are marketing their employees’ unique know how.

Competence Courtesy Credibility Reliability Responsiveness Communication

Channel Differentiation: Companies can achieve

competitive advantage thro’ the way they design their distribution channels’ coverage, expertise and performance.

Image Differentiation Buyers respond differently to

company and brand images. Products’ character and value

proposition Convey's this character in a distinct

way sop as not to confuse with competitors

It delivers emotional power beyond a mental image.

Symbols: strong signals Media:must be worked out into ads

and media Atmosphere:physical space

occupied. Events: events it sponsors

Target marketing Identify and profile distinct groups of

buyers who might require separate products or product mixes (market segmentation)

Select one or more market segments to enter (market targeting)

Establish and communicate the products’ key distinctive benefits in the market (market positioning)

Positioning Positioning is the act of designing the

company’s offering and image to occupy a distinctive place in the target market’s mind.

It is not what you do to the product, but what you do to the mind of the prospect.

Positioning requires that every tangible aspect of product, price, place and promotion must support the chosen positioning strategy.

How many differences to promote? Each company must decide how many

differences to promote to its target customers.

Many marketers advocate promoting only one central benefit (Unique selling proposition)

Double benefit positioning may be necessary if two or more firms claim to be the best on the attribute.

The companies must avoid four major positioning errors

1. Underpositioning2. Overpositioning3. Confused positioning4. Doubtful positioning

Market targeting Once the firm has identified the

market-segment opportunities, it has to decide how many and which ones to target

Evaluating the market segments the firm must look into two factors:

The segment’s overall attractiveness and the company’s objectives and resources.

Selecting the market segments Single segment concentrationThe company may select single segment

and if it captures segment leadership, the market can earn a high return on its investment.

Selective specialisationHere the firm selects a no. of segments,

each objectively attractive and approporiate

Single segment concentration

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Selective specialisation

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Product specializationThe firm specialises in making a

certain product that it sells to several segments

Market specialisationHere the firm concentrates on

serving many needs of a particular customer group.

Product specialisation

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Market specialisation

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Full market coverageHere a firm attempts to serve all

customer groups with all the products they might need

Full market coverage

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Full market coverage

Undifferentiated marketing: ignore maket-segment differences and goes after the whole market with one market offer.

Differentiated marketing: The firm operates in several market segments and designs different programs for each segment.

Differentiated marketing1. Product modification costs2. Manufactiring costs3. Administrative costs4. Inventory costsAs Differentiated marketing leads to both

higher sales and higher costs, nothing general can be said regarding this strategy’s profitability.

Additional considerations Marketers must choose target

markets in a socially responsible manner.

1. Ethical choice of market targets2. Segment interrelationships and

supersegments3. Segment by segment invasion plans4. megamarketing5. Intersegment cooperation