Week 4 Homework - HW:pp.179181,Questions1,2,6and10andCase72...

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HW: pp. 179-181, Questions 1, 2, 6 and 10 and Case 7-2. 1. What is market segmentation, and how does it differ from product differentiation? Market segmentation divides a market into subsets of prospective customers who behave in the same way, have similar  wants, or have similar characteristics that relate to purchase behavior.  Market segmentation attempts to explain  differences among groups of consumers who share similar characteristics and turn these differences into an advantage.  Marketing effectiveness is then enhanced by an understanding of who the firm’s best customers are, what’s on their  minds, where and how they can be reached, and what they are buying.  Product differentiation differs from market  segmentation in that product differentiation exists when a firm’s offerings differ or are perceived to differ from those of  competing firms on any attribute, including price. A product differentiation strategy positions a product within the market.  Marketers attempt to position a product or service in customers’ minds, to convince customers the product has unique  and desirable characteristics, and by developing these perceptions, marketers seek to establish a competitive advantage  relative to competing firms that offer similar products or brands.  2. How might a marketer attempt to differentiate a product from competing products?  A marketer might attempt to differentiate a product from competing products after product differentiation is  introduced in the market, and by then Positioning a product within the market, which is the process of exercising  a differentiation strategy to convince consumers that the product has unique desirable  characteristics.  Positioning refers to consumers’ perceptions of the particular product or brand in relation to its competitors.  Positioning a product or service involves designing a marketing program, including the product mix, that is 
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This note was uploaded on 09/06/2011 for the course ECON 2312 taught by Professor Dan during the Spring '11 term at The University of Texas at San Antonio- San Antonio.

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Week 4 Homework - HW:pp.179181,Questions1,2,6and10andCase72...

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