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Unformatted text preview: 151. Refer to Mercedes-Benz. Which positioning base will Daimler be using if the company
emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?
Price and quality
Use or application
Product-user positioning focuses on a personality or type of user.
KEY: CB&E Model Strategy OBJ: 08-9 TOP: AACSB Reflective MSC: BLOOMS Application ESSAY
1. What are the four criteria that are necessary to define a market?
A market has the following characteristics:
composed of people or organizations
the people or organizations have needs and
wants that can be satisfied by particular
the people or organizations have the ability to
purchase the sought products the people or organizations are willing to
exchange resources for desired products
KEY: CB&E Model Customer OBJ: 08-1 TOP: AACSB MSC: BLOOMS Synthesis 2. You are given the following limited information about a market consisting of ten people. Describe
all the possible ways to segment this market.
There are five possible ways to segment this market:
one homogeneous market consisting of ten
people (one segment)
a market consisting of ten individual segments
a market composed of two segments based on
gender (five males and five females)
a market composed of three segments based
on income (four low, two medium, four high)
a market composed of five segments based on
gender and income level (one Male/Low, two
Male/Medium, two Male/High, three
Female/Low, two Female/High)
KEY: CB&E Model Strategy OBJ: 08-1 TOP: AACSB MSC: BLOOMS Synthesis 3. What is a market segment? Define market segmentation and discuss why market segmentation is
important to the well-being of most companies.
A market segment is a subgroup of people or organizations sharing one or more characteristics
that cause them to have relatively similar product needs. All people and all organizations within a
given segment have some similar characteristics and needs.
The process of dividing a market into meaningful segments or groups that are relatively similar
and identifiable is called market segmentation. The purpose of segmentation is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments.
Market segmentation is important to the well-being of most companies because it helps decision
makers more accurately define marketing objectives and allocate resources. As well, it helps
marketers define customer needs and wants more precisely.
KEY: CB&E Model Strategy OBJ: 08-1 | 08-2 TOP: AACSB MSC: BLOOMS Synthesis 4. To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name
and briefly describe each of these four crite...
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This document was uploaded on 09/29/2013.
- Fall '13