INTRODUCTİON TO BUSİNESS - Deneme Sınavı - 12

Psychographics enable marketers to closely “know” consumers and understand their psychological and social predispositions.The most useful approach in segmenting consumers is on the basis of psychographic information. With psychographics, marketers become able to closely “know” consumers and understand their psychological and social predispositions. The correct answer is C.

Marketing mix can be considered as the tactical-level marketing facilities, which are directed towards a certain target group, identified in the phase of strategic decisions. Four Ps are identified to be the initial letters of the most fundamental marketing actions, namely, product, price, promotion and place. The correct answer is A.

Product (good or service) is the offering in the market, created and sold in order to solve a problem or satisfy a need or want. A commodity can be a product, such as salt or bread, can be successfully branded by a company. In business terms, a product can be tangible (like soap) or intangible (like education). The correct answer is B.

Advertising is the most expensive but the most effective (in terms of the number of people reached with one message) contact method. It is the most well-known mass method of conveying a message. The most important advantage lies in the fact that marketers are able to dramatize the brand meaning, such as by having actual people play a role, having animated images, and all sorts of videos and visual effects. One disadvantage is that there is no control over who is watching the advertisement and the single reaction on each view by each viewer.The correct answer is D.

Branding involves a set of marketing and promotion activities that promote the brand, aiming to have a persistent image in consumers’ minds. Branding is the most strategic investment of the company. Brand equity is a term reflecting the brand’s worth in the eyes of consumers, usually reflected in the price. Brand identity is the set of all individual components of a brand, specifically including the imagery, slogans, colors, and all other types of imagery. The correct answer is D.

Experiential positioning: The brand tries to provide stimulation throughout the purchasing and consumption process. For instance, a toy store may invite children to play with toys to understand what they like and do not like (sensory experience); a smart phone brand may provide in-store experience booths where consumers can explore their needs and wants (cognitive experience), and a theme park may attempt to make consumers have different experiences stimulating a variety of different emotions including joy, happiness, excitement, and thrill (emotional experience). A lot of brands have experiential elements included in their brand positioning such as Starbucks (baristas taking names and chatting with customers), Doc McStuffin (Disney TV channel having children around a big toy bear inspecting it like a doctor), and Game of Thrones (different games, films, parks, and events).Functional positioning: The brand promises to solve a problem and provide a functional benefit to customers. For instance, Oral-B electric toothbrush claims to reach each and every spot over one’s teeth, and promises a clean, hygienic, and healthy mouth. The correct answer is A.

Marketing is typically defined as the creation, promotion, and delivery of goods and services directed towards consumers and businesses.

Marketing strategy, from this perspective, is the way of doing marketing towards
a certain positioning.

In order to talk about a useful segmentation, the following conditions must be met:

People in the same group should be homogenous, i.e. similar to each other in one way of another. This is in fact the basis of effective segmentation: each segment must be similar in terms of needs or chosen characteristics.

People in different groups should be heterogeneous. Together with the first point, this would demonstrate that consumers are effectively divided into sets of different needs.

Some data should be available for each segment so that measurements can be made as regards to the size of the market, the general characteristics of consumers constituting that market, details of their buying behavior, and thus, the overall attractiveness of the segment.

The segments should be substantial either in terms of number (sales potential) or in terms profit per unit sold (profit potential). Each company is likely to have a “minimum” requirement to be profitable.

The segments should also be accessible so that an effective distribution and communication strategy can be established.

Psychographics enable marketers to closely “know” consumers and understand their psychological and social predispositions.

The targeted segment should be measurable, substantial, accessible, differentiable, actionable.

Four Ps are identified to be the initial letters of the most fundamental marketing actions, namely, product, price, place (distribution), and promotion.

Detergent is a perishable product.

A pricing strategy is competition-based pricing, where marketers try to understand the market conditions, a reference price by which consumers can compare other prices, and the ongoing price of different types of offerings in the same market.

The tools of communication available for marketers are: (1) advertising, (2) sales promotions, (3) public relations and publicity, and (4) personal sales.

Marketing is typically defined as the creation, promotion, and delivery of goods and services directed towards consumers and businesses.

Firms needs to choose a specific strategy, a way of doing business so that they can concentrate their efforts and resources on certain areas.3 In his argument, firms failing to do this would “stuck in the middle,” vaguely perceived by consumers as a strong brand (Figure 5.1). Firms which stuck in the middle fail to develop their strategy in at least one of three dimensions: (1) cost leadership, (2) differentiation, and (3) focus. Companies should build competitive advantage in order to remain distinctive in the market and hold the advantage for a long period of time.

Focus strategy attempts to capture a smaller segment in the market.

In order to talk about a useful segmentation, the following conditions must be met: 1. People in the same group should be homogenous, i.e. similar to each other in one way of another. This is in fact the basis of effective segmentation: each segment must be similar in terms of needs or chosen characteristics. 2. People in different groups should be heterogeneous. Together with the first point, this would demonstrate that consumers are effectively divided into sets of different needs. 3. Some data should be available for each segment so that measurements can be made as regards to the size of the market, the general characteristics of consumers constituting that market, details of their buying behavior, and thus, the overall attractiveness of the segment. 4. The segments should be substantial either in terms of number (sales potential) or in terms profit per unit sold (profit potential). Each company islikely to have a “minimum” requirement to be profitable. 5. The segments should also be accessible so that an effective distribution and communication strategy can be established.

The criteria for segmentation may differ from one company to another. One of the most convenient methods is geographic segmentation.

A more sophisticated yet still simple criterion for segmentation is demographic (and in the case of B2B markets, firmographics).

A more useful approach is categorizing consumers on the basis of how they purchase and use a particular product or brand.

The most useful approach in segmenting consumers is on the basis of psychographic information.

An ideal segmentation approach combines different strategies (including demographics and psychographics) to arrive at groups with the highest level of differentiation.