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MGT 103 Chapter 9 (STP) Exam Questions and Answers
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MGT 103 Chapter 9 (STP) Exam Questions and Answers
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MGT 103: Chapter 9 (STP) ExamQuestions and Answers
Why iisegment iimarkets? ii- iiAnswers ii-A iibusiness iifirm iisegments iiits iimarkets iiso iiit
iican iirespond iimore iieffectively iito iithe iiwants iiof iigroups iiof iipotential iibuyers iiand iithus
iiincrease iiits iisales iiand iiprofits.
Market iiSegmentation ii- iiAnswers ii-aggregating iiprospective iibuyers iiinto iigroups iithat
ii(1) iihave iicommon iineeds iiand ii(2) iiwill iirespond iisimilarly iito iia iimarketing iiaction
Market iiSegments ii- iiAnswers ii-- iithe iirelatively iihomogeneous iigroups iiof iiprospective
iibuyers iithat iiresult iifrom iithe iimarket iisegmentation iiprocess
- iieach iisegment iiconsists iiof iipeople iiwho iiare iirelatively iisimilar iito iieach iiother iiin
iiterms iiof iiconsumption iibehavior
product iidifferentiation ii- iiAnswers ii-- iithe iicreation iiof iireal iior iiperceived iiproduct
iidifferences
- iia iipositioning iistrategy iithat iisome iifirms iiuse iito iidistinguish iitheir iiproducts iifrom
iithose iiof iicompetitors ii(have iiconsumers iiperceive iithe iiproduct iias iibeing iidifferent iiand
iibetter iithan iicompeting iiproducts)
- iiinvolves iia iifirm iiusing iidifferent iimarketing iimix iiactions, iilike iiproduct iifeatures iiand
iiadvertising
- iifirms iiuse iithis iistrategy iias iia iiresult iiof iidifferent iimarket iisegments
Segmentation: iiLinking iiNeeds iito iiActions ii- iiAnswers ii-The iiprocess iiof iisegmenting iia
iimarket iiand iiselecting iispecific iisegments iias iitargets iiis iithe iilink iibetween iithe iivarious
iibuyers' iineeds iiand iithe iiorganization's iimarketing iiprogram
- iileads iito iitangible iimarketing iiactions iithat iican iiincrease iisales iiand iiprofitability
market-product iigrid ii- iiAnswers ii-a iiframework iito iirelate iithe iimarket iisegments iiof
iipotential iibuyers iito iiproducts iioffered iior iipotential iimarketing iiactions
When iiand iiHow iito iiSegment iiMarkets ii- iiAnswers ii-- iia iibusiness iisegments iiits
iimarkets ii*when* iiit iiexpects iithat iithis iiextra iieffort iiwill iiincrease iiits iisales, iiprofit, iiand
iireturn iion iiinvestment
- iiwhen iiexpenses ii> iipotentially iiincreased iisales iifrom iisegmentation, iia iifirm iishould
ii*not* iiattempt iito iisegment iiits iimarket
1. iiOne iiProduct iiand iiMultiple iiMarket iiSegments
2. iiMultiple iiProducts iiand iiMultiple iiMarket iiSegments ii(Ford iihaving iimultiple iimodels)
, 3. iiSegments iiof iiOne ii(Mass iiCustomization)
One iiProduct iiand iiMultiple iiMarket iiSegments ii- iiAnswers ii-Pros: iiAvoids iithe iiextra
iicosts iiof iideveloping iiand iiproducing iiadditional iiversions iiof iithe iiproduct. ii
Example: iiMagazines/Books
- iiAlthough iiseparate iicovers iifor iimagazines iior iiseparate iiadvertisements iifor iibooks ii(to
iiattract iithe iidifferent iimarket iisegments) iiare iiexpensive, iithese iiexpenses iiare iiminor
iicompared iiwith iithe iicosts iiof iiproducing iimultiple iiversions iiof iimagazines iior iibooks iifor
iiseveral iidifferent iimarket iisegments
Multiple iiProducts iiand iiMultiple iiMarket iiSegments ii- iiAnswers ii-Example: iiFord's
iidifferent iilines iiof iicars, iiSUVs, iiand iipickup iitrucks iiare iieach iitargeted iiat iia iidifferent
iitype iiof iicustomer
Pros: iivery iieffective iiif iiit iimeets iicustomers' iineeds iibetter, iidoesn't iireduce
iiquality/increase iiprice, iiand iiadds iito iisales iirevenues iiand iiprofits
Cons: iiThe iiproliferation iiof iidifferent iimodels iiand iioptions iican iireduce iiquality iiand
iiraise iiprices—especially iiin iirelation iito iiforeign iiimports ii(this iiis iiwhy iiFord iireduce iithe
iinumber iiof iimodels/options iithey iihave)
mass iicustomization ii- iiAnswers ii-tailoring iiproducts iito iimeet iithe iineeds iiof iiindividual
iicustomers ii(the iinext iistep iibeyond iiBTO)
build-to-order ii(BTO) ii- iiAnswers ii-manufacturing iia iiproduct iionly iiwhen iithere iiis iian
iiorder iifrom iia iicustomer
What iiis iithe iikey iito iisuccessful iiproduct iidifferentiation iiand iimarket iisegmentation
iistrategies? ii- iiAnswers ii-Finding iithe iiideal iibalance iibetween iisatisfying iia iicustomer's
iiindividual iiwants iiand iiachieving iiorganizational iisynergy.
organizational iisynergy ii- iiAnswers ii-the iiincreased iicustomer iivalue iiachieved iithrough
iiperforming iiorganizational iifunctions iisuch iias iimarketing iior iimanufacturing iimore
iiefficiently
cannibalization ii- iiAnswers ii-a iisituation iithat iioccurs iiwhen iisales iiof iia iinew iiproduct iicut
iiinto/steal iisales iiof iia iifirm's iiexisting iiproducts
5 iikey iisteps iiin iisegmenting iiand iitargeting iimarkets ii- iiAnswers ii-1. iiGroup iipotential
iibuyers iiinto iisegments
2. iiGroup iiproducts iito iibe iisold iiinto iicategories
3. iiDevelop iia iimarket-product iigrid iiand iiestimate iisize iiof iimarkets
4. iiSelect iitarget iimarkets
5. iiTake iimarketing iiactions iito iireach iitarget iimarkets
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