Marketing Strategy
These are the four components of the marketing mix.
What are Product, Price, Place, and Promotion?
This is the first step of the consumer decision-making process, when someone's actual state differs from their desired state.
What is need recognition?
Dividing consumers based on age, income, gender, or education uses this type of segmentation.
What is demographic segmentation?
A company uses one broad offering or message for the entire market.
What is undifferentiated targeting?
Inflation and interest rates belong to this macroenvironmental factor.
What is the economic environment?
A company builds customer trust and retention through outstanding service and long-term relationships.
What is customer excellence?
Looking at online reviews before buying a laptop is this type of information search.
What is external search?
Dividing customers based on lifestyle, values, or self-concept uses this type.
What is psychographic segmentation?
Adidas uses separate approaches to serve different sports and customer groups.
What is differentiated targeting?
A company donates money to environmental organizations while leaving its core business model unchanged.
What is corporate social responsibility (CSR)?
A company enters Canada with the same product it already sells in the U.S.
What is market development?
A consumer remembers Nike, Adidas, New Balance, and Hoka, but would only actually consider Nike and Hoka. Nike and Hoka make up this set.
What is the evoked set?
“I buy premium pasta sauce specifically for my weekend dinners.” The occasion of use makes this the best segmentation method.
What is behavioral segmentation?
A luxury watchmaker commits nearly all of its resources to one defined group of wealthy luxury-watch buyers.
What is concentrated targeting?
An automaker shuts down because an outside semiconductor supplier cannot deliver chips. This immediate-environment factor is the most direct cause.
What are corporate partners?
A company launches a new product for a new market it has never served before.
What is diversification?
After buying a $2,000 phone, you discover an almost identical $900 phone and begin questioning whether you made the right decision.
What is cognitive dissonance?
A company knows exactly who belongs to a segment but has no practical way to communicate with or distribute to them. The segment fails this attractiveness test.
What is reachable?
This is the proof that makes a brand's promised benefits credible, such as technology, expertise, quality, or performance evidence.
What is a reason to believe?
A government tariff raises a company's sourcing costs. If the question asks what caused the change, this is the best macroenvironmental factor.
What is political/legal?
A business has high relative market share in a slow-growing market. In the BCG matrix, it belongs here.
What is a cash cow?
Two cars both have excellent safety ratings. Safety matters greatly to the consumer, but doesn't help distinguish between the cars. Safety is this, but NOT a determinant attribute.
What is an evaluative criterion?
A segment is huge and generates substantial revenue, but acquiring and serving it costs more than the economic value it generates. It fails this test.
What is profitable?
A company has a capability its competitors cannot match—but customers don't actually want the benefit that capability provides. Explain why this does NOT create an ideal value proposition.
What is: uniqueness alone doesn't create customer value; customers must want the benefit?
A company has identified an ethical problem and gathered the facts. Managers are now comparing a recall, additional testing, and warning customers. They are in this step of the ethics framework.
What is Step 3: develop and evaluate alternatives?