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Exam 6: Market Segmentation Positioning and the Value Proposition

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Question 1

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What is a value proposition? Explain why it is useful-even critical-to an organization, to its brand, to its team, and to its target audience.

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A value proposition is a statement of the functional, emotional, and self-expressive benefits offered by the brand.It acts as the basis for brand choice and customer loyalty, which is critical to the ongoing success of a firm. The value proposition offers a way to capture the full record of a brand and all of its characteristics and benefits.It also provides a foundation and structure that will maintain this information as new members join the team and work on new promotional efforts for the brand.It is basically a way to capture the brand strategy on paper.It makes things crystal clear about what is believed and known about the brand.That way, everyone on the team can share this clear set of values, benefits, and other pieces of information related to the brand. But more important, the value proposition is what keeps the brand consistent in the eyes of the target market.It consolidates all the customer benefits offered by a product, and reminds consumers of these benefits. Over time, different aspects can be built into the value proposition.Well-established benefits reinforce one another, and new benefits are added to current ones.Some brands -- national brands, and especially global brands -- are very involved and complex, with long histories and decades of marketing efforts.They may now involve branded entertainment, product placement, mobile marketing, online advertising, or other relatively new promotional formats.The value proposition for these products is even more important in order to keep all brand information clear and consistent throughout all promotional efforts.

Question 2

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Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation?

A) Thorson and Moore's model
B) PRIZM
C) SIC Codes
D) VALS

E) None of the above
F) A) and C)

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Question 3

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A firm hires an agency to persuade hairdressers, spas, and hair salons to purchase its line of hair care products, grooming equipment, and professional tools.In this case, the agency is specifically involved in:

What does the acronym STP mean?

What is a downside to adopting a heavy-user-focused segmentation plan?

Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables.

Ultima Inc., a manufacturer of high-end cell phones and laptops, has designed a campaign that specifically targets a group of emergent consumers and aims to persuade them to try its products.This campaign is an example of:

What does T stand for in the term STP marketing?

Why are systems such as PRIZM used widely by advertisers for segmentation?

One big plus from a product position that stays consistent over time, like State Farm's "Good Neighbor" campaign, is that it

LivTo Inc.is a company that manufactures cosmetic products for women.It claims to have the best customer care services and is prompt to address the grievances of its customers.To be internally consistent, the company should invest in a better Research and Development department and also create a new image for its products.

Which firm did the text highlight as one with a long­term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy?

If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments.

In Mobil's positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did.But one issue that was NOT a factor was that the segment

A major criterion to consider during segment selection is the segment's business.

Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus:

The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's segments, its value proposition, and its persuasion tools.

Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense.

The model shows that a brand's best opportunity for success involves the overlapping of four important Factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition Of uniqueness, and "stretch" or the potential for consumer relevance over time.

The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed