Marketing Strategy Flashcards

A company uses demographic, psychographic, and behavioral data to divide its market into distinct groups. This process is called:

Answer: Market segmentation

Market segmentation is the process of dividing a market into distinct subsets of consumers with common needs or behaviors.

Which of the following BEST describes a 'value proposition'?

Answer: The unique bundle of benefits that differentiates a brand from competitors

A value proposition communicates the distinctive benefits a brand delivers that competitors do not.

In a push marketing strategy, the primary communication target is:

Answer: Channel intermediaries such as wholesalers and retailers

Push strategies direct promotional efforts toward channel members to get them to stock and sell the product.

A company that sells insurance services recognizes that its 'product' cannot be stored or inventoried. Which service characteristic does this reflect?

Answer: Perishability

Perishability means services cannot be stored, saved, returned, or resold after the moment of production.

Which environmental scanning framework analyzes Political, Economic, Social, Technological, Environmental, and Legal forces?

Answer: PESTEL

PESTEL is a macro-environment framework examining six categories of external forces affecting a business.

A marketer creates personas like 'Budget-Conscious Brian' to better understand target customers. These personas are based on:

Answer: Aggregated customer research data representing key audience segments

Buyer personas are semi-fictional representations of ideal customers built from market research and real customer data.

The concept of the 'long tail' in marketing strategy refers to:

Answer: Profitability from selling large volumes of niche items rather than only hit products

The long tail concept argues that aggregated sales of many niche products can rival or exceed blockbuster sales.