1. Answer from the pre-class reading only.
Negative marks will be applicable for wrong answers.
Answer in one or two sentences.
 Presidency Business School,
QUIZ no. 4
 Name : Date:
 Sem: 1(MKU) Marketing Management

2. Two marks each
 1.Which are the two factors the firm must look into
while evaluating different market segments ?
 2.What is the use of concentrating on a single
segment ?
 3. Which pattern of target market selection has the
advantage of diversifying firm’s risk ?
 4.When is the product specialisation come under
risk?
 5. In which type of marketing the firm focuses on a
basic buyer need rather than on differences among
buyers ?

3. Product Differentiation
 Companies constantly need to think up
new value-adding features and benefits
to win the attention and interest of
choice-rich, price prone consumers.
 Most competitive advantages last only a
short time as they get copied as soon
as possible.
 Company must differentiate its offering.

4.  Differentiatiation is the act of
designing a set of
meaningfuldidfferences to distinguish
the company’s offering from
competitors’ offerings
 Product Differentiation
 Services Differentiation

5.  Product Differentiation: Physical products vary in their potential
for differentiation.
 Form
 Features
 Performance Quality
 Conformance Quality
 Durability
 Reliability
 Repairability
 Style
 Design: Integrating Force

6.  Services Differentiation: When product cannot be
differentiated easily adding value services and
improving quality becomes the key to differentiation
 Ordering Ease
 Delivery
 Installation
 Customer training
 Maintenance & Repair
 Miscellaneous Services

7.  Personnel Differentiation:
In an age when competitors can knock off productsa or
services in an instant, sosme savy companies are
marketing their employees’ unique know how.
 Competence
 Courtesy
 Credibility
 Reliability
 Responsiveness
 Communication

8.  Channel Differentiation:
 Companies can achieve
competitive advantage thro’
the way they design their
distribution channels’
coverage, expertise and
performance.

9.  Image Differentiation
 Buyers respond differently to company
and brand images.
 Products’ character and value
proposition
 Convey's this character in a distinct
way sop as not to confuse with
competitors
 It delivers emotional power beyond a
mental image.

10.  Symbols: strong signals
 Media:must be worked out into ads and
media
 Atmosphere:physical space occupied.
 Events: events it sponsors

11. Target marketing
 Identify and profile distinct groups of buyers
who might require separate products or
product mixes (market segmentation)
 Select one or more market segments to enter
(market targeting)
 Establish and communicate the products’ key
distinctive benefits in the market (market
positioning)

12. Positioning
 Positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the target market’s mind.
 It is not what you do to the product, but what
you do to the mind of the prospect.
 Positioning requires that every tangible
aspect of product, price, place and promotion
must support the chosen positioning strategy.

13.  How many differences to promote?
 Each company must decide how many
differences to promote to its target customers.
 Many marketers advocate promoting only one
central benefit (Unique selling proposition)
 Double benefit positioning may be necessary
if two or more firms claim to be the best on
the attribute.

14.  The companies must avoid four major
positioning errors
1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning

15. Market targeting
 Once the firm has identified the market-
segment opportunities, it has to decide
how many and which ones to target
 Evaluating the market segments the
firm must look into two factors:
The segment’s overall attractiveness and
the company’s objectives and
resources.

16. Selecting the market
segments
 Single segment concentration
The company may select single segment and if
it captures segment leadership, the market
can earn a high return on its investment.
 Selective specialisation
Here the firm selects a no. of segments, each
objectively attractive and approporiate

17. Single segment concentration
p1
p2
p3
m1 m2 m3

18. Selective specialisation
p1
p2
p3
m1 m2 m3

19.  Product specialization
The firm specialises in making a certain
product that it sells to several segments
 Market specialisation
Here the firm concentrates on serving
many needs of a particular customer
group.

20. Product specialisation
p1
p2
p3
m1 m2 m3

21. Market specialisation
p1
p2
p3
m1 m2 m3

22.  Full market coverage
Here a firm attempts to serve all customer
groups with all the products they might
need

23. Full market coverage
p1
p2
p3
m1 m2 m3

24. Full market coverage
Undifferentiated marketing: ignore maket-
segment differences and goes after the
whole market with one market offer.
Differentiated marketing: The firm
operates in several market segments
and designs different programs for each
segment.

25.  Differentiated marketing
1. Product modification costs
2. Manufactiring costs
3. Administrative costs
4. Inventory costs
As Differentiated marketing leads to both higher
sales and higher costs, nothing general can
be said regarding this strategy’s profitability.

26. Additional considerations
 Marketers must choose target markets
in a socially responsible manner.
1. Ethical choice of market targets
2. Segment interrelationships and
supersegments
3. Segment by segment invasion plans
4. megamarketing
5. Intersegment cooperation