MBA 706 - EXAM 3 QUESTIONS AND
ANSWERS UPDATED (2024/2025)
(VERIFIED ANSWERS)
User Status - ANS ✓Markets can be divided on the basis of user status, including
non-users, first-time users, and regular users.
Loyalty Status/Brand Enthusiasm - ANS ✓Markets are divided on the basis of
the extent and depth of their loyalty to particular brands or stores. Ex: Airline
frequent flyer programs.
Psychographic - ANS ✓Markets are divided using psychographic characteristics
such as personality, value, lifestyle, etc. Ex: Car manufacturers; Gap (BR, Gap, Old
Navy, Athleta, Hill City, Janie and Jack).
Factors to consider after segmentation - ANS ✓Size and growth potential of
each segment, structural attractiveness, organization's objectives and resources
Five patterns of market coverage - ANS ✓•Single segment concentration
•Selective specialization
•Product specialization
•Market specialization
•Full market coverage
Single Segment Concentration - ANS ✓Firm focuses on a single segment. Very
high-risk strategy, but usually works well for small companies. Can develop a
strong market position.
MBA 706
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MBA
Selective Specialization - ANS ✓Firm focuses on several segments. Reduces risk
of concentrating on just one segment.
Product Specialization - ANS ✓Firms market a particular product type to
different segments
Market Specialization - ANS ✓Firms target a particular segment and satisfy its
needs with various offerings
Full Market Coverage - ANS ✓Firms target all (most) segments with the
products they need
Two interrelated issues when deciding which of the five approaches to
adopt - ANS ✓Nature of current strategy, organization resources and capability
Product Positioning - ANS ✓The position within the market that the product is
to occupy. The perception of the brand or organization by the target markets.
Walmart vs. Whole foods
Process of Positioning - ANS ✓•Identifying the organization or brand's possible
competitive advantages
•Deciding on the ones to be emphasized
•Implementing the positioning concept
Confused Positioning - ANS ✓consumers are confused as to what the
organization stands for, maybe due to too many claims made by the company
Over-Positioning - ANS ✓consumers perceive the organization's products too
expensive and fail to recognize the full range of products
MBA 706
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