SENIOR HIGH

Principles of Marketing
SCHOOL

Supplementary Materials
rd
(3 Quarter - Module 5)

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PRINCIPLES OF MARKETING
(Localized Module)
3rd Quarter – Module 5
Week 9

The Target Marketing and the Market STP

(Segmentation, Targeting and Positioning)

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For the learner:
Welcome to the Introduction to Philosophy of the Human Person Alternative Delivery Mode (ADM)
Module on Principles of Marketing.

The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning
resource signifies that you as a learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of the
learning resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or competencies
you are expected to learn in the module.

What I Know This part includes an activity that aims to check what
you already know about the lesson to take.

What’s In This is a brief drill or review to help you link the current
lesson with the previous one.

What’s New In this portion, the new lesson will be introduced to you
in various ways such as a story, a song, a poem, a
problem opener, an activity or a situation.

What Is It This section provides a brief discussion of the lesson. This aims to
help you discover and understand new concepts and skills.

What’s more This comprises activities for independent practice to

solidify your understanding and skills of the topic.

What I have learned This includes questions or blank sentence/paragraph to

be filled in to process what you learned from the lesson.

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 Assessment This is a task which aims to evaluate your level of
mastery in achieving the learning competency.

Additional In this portion, another activity will be given to you to enrich

Activities your knowledge or skill of the lesson learned. This also
tends retention of learned concepts.

Answer Key This contains answers to all activities in the module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a
separate sheet or the prescribe answer sheet of your teacher in answering the exercises.

2. Do not forget to answer What I Know before moving on to the other activities included in the
module.

3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your answers.

5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

7. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult
your teacher or facilitator. Always bear in mind that you are not alone.

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 Week 9
What I Know Day 1

Direction: Multiple Choice. Read the sentences and choose the correct answer that describe in the
sentences. Write your answer in your answer sheet.

1. The process of breaking a market into several segments and then choosing and focusing the
marketing efforts to the selected segment or segments.
a. Segment Marketing c. Target Marketing
b. Consumer Segmentation d. Market Positioning
2. A market into several segments and then choosing and focusing the marketing efforts to the
selected segment or segments.
a. Segment Marketing c. Target Marketing
b. Consumer Segmentation d. Market Positioning
3. The way the brand is defined by customers on important attributes – the place the product
occupies in consumer’s mind about competing products.
a. product positioning c. consumer goods
b. branding d. merchandizing
4. The advantage of the company or brand over its competitors by providing customers with a
greater value such as lower prices or unmatched benefits that rationalize the competitive
advantage.
a. branding c. brand superiority
b. brand positioning d. competitive advantage
5. A strategy in which companies pursue a great share of one or few submarkets.
a. concentrated marketing strategy c. undifferentiated marketing strategy
b. differentiated marketing strategy d. consumer marketing strategy
6. A strategy used in covering the market by ignoring the market segment distinction and pursue
the entire market with a single offer.
a. concentrated marketing strategy c. undifferentiated marketing strategy
b. differentiated marketing strategy d. consumer marketing strategy
7. A strategy used to cover the market by which companies choose several segments in the market
and create a specific offer for each.
a. concentrated marketing strategy c. undifferentiated marketing strategy
b. differentiated marketing strategy d. consumer marketing strategy
8. Positioning involves providing the most upscale product or service and charging a higher price to
cover the increased costs.
a. More for More c. Same for Less
b. More for the Same d. More for Less
9. Positioning is useful in attacking competitors using more-for-more positioning by introducing
brand offering comparable quality at a lower price.
a. More for More c. Same for Less
b. More for the Same d. More for Less
10. Positioning involves meeting consumer’s lower performance or quality requirements at much
lower price.
a. More for More c. Same for Less
b. More for the Same d. More for Less

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 Week 9
The Target Marketing and the Market STP

Aim… Hold… Fire”

Targeting the right target is the name of the game in marketing……

The Big Idea

There are so many ways to do marketing. Marketers can make use of traditional approaches to market
their brands. They can produce and air television commercials on high rated soap operas of the local
leading networks. Alternatively, perhaps explore the wonders of non-traditional approaches to
marketing like designing and posting viral ads on popular social networking sites.

Whatever marketing approach or approaches chosen by the marketers, the main goal of it remains the
same, which is to communicate the marketing message across the appropriately targeted audience.

In this lesson, the concept of target marketing will be explained. The elements of market segmentation
will be given an emphasis. Moreover, lastly, market targeting and market positioning will be explored.

What I Need to Know

The Game Plan:

At the end of the lesson, the learners should be able to:
1. Identify and segment market for a product or service
2. Select appropriate target market segment and its positioning
3. Differentiate mass marketing to segment marketing

Get Down to Business

Most marketers nowadays start their marketing exploration with target marketing. Companies are
becoming more sensitive in selecting the right market for their products or service. They have gone
away from utilizing mass marketing approach and dealt with the importance of market segmentation
and targeting concepts in merchandising goods and services.

Therefore, target marketing is the process of breaking a market into several segments and then
choosing and focusing the marketing efforts to the selected segment or segments.

Through target marketing, the marketers will be able to focus their marketing efforts on consumers or
buyers who have the most appreciation of the values of the product. Thus, it avoids wasting of
company’s effort on marketing the products or service to unsuitable consumers or buyers.

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There are three (3) basic steps to do target marketing. The first step is market segmentation in which
the market is divided into distinct groups or segments of consumers or buyers (see Lesson III for the
definition). The second step is market targeting in which marketers select one or a few key segments of
the market the will receive the marketing efforts of the company. Moreover, the third step is market
positioning in which the companies decide what position does the product or services will occupy in the
segments.

Step 1. Segment Marketing

Step 2. Market Targeting

Step 3. Market Positioning

Figure 5.1. Three Basic Steps to Target Marketing

Fresh Perspective: Mass Marketing vs. Segment Marketing

In mass marketing, marketers merchandise a product or service to immense number of customers
without consideration of their differences in the perceived needs and how they will respond to the
marketing efforts of the brand. For example, a restaurant offers the same promotion of fried chicken
meal to all its outlets to generate a demand to the market for its new product. Some may buy the
product because the promotion is appealing to them. Alternatively, some may ignore it because they are
not lured with the promotional content of the brand.

Needless to say that mass marketing has limited appeal. Marketers need to know that not all customers
are alike in the way they think and react. It does not follow that a marketing effort that succeeds in a
geographic area or one demographic will also be successful in others. Hence, the response to the
promotion of the fried chicken meal to university belt areas might be overwhelming that might be
contradicting to the impact in the high-end residential areas.

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Nowadays, many companies practice segment marketing simply because they have realized that buyers
differ in their needs, perceptions, attitudes and behavior when it comes to buying products or services.
Companies make efforts to segment the market and concentrate their marketing campaign to the selected
segments that they find more suitable for their brands.

What are the advantage of segment marketing?

1. The companies will be able to promote the brand more strategic by aiming for consumers who
can be served best.
2. The companies will be able to merchandise the brand effectively by enhancing its approach to
match the needs of the chosen segments of the market.
3. The companies will be able to find competitive advantage in the market by serving the segments
that are not yet served by the competitors.

Appreciating Market Segmentation

There are four (4) basic ways to do consumer market segmentation.

1. Geographic
2. Demographic
3. Psychographic
4. Behavioral

Geographic

Demographic

Psychographical

Behavioral

Segmented
Market

Figure 5.2. Four Basic Ways to Gain Market Segmentation

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Geographic Segmentation. The market is divided into several geographical units such as continental,
national, regional, cities, municipals and barangays. The marketing operations of many companies in the
country cover more than one geographical area. Most marketers create localize promotional tools to
match the needs of the geographical areas. Sometimes, they explore the market to reach and foster
untouched geographical territories.

Table 5.1. Segmentation According to Geographical Areas

Continental Segmentation Asian, European, American, African continents
National Segmentation Philippines, Japan, Australia, Germany, USA
Regional Segmentation Luzon, Visayas and Mindanao
City and Municipal Segmentation Manila City, Quezon City, Makati City, Lian Municipal, Obando
Municipal, Kawit Municipal

In doing the geographical segmentation, marketers may also determine the density, population and
climate of the segmented area.

Demographic Segmentation. The market is divided into groups according to age, gender, family size,
family life cycle, income, occupation, education, religion, race, and nationality. These factors are widely
used for segmenting consumer groups. This is because of the extent of the relationship between the
customer’s needs, wants and utilization scales and demographic variables are often, if not always,
adjacent as observed by the marketers. It is also said that demographic variables are easier to determine
than other types of variables.

Table 5.2. Segmentation According to Demographic Factors

Age Infant, children, teenager, middle age, older population (retired
and matures)
Gender Male, Female, Homosexual
Family Size 1 to 2, 3 to 4, 5 to 6, 6 and up
Family life-cycle Independently single, newlywed, married with no children,
married with children, single parent, single separated, single
widowed
Income (Monthly or Annually) Under P5,000, P5001 to P10,000, P10,001 to P20,000, P20,001
toP30,000 to P40,000, P40,000 to P50,000, P50,001 to P60,000,
P60,001 and up
Occupation Executive, professional, technical worker, retirees,
unemployed, self-employed, student
Education Grade school, high school, college, vocational, post graduate,
illiterate
Religion Roman Catholic, Protestant, Iglesia ni Kristo, Christian, Muslim,
Hindu, Buddhist
Race Asian, white, black, Hispanic
Generation Bay Boomer, Generation X, Millennial
Nationality Filipino, Chinese, Japanese, American

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There are products or service that obviously utilize segmentation of the market. For milk brands, many
companies explore the market according to age. For example, there are milk products that intended
only for infants and toddlers, for growing children, for health conscious young adults, for pregnant
mothers and aging adults.

For banking services, most companies determine their market segments according to income and
occupation. There are some banks offers service like savings and loans for farmers, professional, retirees
and student. For credit card service, the monthly or annual income of the applicants is one of the
essential factors that the banks are considering in approving the card application.

For cars, majority of the company focuses their sales effort on income, family size and family life cycle.
For example, car companies offer luxury cars to bachelor business people or large van for middle-class
family with 6 to 8 household members.

For cigarette brands, some companies consider gender as one of the important determinants in
segmenting the market. There are cigarette products that cater only to women. In some liberal
countries, there are cigarette brands that cater gays and lesbians.

Psychographic Segmentation. The market is divided into various segments according to social class,
lifestyle and personality characteristics.

Table 5.3. Segmentation According to Psychographic Aspects

Social Class Social Grade Social Status

A Upper-upper class
B Lower-upper class
Upper C Upper middle class
Broad C Middle class
D Upper-lower class
E Lower-lower class
Lifestyle Fast phasing, socially active, career driven, family focused
Personality Ambitious, impulsive, domineering, passive

Every customer belongs to a certain social class. This is depending on the customer’s buying power. The
buying power of customers are determined by their background, earnings or income and buying habits.

The marketers find the lifestyle of the customers useful in merchandising brands. Many marketing
practitioners believe that most customers pick brands that exemplify their lifestyle. For example, career
was driven and busy people often think of convenience and durability in choosing brands to suit their
hectic routine. However, high-class people who are active in attending social gatherings choose brands
that display elegance and beauty to match their lifestyle. Personality, on the other hand, is useful to the
marketers.

The personality variables are also useful in segmenting the market. Companies develop and designate
personalities to the brands that are consistent with customer’s personalities. This brand personality is
very typical in products such as insurance, perfume, and cosmetics.

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Behavioral Segmentation. The market is divided into groups according to buyer’s knowledge, attitudes,
uses and response to a product.

Table 5.4. Segmentation According to Behavioral Factors

Buying frequency Regular, occasional
Benefits Quality, durability, affordability
User status Non-user, possible user, first time user, rare user, seasonal user, regular
user, formerly user
User rates Light user, moderate user, heavy user
Loyalty status None, small, medium, strong, absolute
Readiness stage Not aware, aware, knowledgeable, interested, eager, intending to buy
Attitude toward product Positive, enthusiastic, passive

One of the factors that marketers should consider in doing behavioral segmentation is to divided the
market into groups based on the buying frequency. Does the customer buy the product occasionally or
regularly?

After determining the buying frequency of the customers, the marketers should also consider dividing
the market into groups based on different benefits that customers look for in a brand. Companies may
find a different perspective of customers. Some may seek for quality, some may look for affordability, or
some may consider both benefits. This benefit segmentation is useful to companies that would like to
clarify the type benefits that appeal to the customers. Whatever benefits will prevail in this
segmentations; marketers may capitalize on it in marketing the brands.

User status can also be utilized in segmenting the market. Grouping the customers as Non-user, possible
user, first time user, rare user, seasonal user, regular user and formerly user of a brand is likely means of
segmentation.

Another way to segment the market is through usage rate. Marketers may identify the market using the
categories like light user, moderate user or heavy user of the product.

The loyalty of customers to brands is an important factor that companies must look at in selling a brand.
Marketers may segment the market based on the loyalty of customers to the stores, brands and
companies. Thus, the customers can be loyal, somehow loyal or perhaps completely not loyal to a brand.

In segmenting business markets, marketers may use many of the same factors used in segmenting
consumer market. Business buyers can be segmented through geographical, benefits, user status, usage
rate, or loyalty factors.

However, there are unique factors that can be considered in segmenting business markets such as
operating characteristics, purchasing approach, situational factors and personal characteristics.

By considering the segments instead of grasping the whole market, companies have much better
opportunities to merchandise the brands strategically by concentrating the marketing efforts on specific
segments of the market.

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 Comprehending Market Targeting
After segmenting the market, the marketers have to evaluate the numerous segments and determine
which segment should be served. This is the second step that marketers have to undergo in target
marketing.

There are three (3) factors to consider in evaluating market segments.

1. The segment size and growth. The company must gather and examine the date on present sales,
projected sales rates and expected gains for various segments. The segments that have right size
and growth qualities will gain the interest of the company. However, it does not follow that
segments which have largest and fastest growing prospect are the most appealing ones for the
majority of the companies. Other factors such as competition and resources of the company to
continue the venture should be considered.

2. The segment structural attractiveness. There are some major structural elements that affect the
segment attractiveness in the long run. The marketers must assess the following:
 The competition (the present and possible competitors)
 The substitute products that can be potential thereat to the brand
 The buyer’s and supplier’s relative power

3. Examining the company’s objectives and resources. The company’s objectives and resources
should harmonize with the opportunity that the identified segments bring. Also in this process,
marketers must consider the possible environmental hazards in following the opportunity. The
company should ensure to prosper in gaining the identified segments.

With this evaluation of the segments, the companies are expected to identify one or more segments of
the market that are worthy to engage. In this process, the target market selection should be performed.

The target market is said to be the process of breaking a market into several segments and then
choosing and focusing the marketing efforts to the selected segment or segments.

Companies may utilize one of the three strategies in selecting a target market.
1. Undifferentiated marketing
2. Differentiated marketing
3. Concentrated marketing

Strategy 1. Undifferentiated marketing is a strategy used in covering the market by ignoring the
market segment distinctions and pursue the entire market with a single offer. For example, a
manufacturer of potato chips will offer one brand for the whole customers.

To make this strategy successful, it is suggested that companies should resort to have a wide
distribution and massive exposure of the product through promotion and advertising. The objective
of this is to leave a superior impression or image to the minds of the customers. However, this
strategy received doubts to modern marketers.

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 Strategy 2. Differentiated marketing is a strategy used to cover the market by which companies
choose several segments in the market and create a specific offer for each.

The companies are expecting to have higher sales and a more solid position in a segment of the
market. For these reasons, most companies have practiced this strategy. Moreover, compared to
the similar marketing strategy, this second strategy produces total sales of the brands.

Regarding expenses, however, this strategy is costly because it produces different approaches and
variations of marketing depending on the number of market segments covered. Thus, the marketers
should weight the increase in sales against the increase in promotional or marketing operation costs
in utilizing this strategy.

Strategy 3. Concentrated marketing is a strategy in which companies pursue a high share of one or
few submarkets.

With this strategy, the companies attain a firm market position in the chosen segments because of
its extensive knowledge of the segment’s needs and the distinct reputation it receives. Also, the
companies gain diverse operating economies due to the expertise. However, the strategy entails
greater risks especially, when the market turns out badly.

In choosing the right strategy, the marketers must take into consideration of the following factors:

1. Resources of the company – concentrated marketing is very useful if the company’s

resources are limited.

2. Variability of the product – Undifferentiated marketing is suitable if there is standardization

and differentiated marketing is appropriate if there is variance.

3. Product’s stage in the life cycle – Undifferentiated marketing or concentrated marketing

may be proper to use in the beginning stage if limited product offerings are used and
differentiated marketing may be utilize if the people offerings in the later stage are
expanded.

4. Variability in the market – Undifferentiated market can be used if the tastes of the market
are the same.

5. Marketing strategies of the competitors – companies must be cautious on how competitors

segment their market. Marketers should take a look at the market segment and found out if
there are unexplored segments that can be developed and targeted.

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 Identifying Positioning Strategies

The last phase in target marketing is the market positioning. After deciding on the segments to
penetrate, the companies should start to identify the position that they want to fill up in those
segments.

In this stage, the concept of product position should be well understood by the marketers. It will help
them to strategize their brand promotion more effectively.

According to Kotler, product position is the way the brand is defined by customers on important attributes
– the place the product occupies in consumer’s minds relative to competing products.

Often, customer have limited time to reevaluate product during their buying decision moments. Thus,
customers mentally assigned a position to brands. Meaning, customers may arrive at a certain position
of products by illustrating the ranking of those brands in their minds. For example, a child may draw in
his or her mind the order of food that he will buy in the canteen during his or her break time. The child
primarily prefers to buy a cheeseburger. If cheeseburger is not available, the child may resort to his or
her secondary choice, which is cheese dog sandwich. If cheese dog sandwich is also not available, the
child may turn to his or her tertiary choice, which is tuna sandwich. The order of choices of the child,
from burger to tuna sandwich is the position that he or she assigned to the said sandwiches.

With or without the marketer’s aid, customers may position brands. Thus, marketers should not take
their chances in letting product positions in the hands of the customers. Otherwise, the chances of
receiving weak position are likely to happen.

The marketers must plan positions that will provide their products and exceptional advantage in the
chosen target markets. Also, marketer should design marketing tools to establish the intended brand
positions.

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In choosing a positioning strategy, marketers may use these three basic steps.

Step 1. Recognizing a set of prospective competitive advantage wherein companies may build a
position. To do this, the marketers must first fully understand the customer’s needs and its
buying process more than how competitors understood them. From there, the marketer must
offer more value to winning and keep customers.

Competitive advantage means the advantage of the company or brand over its competitors by
providing customers with a greater value such as lower prices or unmatched benefits that
rationalize the competitive advantage.

However, not all companies may find many opportunities through product offering
differentiations and obtain a competitive advantage. In most instances, a permanent advantage
is hard to gain. Thus, most companies accept the fact that competitive advantage is only
temporary. There will always be new market challengers who will arise and throw their gauntlet
to the market leaders by offering more superior benefits or more competitive prices.

Nevertheless, the companies should continuously develop the value of its product and
safeguard its grounds by maintaining excellent customers relations and carefully observe the
trends in the competition.

The following are the specific ways to differentiate product offerings from those of the
competition:

1. Through product differentiation - it requires companies to identify the competitor’s physical

product differences regarding its features, performance, style, design and attributes. For
instance, the company may examine durability and reliability of its product against the
competing brands to find opportunities.

2. Through service differentiation – the company should differentiate the services that go with
the product. Companies may look into the following aspects of studying the competitors
services:
 Delivery service
 Training service
 Installation service
 Repair service

3. Through channel differentiation – the company may obtain a competitive advantage using
designing effective channel coverage, specialization and performance.

4. Through people differentiation – the company may invest to manpower by hiring and
developing competent people who are better than the people managed by the competitors.

5. Through image differentiation – the companies must create and establish distinctive image
of the brand that would set them apart from their competitors. Marketers may use symbols
in doing this.

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Step 2. Choosing the right competitive advantage. In this step, the companies need to decide on the
number of differences that they should promote. Through the popular notion tells people, ‘the more,
the merrier.’ However in choosing the right competitive advantage, many marketing experts agree that
companies must boldly promote only one salient benefits to the target market.

According to Rosser Reeves, this benefit is called the unique selling proposition or USP. Ideally, a
company should select one most important benefits among many attributes of the brand and focus on it
by endorsing the salient benefit as ‘number one’. For example, a company found out that among the
powdered detergent soaps available in the market today, their brand is the most affordable soap that
offers a solution in removing heavy stains. The company should capitalize on this competitive advantage
by claiming that their brand is the number one powdered detergent soap regarding price thus, makes it
the most economical heavy stain remover in the market.

Hence, marketers must know that most consumers recall ‘number one’ better, particularly those
consumers who are exposed to various competing communications. Therefore, it is a very smart move
for marketers to go for the number one attribute.

On the contrary, other marketing practitioners think that promoting more than one differentiating factor
or benefit is acceptable. This may be thru. However, they must take into consideration not to under or
to overuse positioning. This may lead the buyers to the abyss of confusion.

Undertone positioning may be weak. Consumers might not notice or remember the benefits that the
brand offers if the positioning is too subtle. On the other hand, overtone positioning may be
questionable. Consumers might think that the brand is just exaggerating its attributes. Therefore, the
positioning is not believable. Moreover, using many symbols to position a brand may lead to image
ambiguity. These things are dangerous to the companies and their brands.

Whether the marketers will highlight one or more than one differentiating factor, it is necessary to know
if the factors are relevant and valuable. The marketers must know which of these differences should be
promoted. Kotler and Armstrong provided criteria for determining which differences to promote.

1. Important
2. Distinctive
3. Superior
4. Communicable
5. Preemptive
6. Affordable
7. Profitable

Step 3. Choosing a comprehensive positioning strategy. After the determining the desired positioning of
the brand, it needs to be disseminated to the target consumers. It is necessary for the company to
choose a comprehensive positioning strategy. In doing this, the company should remember that
customers normally select brands that provide them with the most value. Thus the marketers should
find out reasons why consumers must buy their brands.

For this, the concept of brand positioning is vital. Kotler and Armstrong introduce various brand
positioning strategies.

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 1. More for More positioning involves providing the most upscale product or service and charging a
higher price to cover the higher costs.
2. More for the Same positioning is useful in attacking competitors using more-for-more
positioning by introducing brand offering comparable quality at a lower price.
3. Same for Less positioning can be a powerful value proposition. Companies using this positioning
may offer deep discount based on superior power and lower-cost operations.
4. Less-for-much-less positioning involves meeting consumers’ lower performance or quality
requirements at a much lower price.
5. More for less positioning is the winning value proposition.

Communication takes in after the companies have chosen a position for the brand. The role now of the
marketers is to deliver to the identified position to target audience. To attain this, the entire marketing
mix efforts for the brand should support the planned positioning strategy.

Positioning should not be left on the drawing board. It must be executed with utmost preciseness. The
marketing team should have a monitoring system that would carefully assess and evaluate the
positioning strategy from time to time because unexpected changes in the environment might have a
strong impact on its efficacy and create confusion to the consumers. Thus, marketers should be smart
enough to know when and how brand position must adapt the evolving trends in the market.

What’s More
Week 9
Day 2
The Synergy

Activity 5.1 Read the case guide

a. Identify the target market of the following products.
 Kopiko Cappuccino
 Nescafe Cappuccino
 Great Taste White
b. Determine their brand positioning.
c. Based on you market analysis of the brands, develop your brand of instant coffee
and provide the following:

Brand Name
Product benefits
Target Market Characteristics

a. Geographical
b. Demographical
c. Psychographic
d. Behavioral

Brand positioning

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Activity 5.2
1. A leading fast food chain in the country has currently considered shifting its paradigm in
targeting their clients. From children and young adults to adults, now they are
considering the retirees as one of their markets. One of the products they will launch to
cater the retirees is the Ube-Macapuno Pie.

Your group was hired to market the new product. How do you plan to market it?
Please use the matrix below.

Brand Name

Segmentation Plan

Targeting Plan

Positioning Plan

Week 9
What I have Learned
Day 3
Raise The Bar
Activity 5.3: Identification: Write the correct answer.

1. A Strategy used in covering the market by ignoring the market segment distinctions and
pursue the entire market with original offer.
2. Positioning involves meeting consumers’’ lower performance or quality requirements at a
much lower price.
3. Positioning involves providing the most upscale product or service and charging a higher
price to cover the higher costs.
4. The process of breaking a market into several segments and then choosing and focusing
the marketing efforts to the selected segment or segments.
5. A strategy used to cover the market by which companies choose several segments in the
market and create a specific offer for each.
6. A strategy in which companies pursue a high share of one or few submarkets.
7. The way the brand is defined by customers on important attributes- the palce the product
occupies in consumers’ minds about competing for products.

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 8. A market into several segments and then choosing and focusing the marketing efforts to
the selected segment or segments.
9. Positioning is useful in attacking competitors using more-for-more positioning by
introducing brand offering comparable quality at a lower price.
10. The advantage of the company or brand over its competitors by providing customers
with a greater value such as lower prices or unmatched benefits that rationalize the
competitive advantage.

II. Enumeration: Write the correct answer.

1-5. In selecting target marketing strategy, the marketers must take into consideration of the five factors.
1.
2.
3.
4.
5.

6-10. The five specific ways to differentiate product offerings from those of the competition:

6.
7.
8.
9.
10.

Week 9
Day 4
Additional Activities

Go Extra Mile

1. Cut and paste five (5) different print advertisements of various perfumes, which have a different
target market. Draw your target marketing analysis on each advertisement. Identify the brand
positioning of the perfumes.

2. Determine the brand positioning of five (5) detergent soaps that your mother has used. Ask her
about her experience in using the five detergents soaps. Let her identify the positioning of the
brand. Draw your analysis based in the generated data from your mother.

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 Assessment

Direction: Multiple Choice. Read the sentences and choose the correct answer that describe in the
sentences. Write your answer in your answer sheet.

1. Positioning of a product is based on:

a. The price charged for the product. c. The promotional pitch for the product.
b. Product characteristics. d. All of the above.
2. For marketers, geo-demographic classification is essentially based on an assumption that:
a. attitudes lead to the development of a lifestyle. c. where you live affects the things you buy.
b. lifestyle leads to the development of an attitude. d. social class is independent of geographical
location.
3. Developing a promotional programme for a new service begins with:
a. Choosing a promotional message c. Determining promotional objectives
b. Choosing an appropriate medium d. Evaluating alternative media
4. The factors such as the buyer’s age, life-cycle stage, occupation, economic situation, lifestyle,
personality, And self-concept that influences buyer’s decisions refers to which one of the following
characteristic?
a. Personal characteristics c. Psychological characteristics
b. Behavioural characteristics d. Demographical characteristics
5. The best single factor that indicates the social class is .
a. time c. occupation
b. fashion d. lifestyle
6. Marketing strategies are often designed to influence and lead to profitable
exchanges.
a. sales strategies c. consumer decision making
b. advertising strategies d. export strategies
7. The buying process starts when the buyer recognizes a .
a. product c. salesperson from a previous visit
b. an advertisement for the product d. problem or need
8. When customer expectations regarding product quality, service quality, and value-based price
are met or exceeded, a is created.
a. value line c. quality rift
b. planning excellence d. customer satisfaction
9. Consumers usually perceive higher-priced products as .
a. not within reach of most people c. having high profit margins
b. having a higher quality d. unpopular brands
10. Which of the following best describes a target market?
a. Close competitors of a business
b. The people who buy a business's products
c. Groups that do not buy a business's products
d. The individuals at whom a business's marketing strategies are aimed

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