What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.
Geographic segmentation “refers to segmenting markets by region of a country or the world, market size, market density, or climate” (143). Consumer goods companies take a geographic approach so they can continue to grow in the most effective ways. For example, I live in South Mississippi and work in a retail discount store. It is ALWAYS hot here and we only see snow once every few decades, so when our store gets in snow shovels, we have to market them for cleaning out horse stalls rather than for snow.
Explain the roles of marketing research and its importance in making marketing decisions.
According to the book, “marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision” (157). The roles are descriptive, diagnostic, and predictive. Descriptive role is for gathering the facts and answering questions. Diagnostic role explains data. Predictive role focuses on the “what ifs” and making plans (157). This research “provides decision makers with data on the effectiveness of the current marketing mix and with insights for necessary changes” (157).
What is competitive intelligence (CI)? Discuss how it helps managers and how it is used.
Competitive intelligence “helps managers assess their competitors and their vendors in order to become more efficient and effective competitors” (176). This helps companies focus on their strengths and how to stay on top, or it may help them see where they need to improve to be better. For examples, small stores may look up to major retailers to see what steps were taken to become such a huge success and implement those practices.
All quotes are from: Lamb, C. W., Hair, J., & McDaniel, C. (2020). MKTG: Principles of Marketing (13th ed.). Cengage.