Question 1 of 10 1 Points

Intangible repositioning involves targeting a(n) ______ market segment with a(n)______product.

A. mass; existing

B. different; existing

C. new; new

D. existing; different

Question 2 of 10 1 Points

Which of the following would mostly likely be an attractive market segment?

A. Segments with a high likelihood of new entrants with new and better technology

B. Segments with a real probability of creating a differentiated offering that customers value

C. Segments where there are high barriers to exit

D. Segments that are characterized by strong aggressive competition

Question 3 of 10 1 Points

Which of the following statements is true about lifestyle segmentation?

A. It is based on the time of purchase relative to the launch of the product or on patterns of purchase.

B. It is carried out on the basis of heavy users, light users and non-users of a product category.

C. It provides an understanding of why people buy in a market and can aid the identification of opportunities.

D. It attempts to group people according to their way of living, as reflected in their activities, interests and opinions.

Question 4 of 10 1 Points

_____ may be defined as 'the identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy.'

A. Target marketing

B. Differentiation

C. Brand reflection

D. Market segmentation

Question 5 of 10 1 Points

When market segmentation reveals several potential targets, specific marketing mixes can be developed to appeal to all or some of the segments. This is called _____.

A. undifferentiated marketing

B. differentiated marketing

C. customized marketing

D. focused marketing

Part 2 of 2 - Case study

Introducing Brewdog 'In today's interconnected digital world, full of savvy Gen Y consumers, every single thing you do is marketing,' wrote Brewdog co-founder, James Watt. Today, Brewdog is famous for selling a wide range of distinctively tasty and unusually named beers and stouts through its cool, minimalistic urban bars, and in garishly coloured cans through major supermarkets. Watt and schoolfriend Martin Dickie began brewing beer as 22 year olds in a lock-up garage in Aberdeenshire, Scotland, in 2005. Two years later, they founded Brewdog, currently the fastest-growing food and drinks company in the UK, which is redefining the relationship between consumers and beer. Brewdog makes a wide variety of craft beers, rejecting the bland, gassy, commoditized drinks often produced by multinational brewing conglomerates in favour of quirky, distinctive, inventive and 'authentic' beers, using outlandish marketing and a seemingly 'anti-corporate' business model to engage its audiences. Brewdog's first bar opened in Aberdeen in 2010, and there are now more than 30 in the UK, 14 in Europe, one in Australia, one in So Paolo, and two (including a craft beer hotel and new brewing facility) in Columbus, Ohio, USA. Breweries in China and Australia are planned and, as the company's market valuation has passed 1 billion, it intends to consign 'big, bland beer' to the history books. While critics of the brand accuse it of pretentious hipsterism, shock tactics and over-promotion, it commands a hugely loyal band of consumers, who consider themselves fans. To fund its rapid expansion, Brewdog regularly sells shares to its fans - 'Equity for Punks'. It now has more than 75,000 shareholders, who have contributed approximately 55 million. Brewdog really can claim that its customers are invested in the brand's success.

The UK's problematic beer market The UK beer market has declined by a third in the past four decades, and around 20 public houses ('pubs') close for ever each week. This may be attributable to several factors. Traditional working-class industries such as coal mining, steelmaking and shipbuilding - all of which nurtured a male-dominated, beer-drinking culture - have largely disappeared, along with many of the pubs where workers would gather in evenings to socialize and drink. The UK and other governments have progressively sought to discourage problem drinking within society through alcohol taxation and marketing communications conveying the potentially deleterious health effects of alcohol - a form of 'demarketing', seeking to reduce, rather than increase, consumer demand. Since the Western economic crash of 2008, many consumers have found themselves lacking disposable income for frequent nights out, and have sought alternatives. It is more common nowadays for younger consumers to drink canned or bottled alcohol at home before going to a bar or nightclub, and for older consumers to arrange dinner parties in which guests 'bring a bottle' - usually of wine. In fact, the UK is now Europe's biggest consumer of wine per capita, despite having only a very small domestic wine-making industry, as wine has quickly become a drink of the masses. Moreover, spirits, cocktails, 'mixers' and gin have been resurgent recently, as consumers seek inventive, distinctive and differentiated drinks - reflecting the fact that many people now drink not as a nightly social habit, but as a less frequent indulgence. Quality and authenticity fight back The Campaign for Real Ale (CAMRA, founded in 1971) in England seeks to encourage the brewing of 'quality' ales that differ substantially from those of multinational conglomerates. Championing quality beers, pubs and bars, CAMRA defines 'real ale' as beer brewed using water, hops, barley and yeast, free from added carbon dioxide, and literally 'living' or fermenting continuously in the cask (container), bottle or can from which it is served. The UK's thriving 'real ale' industry accounts for more than 11,000 different drinks and around 8 per cent of the beer market but, despite significant efforts to change the demographic, a disproportionately large number of enthusiasts are male, middle aged and middle class. Even among the Baby Boomer and Generation X segments, which form their natural demographic hinterland, 'real ale buffs' (i.e. consumers and enthusiasts of real ale) are often considered unfashionable. The United States also experienced a reaction against bland, commoditized corporate beer offerings, with a flourishing craft beer industry. Craft beer differs from real ale insofar as the qualifying criteria are less stringent. Most craft beers use powerful, bitter-tasting hops from the west coast of America, and are served cold. Brewdog contends that the term 'real ale' is meaningless and anachronistic, considering itself a maker of craft beers, but it helps smaller craft beer and real ale breweries to establish themselves, distribute their products and challenge the corporates. It enjoys experimenting, often making small, one-off batches of unusually flavoured concoctions - its grapefruit-infused Elvis Juice and the extra-strong Cocoa Psycho Russian Imperial Stout proving surprisingly popular. Brewdog versus the top dogs Many beer brands compete in the UK and Europe, and this can lead towards commoditization. Even Stella Artois, which declares itself 'reassuringly expensive', has been deeply discounted in supermarkets such as Asda, potentially distressing its brand. Many household brands are owned by a few multinational conglomerates (e.g. Budweiser, Michelob and Rolling Rock by Anheuser-Busch, Guinness and Harp by Diageo). Some bigger players (e.g. Diageo, Carlsberg, Heineken) are represented in the UK by a self-founded, self-regulating industry watchdog called the Portman Group. Its declared aim is to promote responsible drinking and marketing, but Brewdog founder, James Watt, has called it a 'thinly veiled cartel ... making sure their member companies entrench their market position' - in other words, the ringfencing and bolstering of their corporate privilege at the cost of consumers and of smaller competitors. The Portman Group often criticizes Brewdog. One instance was when a Brewdog advert used the line, 'Drink fast, live fast, sleep late and rip it up down empty streets', which the Portman Group said encouraged irresponsible drinking. On another occasion, the Portman Group objected to Brewdog using the term

'aggressive' on a label, so Brewdog instead launched a product called SpeedBall, named after a powerful heroin and cocaine-based drug, which was immediately banned by the Portman Group and garnered huge publicity. Brewdog appears to enjoy controversy and fighting establishment figures. An 18 per cent stout - six times stronger than many beers - caused much consternation in the industry, although it was sold in only very small quantities through a controlled channel. Brewdog used the resulting publicity and word-of-mouth communications to launch a 0.5 per cent ABV beer called Nanny State, thus being paradoxical and unpredictable. Segmentation In pursuing its stated aims of encouraging people to be passionate about craft beer and challenging the Portman Group members, Brewdog must appeal to a broad demographic. James Watt contends that the company must expand rapidly and constantly to achieve this. Therefore, the market segment that makes up so many real ale enthusiasts - white, middle-class, middle-aged men - would simply be too narrow and unsustainable to fuel Brewdog's business model or mission. In short, it needs younger consumers, belonging to Generation Y, and particularly millennials, and a larger proportion of women. This is achieved through a segmentation strategy that is often behavioural but mainly psychographic. By having a strong brand personality, which suggests the rebel/outlaw archetype, confronting the establishment, appearing subversive and having leaders who publicly personify the brand, the relationship between Brewdog and its customers is built on shared values and a short psychological distance, and is therefore more powerful. Targeted communications and branding Brewdog is extremely transparent in its internal communications. Production and retail updates are issued weekly to its teams, and its weekly company newsletter, DogTales, is also made available externally. 'Crew Members' at all levels have complete freedom to challenge colleagues, managers and processes, enjoy access to the organization's monthly profit and loss figures, and are fully involved in the recruitment of their colleagues. In its external marketing communications, Brewdog aims to be direct, honest, fresh and uncompromising. It is sufficiently transparent to publish its recipes, allowing fans to brew their own. One video on its website, entitled 'Don't buy the advertising', showed a Brewdog poster strapped across a tower block, which was then demolished. Another video shows one of the co-founders throwing bottles of beer into the air while the other blasts them with a shotgun. In 2015, they dropped stuffed cats on to the City of London (and its 'fat cats') from a helicopter to celebrate crowdfunding 5 million - and these are not even its most outrageous or humorous publicity stunts. Brewdog utilizes a range of approaches to attract, engage and retain customers. In 2018, it gave away one million beers, prompting customers to spread the word to friends. An Intergalactic Bar Visa stamp book (itself a modern variation on a traditional technique used by local chapters of CAMRA) is available to fans, setting out challenges, such as the 'Flying Scotsman', in which customers have at least one drink in all the brand's Scottish bars. The Brewdog Chain Gang is an initiative encouraging cycling clubs to use Brewdog bars as their clubhouses - riders log their ride details in a joint Strava/Brewdog competition table, engendering gamification and community. Equity Punks (shareholders) get ID cards giving discounts, free beers on their birthdays, an invitation to the Annual General Meeting (which is in the form of a music festival) in Aberdeen, a Craft Beer for the People book, and certain voting rights. Boosted benefits for high-value shareholders include factory tasting and dinner tours, free trips to the craft beer hotel in Columbus, Ohio, opportunities to distil Lonewolf Whisky and keep cases of one's own-recipe beer, and even installation of a Brewdog bar, with three taps, a keg and fridge, at home. Positioning through values Brewdog has very distinctive values - originality, daring, non-conformity, inclusivity and fun - which permeate every aspect of the brand's DNA. In aiming to 'revolutionize the beer industry and completely redefine British beer-drinking culture', its mission is 'to make other people as

passionate about great craft beer as we are'. Brewdog has selected its 1,000+ staff very carefully, and treats them exceptionally well, aiming to be the best company to work for, ever. The first 'Living Wage' employer in the sector, it provides staff benefits such as phone counselling services, private healthcare, generous pension contributions, discounts, a monthly beer allowance, early Friday home time, 'beer schools' and support through prestigious training degrees (successful graduates getting significantly boosted salaries), as well as childcare vouchers - which it says are 'not redeemable in Brewdog bars'! It also has a number of unusual employee initiatives: in addition to the enhanced maternity and paternity allowances, it grants one week's paid 'pawternity leave' to owners of new puppies, to allow them to start the housetraining process and bond with their dog; dogs are allowed to accompany office staff to work; a Unicorn Fund donates 10 per cent of all company profits to charities voted for by staff and Equity Punks (shareholders); it shares a further 10 per cent of its profits among all its staff teams, with all ranks benefiting equally; it will match any staff charitable fundraising up to 200 with a donation; and it grants staff four weeks' paid sabbatical every five years, plus an all-expenses Copenhagen Beer Festival trip after ten years. Conclusion Brewdog has travelled a huge distance in a very short time without spending heavily on advertising, selling out or becoming corporate. It has enthused customers and fans, crowdsourcing investment from them and generating word-of-mouth communications among them. It offers a broad and varied product range, a highly visionary and democratic ethos, visible and vocal leaders, an engaging and fun experience in its bars or from afar, and - perhaps most important of all - an extremely differentiated brand that appeals to younger adults and intuitively taps in to the anti-establishment Zeitgeist.

Question 6 of 10 1 Points

What is the process of identifying groups of customers with homogeneous needs?

A. Market segmentation

B. Market development

C. Market targeting

D. Market identification

Question 7 of 10 1 Points

Bulldog's target marketing strategy can be defined as:

A. undifferentiated marketing.

B. differentiated marketing.

C. focused marketing.

D. customized marketing.

Question 8 of 10 1 Points

Which tool can Bulldog use in in order to determine the position of a brand in the marketplace?

A. Perceptual map

B. SWOT analysis

C. Situation analysis

D. PESTEL analysis

Question 9 of 10 1 Points

Bulldog's psychographic segmentation strategy is based on:

A. social class and usage.

B. benefits sought and income.

C. lifestyle and personality.

D. purchase behaviour and life cycle.

Question 10 of 10 1 Points

Bulldog's positioning strategy is based primarily on:

A. price.

B. values.

C. benefits.

D. features.