7. Customer-Driven Marketing Strategy

Question 0

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Answer 0

Market targeting (or targeting)

Question 1

Dividing a market into smaller groups with distinct needs, characteristics or behaviours who might require separate products or marketing mixes

Answer 1

Market segmentation

Question 2

Actually differentiating the firm’s market offering to create superior customer value

Answer 2

Differentiation

Question 3

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

Answer 3

Positioning

Question 4

Dividing a market into different geographical units such as nations, states, regions, countries, cities or neighbourhoods

Answer 4

Geographic segmentation

Question 5

Dividing a market into groups based in variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality

Answer 5

Demographic segmentation

Question 6

Dividing a market into different age and life-cycle groups

Answer 6

Age and life-cycle segmentation

Question 7

Dividing a market into different segments based on gender

Answer 7

Gender segmentation

Question 8

Dividing a market into different income groups

Answer 8

Income segmentation

Question 9

Dividing a market into different groups based on social class, lifestyle or personality characteristics

Answer 9

Psychographic segmentation

Question 10

Dividing a market into groups based on consumer knowledge, attitude, use of, or response to a product

Answer 10

Behavioural segmentation

Question 11

Dividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item

Answer 11

Occasion segmentation

Question 12

Dividing a market into groups according to the different benefits that consumers seek from the product

Answer 12

Benefit segmentation

Question 13

Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries

Answer 13

Intermarket segmentation

Question 14

What are the requirements for effective segmentation?

Answer 14

Measurable
Accessible
Substantial
Differentiable
Actionable

Question 15

A set of buyers sharing common needs or characteristics that the company decides to serve

Answer 15

Target market

Question 16

A market-coverage strategy in which a firm decided to ignore market segment differences and go after the whole market with one offer

Broadest form of target marketing

Answer 16

Undifferentiated (or mass) marketing

Question 17

A market-coverage strategy in which a form decides to target several market segments and designs separate offers for each

Answer 17

Differentiated (or segmented) marketing

Question 18

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Answer 18

Concentrated (or niche) marketing

Question 19

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups

Includes local marketing and individual marketing

Answer 19

Micromarketing

Question 20

Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighbourhoods and even specific stores

Answer 20

Local marketing

Question 21

Tailoring products and marketing programs to the needs and preferences of individual customers—also called customised marketing, one-to-one marketing and markets-of-one marketing

Answer 21

Individual marketing

Question 22

The way the product is defined by the consumers on important attributes—the place the product occupied in the consumers’ minds relative to competing products

Answer 22

Product position

Question 23

Identifying a set of possible customer value differences
Choosing the right competitive advantages
Effectively communicating and delivering the chosen position

Answer 23

Steps of the differentiation and positioning task

Question 24

Ab advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices

Answer 24

Competitive advantage

Question 25

The full positioning of a brand—the full mix of benefits upon which it is positioned

Answer 25

Value proposition

Question 26

A statement that summarises the company or brand positioning—it takes the form: To (target segment and need), our (brand) is (concept) that (point of difference)

Answer 26

Positioning statement

Question 27

``` Product differentiation Services differentiation Channel differentiation People differentiation Image differentiation ```

Answer 27

Possible value differences and competitive advantage

Question 28

More for more, more for the same, the same for less, less for much less or more for less

Answer 28

Five winning value propositions