Ch. 6 Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

Market segmentation

Answer 1

Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Question 2

Market targeting (targeting)

Answer 2

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

Question 3

Differentiation

Answer 3

Differentiating the market offering to create superior customer value.

Question 4

Positioning

Answer 4

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

Question 5

Geographic segmentation

Answer 5

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

Question 6

Demographic segmentation

Answer 6

Dividing the market into segments based on variable such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Question 7

Age and life-cycle segmentation

Answer 7

Dividing a market into different age and life-cycle groups.

Question 8

Gender segmentation

Answer 8

Dividing a market into different segments based on gender.

Question 9

Income segmentation

Answer 9

Dividing a market into different income segments.

Question 10

Psychographic segmentation

Answer 10

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

Question 11

Behavioral segmentation

Answer 11

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.

Question 12

Occasion segmentation

Answer 12

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

Question 13

Benefit segmentation

Answer 13

Dividing the market into segments according to the different benefits that consumers seek from the product.

Question 14

Intermarket (or cross-market) segmentation

Answer 14

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

Question 15

Target market

Answer 15

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

Question 16

Undifferentiated (mass) marketing

Answer 16

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

Question 17

Differentiated (segmented) marketing

Answer 17

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

Question 18

Concentrated (niche) marketing

Answer 18

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

Question 19

Micromarketing

Answer 19

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

Question 20

Local marketing

Answer 20

Tailoring brands and promotions to the needs and wants of local customer segments–cities, neighborhoods, and even specific stores.

Question 21

Individual marketing

Answer 21

Tailoring products and marketing programs to the needs and preferences of individual customers.

Question 22

Product position

Answer 22

The way a product is defined by consumers on important attributes–the place the product occupies in consumers’ minds relative to competing products.

Question 23

Competitive advantage

Answer 23

An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.

Question 24

Value proposition

Answer 24

The full positioning of a brand–the full mix of benefits on which it is positioned.

Question 25

Positioning statement

Answer 25

A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).