Ch 6 - Market Segmentation, Targeting, and Positioning

Question 1

geographic segmentation

Answer 1

grouping of consumers on basis of where they live

Question 2

demographic segmentaion

Answer 2

grouping of consumers according o easily measured, objective characteristics such as age, gender, income

Question 3

psychographics

Answer 3

segmentation base delves into how consumers describe themselves; allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices

Question 4

self values

Answer 4

goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life

Question 5

self concept

Answer 5

image a person has of himself, component of psychographics

Question 6

lifestyle

Answer 6

how we live our lives to achieve goals

Question 7

VALS^tm

Answer 7

psychographical tool developed by strategic business insights, classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors

Question 8

behavioral segmentation

Answer 8

groups consumers based on benefits they derive from products, their usage rate, loyalty, and the occasion

Question 9

occasion segmentation

Answer 9

groups consumers based on when they purchase or consumer product or service

Question 10

benefit segmenation

Answer 10

groups consumers based on benefits they derive from products

Question 11

loyalty segmentation

Answer 11

strategy of investing in retention and loyalty initiatives to retain firm’s most profitable customers

Question 12

geodemographic segmentation

Answer 12

grouping of consumers on basis of a combination of geographic, demographic, and lifestyle characteristics

Question 13

PYSTE clusters

Answer 13

grouping of all neighborhoods in canada into 60 different lifestyles clusters

Question 14

undifferentiated targeting strategy (mass marketing)

Answer 14

marketing strategy a firm can use if product is perceived to provide same benefits to everyone, with no need to develop separate strategies for different groups

Question 15

differentiated targeting strategy

Answer 15

strategy through which firm targets several market segments with different offering for each

Question 16

concentrated/niche targeting strategy

Answer 16

marketing strategy of selecting single, primary targe market and focusing all energies on providing product to fit market’s needs

Question 17

micromarketing (one to one) marketing

Answer 17

an extreme form of segmentation that tailors a product or service to suit an individual customer’s needs or wants

Question 18

mass customization

Answer 18

practices of interacting on a one to one basis with many people to create custom made products or services, providing one to one marketing to the masses

Question 19

positioning

Answer 19

mental pictue that people have about company and its products or services relative to competitors

Question 20

positioning statement

Answer 20

expresses how company wants to be perceived by consumers

Question 21

perceptual map

Answer 21

displays in two or more dimensions, the position of products or brands in consumer’s mind

Question 22

ideal point

Answer 22

position at which particular market segment’s ideal product would lie on a perceptual map

Question 23

brand repositioning (Rebranding)

Answer 23

strategy in which marketers change brand’s focus to target new markets or realign brand’s core emphasis with changing market preferences