CH 9 -- Market Segmentation, Targeting and Positioning

Question 1

Consumer Products

Answer 1

Products bought by ultimate consumers for personal use

Question 2

Business Products

Answer 2

Goods and Services purchased for use either directly or indirectly in the production of other goods and services for resale

Question 3

Market Segmentation

Answer 3

Division of the total market into smaller, relatively homogeneous groups

Question 4

Market

Answer 4

Group of people with sufficient purchasing power, authority, and willingness to buy

Question 5

Geographic Segmentation

Answer 5

Division of overall market into homogeneous groups based on their location

Question 6

Core Based Statistical Area (CBSA)

Answer 6

Collective term for metropolitan and micropolitan statistical area

Question 7

Metropolitan Statistical Area (MSA)

Answer 7

Freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more

Question 8

Micropoliation Statistical Area

Answer 8

Area with at least one town of 10,000 to 49,999 people with proportionally few of its residents commuting to an outside area

Question 9

Consolidated Metropolitan Statistical Area (CMSA)

Answer 9

Urban area that includes two or more PMA’s

Question 10

Primary Metropolitan Statistical Area (PMSA

Answer 10

Urbanized county or set of counties with social and economic ties to nearby areas

Question 11

Core Region

Answer 11

Region from which most major brands get 40 to 80 percent of their sales

Question 12

Geographic Information Systems (GIS)

Answer 12

Software packages that assemble, store, manipulate and display data by their location

Question 13

Demographic Segmentation

Answer 13

Division of overall market into homogeneous groups base on variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in family life cycle;

also called socioeconomic segmentation

Question 14

Cohort Efforts

Answer 14

Tendency of members of a generation to be influenced and bound together in events occurring during their formative years

(~17-22)

Question 15

Video Game Generation

Answer 15

A cohort whose preferences and behaviors were being shaped at the same time as video games

Question 16

Family Lifecycle

Answer 16

Process of family formation and dissolution

Question 17

Engel’s Law

Answer 17

Three observations about the impact of household income on consumer spending behavior:

as a household income increases… a smaller percentage of expenditures goes for food; the percentage spent on housing, household operations and clothing remains constant, and the percentage spent on other items (recreation and education) increases

Question 18

Psychographic Segmentation

Answer 18

Division of the population into groups having similar attitudes, values and lifestyles

Question 19

AIO Segments

Answer 19

Items on lifestyle surveys that describe various activities, interests and respondents opinions

Question 20

VALS

Answer 20

Segmentation system that divides consumers into eight psychographic categories: innovators, thinkers, achievers, experiencers, believers, strivers, makers and survivors

Question 21

Product-Related Segmentation

Answer 21

Division of the population into homogeneous groups based on their relationship to a product

Question 22

80/20 Principle

Answer 22

Generally accepted rule that 80% of a products revenues come from 20% of its customers

Question 23

Undifferentiated Marketing

Answer 23

Target Market Strategy 1

Strategy that focuses on producing a single product and marketing it to all customers; also called Mass Marketing

Question 24

Differentiated Marketing

Answer 24

Target Market Strategy 2

Strategy that focuses on producing several products and pricing, promoting and distributing them with different marketing mixes designed to satisfy smaller segments

Question 25

Concentrated Marketing (Niche Marketing)

Answer 25

Target Market Strategy 3

Focusing marketing efforts on satisfying a single market segment

Question 26

Micro Marketing

Answer 26

Target Market Strategy 4

Targeting potential customers at a very narrow, basic levels, such as by zip code, specific occupation or lifestyle– possibly based on individuals themselves

Question 27

Positioning

Answer 27

Placing a certain product at a certain point or location within a market in minds of prospective buyers

Question 28

Positioning Map

Answer 28

Tool that helps marketers place products ina market by graphically illustrating consumers perceptions of competing products within an industry

Question 29

Repositioning

Answer 29

Changing the position of a product within the minds of prospective buyers relative to positions of competing products