Ch.7

Question 1

divide the total market into smaller segments

Answer 1

segmentation

Question 2

select the segment or segments to enter

Answer 2

targeting

Question 3

differentiate the market offering to create superior customer value

Answer 3

differentiation

Question 4

position the market offering in the minds of target customers

Answer 4

positioning

Question 5

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Answer 5

market segmentation

Question 6

group of consumer who respond in a similar way to a given set of marketing efforts

Answer 6

market targetting

Question 7

groups of customers, existing and potential, with common needs, values, and responsiveness to marketing variables

Answer 7

segments

Question 8

consumers who look similar are likely to behave similarly (most common, but basic segmentation)
- age and life cycle
- gender
- income

Answer 8

demographic

Question 9

consumers who live in close-proximity are likely to behave similarly
- countries or regions
- state or city
- counties

Answer 9

geographic

Question 10

consumers who think similarly are likely to respond similarly to marketing activity
- attitudes, values, and lifestyles
- social class
- AIO (activities, interests, opinions)

Answer 10

psychographic

Question 11

consumers who act similarly are likely to respond to marketing activity similarly
- loyalty status
- benefits
- usage occasion
- usage rate

Answer 11

behavioral

Question 12

• measurable
• accessible
• substantial
• differentiable
• actionable

Answer 12

characteristics of effective segmentation

Question 13

• undifferentiated (mass) marketing
• differentiated (segmented) marketing
• concentrated (niche) marketing
• micromarketing (local or individual) (ex: Groupon)

Answer 13

marketing targeting strategies

Question 14

• grow the market by bringing new customers in
• grow your product/service share by take share from the competition
• increase share by increasing purchase frequency of existing customers

Answer 14

identifying opportunities for growth

Question 15

firm decides to target several market segments and designs separate offers each

Answer 15

differentiated segmented marketing

Question 16

firm goes after a large share of one or a few segments or niches
(can fine-tune its products, prices, and programs to the needs of carefully defined segments)

Answer 16

concentrated niche marketing

Question 17

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments (effective approach for millenials)

Answer 17

micromarketing

Question 18

• important
• distinctive
• superior
• communicable
• preemptive
• affordable
• profitable

Answer 18

unique selling proposition (USP)

Question 19

1. Must make a proposition to the consumer
2. Must be unique
3. Must be so strong that it can move new customers to product

Answer 19

3 USP components

Question 20

promise of the value to a customer group, guides the developments of all marketing activities to engage with and reach target segments

Answer 20

positioning statement

Question 21

• target market
• brand name
• frame of reference/competition
• value proposition
• support(s) for the value proposition

Answer 21

key elements of a positioning statement

Question 22

The positioning statement is the mission and values (T/F)

Answer 22

False

Question 23

graphical representation of how customers perceive brands in a given industry/product category

Answer 23

perceptual maps

Question 24

Market _____ evaluates each market segment’s attractiveness and selects one or more segments to serve

Answer 24

targeting

Question 25

The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market _____

Answer 25

segmentation

Question 26

_____ segmentation divides buyers into different segments based on lifestyle or personality characteristics

Answer 26

psychographic

Question 27

______ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product

Answer 27

behavioral

Question 28

Using a(n) _____ marketing strategy, a firm might decide to ignore market segment differences

Answer 28

undifferentiated

Question 29

Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as ______

Answer 29

concentrated marketing

Question 30

Amazon and Geico set themselves apart with their smooth-functioning direct delivery strategy referred to as _____ differentiation

Answer 30

channel

Question 31

The winning value proposition by discount stores such as Walmart and PetSmart can be categorized as _____

Answer 31

the same for less