Ch7-- Segmentation, Targeting, and Positioning

Question 1

What are the characteristics of a “good” market segment?

Answer 1

Need to be well separated and defined
Homogenous within the segment
Heterogenous between the segments
Substantial (in purchasing power)
 Operational variables (significant to the segmentation process) has to do w matter @ hand 
The key is picking the right variables

Question 2

What are the major groups of segmentation bases for consumer markets? (… divides mkt into…)

Answer 2

Geographic segmentation
Demographic
Psychographic
Behavioral

Question 3

What is the basic premise of “geodemographics?”

Answer 3

People w. similar characteristics tend to live in the same place

Question 4

What are the 4 strategies that could be used for selecting target markets?

Answer 4

Undifferentiated (mass) marketing
Differentiated (segmented) marketing
Concentrated (niche) marketing
Micromarketing (local individual marketing)

Question 5

What is the danger that marketers run when they introduce new products in market segments that are adjacent to those of their existing products?

Answer 5

Market cannibalization: loss in sales caused by company’s introduction of a new product that displaces one of is own older products
-company takes from its own mkt share

Question 6

What is positioning? What is repositioning?

Answer 6

Product positioning: way product is defined by consumers on important attributes
Repositioning : Process of changing target markets perception of an existing product.

Question 7

Define geographic segmentation

Answer 7

where you live affects consumer behavior

Question 8

Define demographic segmentation

Answer 8

age cohorts, race/ethnicity, social status

Question 9

Define psychographic segmentation

Answer 9

motives (driven by needs)
Personality
Geodemographics
Lifestyles

Question 10

Define behavioral segmentation

Answer 10

Benefit sought: ex toothpaste w different goals (whitening, gum health, etc)
Usage rate: ex: large family uses more, single ppl less

Question 11

Undifferentiated ( mass) mkt

Answer 11

targets WHOLE mkt w. 1 offer, focus on common needs

Question 12

Differentiated (segmented) mkt

Answer 12

designs separate offers for diff. mkt segments.

goal is to have higher sales + stronger positioning, more $ than undifferentiated mkt

Question 13

Concentrated (niche) mkt

Answer 13

large share of a smaller mkt, limited resources, more effective/efficient

Question 14

Micromarketing (local / individual)

Answer 14

tailoring products + mkt programs 2 suit taste of specific individual and locations

Question 15

What is a market segmentation?

Answer 15

Process of forming groups of ppl w similar characteristics (needs and wants)

Question 16

What is a market segmentation?

Answer 16

Process of forming groups of ppl w similar characteristics (needs and wants)