Chapter 1: STP

Question 1

Segmentation

Answer 1

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

Question 2

Homogenous market segments

Answer 2

2 market segments that will respond similarly to marketing stimuli (advertising), share similar interests, needs, locations…

Question 3

Heterogenous market segments

Answer 3

2 market segments that will respond differently than the ones out of the other market segments

Question 4

Objective segmentation criteria

Answer 4

Can be measured simply & objectively (e.g. age, income, gender, place of residence, education, job title…)

Question 5

Psychographic (inferred) segmentation criteria

Answer 5

Must be defined first before classifying people into groups ex. Lifestyle, personality, social class …

Question 6

Firmographics

Answer 6

The process of dividing customers into groups based on shared company or organization attributes

Question 7

General segmentation criteria

Answer 7

Variable that hold in all behavioural circumstances ex. A person is always his or her age no matter the buying situation

Question 8

Specific/behavioural segmentation criteria

Answer 8

Divides customers into groups based on their behavior, including how they use a product or service

Question 9

What type of segmentation criteria is geographic segmentation?

Answer 9

Objective & General segmentation criteria

Question 10

What type of segmentation criteria is demographic segmentation?

Answer 10

Objective & general segmentation criteria

Question 11

What type of segmentation criteria is firmographic segmentation?

Answer 11

Objective & general segmentation

Question 12

Stages of buyer readiness

Answer 12

1) Awareness
2) Knowledge
3) Liking
4) Preference
5) Conviction
6) Purchase

Question 13

Stages in product adoption curve

Answer 13

1) Innovators
2) Early adopters
3) Early majority
4) Late majority
5) Laggards

Question 14

Innovators

Answer 14

The first 2,5% of consumers to adopt a new idea. Innovators are adventurous. They try new ideas and take some risk in the process.

Question 15

Early adopters

Answer 15

2,5% - 15,5% of consumers to adopt a new product. Early adopters are important because their opinions are listened to in their communities.

Question 16

Importance of early adopters

Answer 16

Their opinions are listened to in their communities

Question 17

Early majority

Answer 17

Wizards and weighers, not leaders, but they still accept a new idea fairly quickly.

Question 18

Late majority

Answer 18

Skeptical and accept the innovation only after the majority has already tried it

Question 19

Laggards

Answer 19

Suspicious of change and only adopt an innovation when it has itself almost become a tradition