Chapter 4

Question 1

market

Answer 1

a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services that is ways of satisfying those needs

Question 2

generic market

Answer 2

a market with broadly similar needs and sellers offering various often diverse ways of satisfying those needs

Question 3

product market

Answer 3

a market with very similar needs and sellers offering various close subsititute ways of satisfying those needs

Question 4

market segmentation

Answer 4

a 2-step process

1) naming broad product markets
2) segmenting these product markets in order to select target markets and develop suitable marketing mixes

Question 5

segmenting

Answer 5

as an aggregating process-clustering people with similar needs into a market segment

Question 6

market segment

Answer 6

a relatively homogeneous group of customers who will respond to a marketing mix in a similar way

Question 7

good market segments are…

Answer 7

homogeneous within
heterogeneous btw
substantial
operational

Question 8

homogeneous within

Answer 8

the customers in a market segment should be as similar as possible wit respect to their likely responses to marketing mix variables and their segmenting dimensions

Question 9

heterogeneous btw

Answer 9

the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

Question 10

substantial

Answer 10

the segment should be big enough to be profitable

Question 11

operational

Answer 11

the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables

Question 12

single target market approach

Answer 12

segmenting the market and picking one of the homogeneous segments as the firm’s target market

Question 13

multiple target market approach

Answer 13

segmenting the market and choosing two or more segments and then treating each as a separate target market needing a different marketing mix

Question 14

combined target market approach

Answer 14

combining tow or more submarkets into one larger target market as a basis for one strategy

Question 15

combiners

Answer 15

try to increase the size of their target markets by combining 2 or more segments

Question 16

segmenters

Answer 16

aim at one or more homogeneous segments and try to develop a different marketing mix for each segment

Question 17

qualifying dimensions

Answer 17

those relevant to including a customer type in a product market

Question 18

determining dimensions

Answer 18

those that actually affect the customer’s purchase of a specific product or brand in a product market

Question 19

clustering techniques

Answer 19

try to find similar patterns within sets of data

Question 20

customer relationship management

Answer 20

where the sellers fine-tune the marketing effort with info from a detailed customer data base

Question 21

positioning

Answer 21

refers to how customers think about proposed or present brands in a market

Question 22

positioning statement

Answer 22

concisely identifies the firm’s desired target market, product type, primary benefit, or point of differentiation, and the main reasons a buyer should believe the firms claims