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Marketing > Chapter 4: Segmentation, Targeting, Postitioning > Flashcards

Chapter 4: Segmentation, Targeting, Postitioning Flashcards

0
Q

What is targeting?

A

strategy of focussing on a certain group of consumers

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1
Q

What is segmentation?

A

Process of dividing consumers into distinct groups

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2
Q

What is positioning?

A

Strategy of using different message from competitors to communicate to different groups
By creating perception that the product of different from what is offered from others

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3
Q

Why do marketers segment markets?

A

Increase sales and profits

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4
Q

How do they increase sales and profits?

A

Focus on just a few groups of customers

Enough resources to respond effectively

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5
Q

What are the characteristics of each segment?

A

Have common needs

Respond similarly to marketing action

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6
Q

What is a market segment

A

Relatively homogenous group of prospective buyers from market segmentation process

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7
Q

How do firms cater to different market segments?

A

Product differentiation

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8
Q

Product differentiation uses positioning and it is a strategy that

A

Involves using marketing mix to change perception of it being better

Perceived difference may be physical or nonphysical

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9
Q

Sales and profits is also called

A

ROI

Return on investment

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10
Q

If sales are higher without segmentation,

A

Do not segment

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11
Q

What are the options after segmentation?

A

One product to cater to multiple market segments
Multiple product and multiple market segments
Segments of one- mass customization

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12
Q

When is ‘one product to cater to multiple segments’ used?

A

Firm can only product single product or service
No extra costs of developing and producing additional versions
Attempt to sell it to two or more

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13
Q

‘Multiple products and multiple market segments’ may be more expensive. It is justified when

A

Customers needs are served better
Quality is not reduced
Having different products do not lead in increase in price
Adds to sales and profits

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14
Q

Segments of one involves

A

Tailoring different product for each customer on several sets of options available

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15
Q

Why is mass customization used?

A

Customer has unique wants and needs
Customer desires unique treatment. Tender loving care
Economies of scale make it affordable
Customer are less willing to compromise their individual tastes and settle for standardized products
Internet ordering, flexible manufacturing, marketing processes make it easier

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16
Q

What are the five steps in segmenting a market, selecting and reaching target segments?

A

Group potential buyers into segment
Group products to be sold into categories
Develop a market product grid and estimate size of market
Select target markets
Take marketing actions to reach target market

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17
Q

Criteria that must be met before segments are formed is called

A

Criteria to use in forming segments

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18
Q

What criteria must be met before segmentation is carried out?

A

Potential for increased profit
Similarity of needs of potential buyers within segment
Difference of needs of buyers among segment Potential of a marketing action to reach a segment
Simplicity and cost of assigning potential buyers to segments

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19
Q

There is potential for increased profit when

A

Different groups of customers are willing to pay different prices

Target the most profitable group

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20
Q

Why must needs be similar in the segment?

A

A unique product can be created diff from competitor

To meet their needs

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21
Q

Why there must be difference of needs among segments?

A

The more segments there are, more versions marketer has to create
Cost higher, profits lower
Combine into fewer segments

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22
Q

Potential for marketing action to reach is important because

A

Company must let them know that product is unique and superior
They must see that they belong to the segment

23
Q

Characteristics of potential customers should

A

Be easily recognized
Without incurring excessive costs
Expensive tests should not be required to categorize

24
Q

The characteristics to segment consumers are known as

A

Variables

25
Q

The two categories of variables are

A

Customer characteristics

Buying response

26
Q

The dimensions of customer characteristics include

A

Geographic
Demographic
Psychographic

27
Q

Geographic segmentation is used when

A

Consumers residing in different geographic regions behave different and have different needs
Due to weather, resources available, landscape

28
Q

Geographic segmentation is broken into

A

Geographic region

Geographic density

29
Q

Demographic variables are used when

A

Consumers behave different and have different needs due to demographic group

30
Q

Demographic variables include

A 
Gender
Age
Ethnicity 
Income 
Occupation type
31
Q

Psychographic variables are used on consumer who

A

Live near one another
Have similar interests
Buy similar products and services

32
Q

Psychographic variables include

A

Lifestyle
Values and attitudes
Personally

33
Q

The dimensions in buying responses are

A

Benefits sought

Usage/patronage

34
Q

Benefits sought is about

A

Consumers having different wants or preferences

It is a manifestation of deeper needs

35
Q

The variables for benefits sought include

A

Product features

Needs

36
Q

Usage refers to classification according to

A

Usage or purchase patterns

37
Q

the variables in usage are

A

Usage rate

User status

38
Q

What are the categories in user status?

A 
Non user
Ex user 
Prospect
First time 
Regular
39
Q

What are the categories for usage rate

A

Light
Medium
Heavy

40
Q

Why group products into categories?

A

See how many products can be sold to each customer segment

41
Q

What is a market grid?

A

Horizontal rows: market segments
Vertical: products

Each cell shows estimated market size the product can be sold to specific market segment

42
Q

What is the purpose of a market grid analysis?

A

See which segment is the most profitable to set die

43
Q

What are the criteria in selecting a target market?

A 
Market size
Expected growth
Competitive position
Cost of reaching the segment
Compatability with organization objectives and resources
44
Q

How to reach target market?

A

Repositioning by using the 4Ps

45
Q

What is product positioning (n)

A

Place an offering occupies in consumers mind

Based on important attributes relative to competitive products

46
Q

Product repositioning involves

A

Changing the place an offering occupies in consumers mind relative to competitive products

47
Q

How to position product?

A

Head to head

Differentiation

48
Q

Head to head positioning involves

A

Competing directly with competitors

On similar product attributes in same target market

49
Q

Differentiation positioning involves

A

Seeking a less competitive
Smaller market niche
Locating a brand

50
Q

To position a product,

A

A perceptual map is used

51
Q

A perceptual map shows

A

Perceptions of potential customers about brands
Charted and displayed
Based on two dimensions

52
Q

Segments in geographic region are

A

North
South
East
West central

53
Q

Categories in density are

A

Urban
Suburban
Small town
Rural

54
Q

Segments in occupation are

A

PMEB
white collar
Blue collar

55
Q

Segments in product features are

A

Aesthetics
Functional
Performance
Expressive

Marketing (9 decks)

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