Chapter 5

Question 1

Market Segmentation

Answer 1

• the process of breaking down all consumers into groups of potential buyers w/similar characteristics.

Question 2

Targeted Marketing (AKA differentiated marketing)

Answer 2

• choosing select groups of people to sell to.
  Ex. Alfred P. Sloan of GM

(Rifle approach)

Question 3

Mass Marketing (AKA undifferentiated marketing)

Answer 3

• selling the same product to all consumers.
  Ex. Henry Ford, Healthy Choice frozen dinners

(Shotgun approach)
*blast out as many marketing messages as possible on every medium available as often as you can afford.

Question 4

One-to-One Marketing

Answer 4

• forming close, personal relationships with customers & giving them exactly what they want.

(Rife with a scope approach)

Question 5

Segmentation bases

Answer 5

• criteria used to classify buyers.

Question 6

Behavioral Segmentation

Answer 6

• dividing people & organizations into groups according to how they behave w/or act towards product.
• what benefits do customers want?
• how do customers use our product?

Question 7

Demographic Segmentation

Answer 7

• segmenting buyers by tangible, personal, characteristics -> ages, incomes, ethnicity, family sizes, etc.
• how do the ages, races, & ethnic backgrounds of our customers affect what they buy?

Question 8

Geographic Segmentation

Answer 8

• segmenting buyers by where they are located.
• where are our customers located & how can we reach them?
• what products do they buy based on their locations?

Question 9

Psychographic

Answer 9

• what do our customers think about & value?

- How do customers live their lives?

Question 10

Retro Brands

Answer 10

• old brands/products companies “bring back” for a period of time.

Question 11

Advergames

Answer 11

• electronic games sellers create to promote a product or service.

Question 12

Geocoding

Answer 12

• the process of plotting geographic marketing info on a map.

Question 13

Geodemographics

Answer 13

• combining both demographic & geographic info for marketing purposes.

Question 14

Proximity Marketing

Answer 14

• The process of segmenting buyers geographically & targeting them w/in a few hundred feet of their business using wireless technology.

Question 15

Consumer Insight

Answer 15

• An understanding of consumers that results when both quantitative & qualitative info are gathered about them.

Question 16

Multisegment Marketing

Answer 16

• targeting multiple groups of consumers.

Question 17

Concentrated Marketing

Answer 17

• targeting a very select group of customers.

Question 18

Microtargeting

Answer 18

• the process of gathering multiple sources of data available on people. (tax & phone records, what catalogs people received, etc)

Question 19

Positioning

Answer 19

• Tailoring a product or its marketing so that it stands out from the competition & people want to buy it.

Question 20

Perceptual Map

Answer 20

• a two-dimensional graph that visually shows were a product stands/should stand, relative to its competitors.

Question 21

Tagline

Answer 21

• A catch phrase designed to sum up the essence of a product.

Question 22

Repositioning

Answer 22

• An effort to “move” a product to different place in mindset of consumers.

Question 23

A price-focused segment (B2B)

Answer 23

• composed of small companies that have low profit margins & regard the good/service being sold as not being strategically important to their operations.

Question 24

A Quality & brand-focused segment (B2B)

Answer 24

• composed of firms that want the best possible products & are prepared to pay for them.

Question 25

A service - focused segment (B2B)

Answer 25

• Composed of firms that demand high-quality products & have top-notch delivery & service requirements.

Question 26

A partnership focused segment (B2B)

Answer 26

• composed of firms that seek trust & reliability on the part of their suppliers & see them as strategic partners.